140945 Limpopo Gambling Board AR DRAFT 7

1. Auditor’s Report: Predetermined Objectives

The AGSA currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to Management and no material findings on the usefulness and reliability of the reported performance information for the Compliance programme were raised.

Refer to page 110 of the Report of the Auditors Report, published as Part E: Financial Information.

2. Overview of Performance

2.1. Service Delivery Environment

The impact of COVID-19 during the 2021/22 financial year had subsided compared to 2020/21 financial year as the programme for inoculating the population progressed since March 2021. Although the National State of Disaster declared on 15 March 2020 and a National Lockdown which started on 26 March 2020 due to COVID-19 continued at various alert levels, many economic activities slowly returned to normality with various economic activity disruptions due to higher alert levels declared during the year. The low levels of business activity during the year contributed to the country’s gloomy economic outlook during 2021. The slow and subdued economic recovery, the continued National State of Disaster and the National Lockdown, closure of some businesses and the loss of jobs did not affect the levies collected by the Entity since the levies collected rose by 40% compared to the overall decline in the levies collected by the Entity from Licensees in the 2020/21 financial year. The recovery of levies collected from Licensee is led by Bookmakers and LPMs which increased by 49% and 36% respectively, whereas at the lower end of recovery the increase in Totalizator levies collected rose by 20%, followed by Bingos and Casinos at 30% and 32% respectively. Despite the recovery, the levies collected in 2021/22 are still below the COVID-19 levels of revenue collected. The status of licensed establishments in the Limpopo Province includes three Casinos, two LPM Route Operators, 244 LPM Site operators, five Bingo Operators, seven Bingo Sites, nine Bookmaker Operators and 95 Bookmaker sites, and one Totalizator with 25 Totalizator Sites. Ten Entities which provide gambling related goods and services to the licensed gambling and betting establishments have been issued with Certificates of Suitability. In July 2021 the Board received 15 Type A LPM Site licence applications from Vukani Gaming Limpopo (Pty) Ltd and 10 Type A LPM Site licence applications from Goldrush Gaming Limpopo (Pty) Ltd in August 2021. Fourteen of the applications received were finalised by 31 March 2022; whereas, the rest of the applications will be finalised in the first quarter of 2022/23 upon receipt of outstanding information. 2.1.1.Compliance

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