Limpopo Gambling Board Annual Report

5. Chief Executive Officer’s Overview

Introduction

It is with pleasure that I report on the annual performance of the Limpopo Gambling Board against the set targets for 2021/22 as outlined in the Annual Performance Plan. The Entity has managed to perform its regulatory role in the Province despite the challenges that were encountered as a result of the COVID-19 pandemic. The gambling industry was closed from 28 June to 25 July 2021 under Alert Level 4 of the State of National Disaster, with the exception of the sports betting sector. In line with the objectives of regulating gambling, the gambling industry plays a crucial role in contributing towards economic growth, job creation and socio-economic development.

The Entity has achieved 100% (13 out of the 13) of the targets set in the 2021/22 Annual Performance Plan.

Service Delivery Overview

The Entity collected levies amounting to R 129 926 129.67 during the financial year, despite the State of National Disaster and the National Lockdown at various Alert levels throughout the financial year. The levies collected are 60% higher than the levies collected in 2020/21, although the big difference can be attributed to the alleviation of the effects of the State of National Disaster and the National Lockdown which were more severe in 2020/21. At the same time, the levies collected in 2021/22 are higher than the levies collected in the pre COVID-19 period, wherein the highest levies collected in 2019/20 amounted to R117 401 487, 97. This is a good sign that the gambling industry is recovering and the recovery is expected to improve as more of the population gets vaccinated and the effects of the virus subside. Furthermore, it is anticipated that the State of National Disaster and the National Lockdown will be terminated and this should also contribute to the recovery of the gambling industry. Bookmakers contribute to the biggest increase in levies collected, as the levies collected from Bookmakers increased by 49%, followed by LPMs at 36%; whilst Casino levies increased by 32% and Bingo levies increased by 30%. The Totalizator levies increased by 20% compared to a large decline of 54% in 2020/21, at which time the Totalizator, Phumelela Gaming and Leisure Limited (Phumelela) was also put under administration in 2020. The Board is pleased to announce the approval of the acquisition of 100% financial interest in Phumelela by 4Racing (Pty) Ltd. It is expected that this will bring stability to the Totalizator and the horseracing industry.

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