LIMPOPO GAMBLING BOARD A/REPORT 2022/23

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 118 of the Auditors Report, published as Part E: Financial Information.

2. Overview of Performance

2.1. Service Delivery Environment

The Compliance and Law Enforcement Business Units provided the core services of the Entity in line with the gambling legislation and the policy mandates.

The information outlined below highlights the gambling trends and how both the above Business Units and the gambling industry were affected.

The National State of Disaster was lifted on 05 April 2022 due to the impact of COVID-19 having subsided towards the end of the 2021/22 Financial Year, and the programme for inoculating the population progressed since March 2021. Many economic activities slowly returned to normalcy throughout the financial year due to the lifting of the National State of Disaster. The lifting of the National State of Disaster by the State president created a conducive opportunity for business within the gambling industry to recover to normalcy as conditions which were imposed as a result of mitigating the spread of COVID-19 had a negative impact on their operations. The current economic environment post COVID-19 also enabled the Entity to exceed revenue collection as most of the gambling amenities operated and additional sites were opened. Statistics South Africa records that the financial year started on the back of the South African gross domestic product (GDP) having expanded by 1,9% in the first quarter of 2022, representing a second consecutive quarter of upward growth. The size of the economy was now at pre-pandemic levels, with real GDP slightly higher than what it was before the COVID-19 pandemic. The slow economic recovery after the lifting of the National State of Disaster and the National Lockdown, closure of some businesses and punter apathy did not affect the levies collected by the Entity, since the levies collected rose by 51% compared to the overall increase in the levies collected of by the Entity from Licensees in the 2021/22 Financial Year. The recovery of levies collected from Licensees was led by Bookmakers and Casinos which increased by 96% and 20% respectively, whereas at the lower end of recovery, the increase in LPM levies collected rose by 7% followed by Bingos by 4% respectively. The levies collected for Totalisators declined by 5%. The levies collected in 2022/23 are higher than the pre-COVID-19 levels of revenue collected. 2.1.1. Compliance

LIMPOPO GAMBLING BOARD

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