Limpopo Gambling Board Final

LIMPOPO GAMBLING BOARD Financial Statements for the year ended 31 March 2023 26. Contingencies (continued)

The entity’s legal representative stated the following on the issue of contingent liabilities: “Should the board win the case only our Counsel will have to be paid plus/minus R200 000-00. Should the Board lose the case, the Board will have to pay the taxed costs for Goldrush which we estimate to be R300 000-00 plus costs of our Counsel which we estimate to R200 000-00.” SOUTH AFRICAN BOOKMAKERS ASSOCIATION AND 5 OTHERS/NATIONAL GAMBLING BOARD AND 9 OTHERS The entity is opposing an application made by the Bookmaker’s Association of South Africa, who are seeking a declaratory order on whether the entity and other Provinces are allowed to receive bets placed on dog racing taking place in the United Kingdom. The entity does not expect any cash outflows in relation to the matter. The Applicant has not applied for a trial date and there has been no movement in the matter for period under review. The entity’s legal representative stated the following on the issue of contingent liabilities: “The claim by the Applicants is for a declaratory order and not a monetary claim. Should the Board win the case [the Applicant] will be liable for costs of our Advocate which is estimated at R200 000-00. The Applicant sought an application in the High Court to set aside a search warrant and to subsequently seek a mandament van spolie for the return of items seized by the second respondent in respect of an illegal gambling matter. The entity was cited as the 4th Respondent and was duly represented by the State Attorney. On account of the inability of the State Attorney to consult with the second respondent, the State Attorney was not prepared for the court date on 29 October 2019 and as a result, a default judgement was obtained by the Applicant. The State Attorney subsequently brought an application for the rescission of the default judgement. The applicant had filed the answering affidavit and a hearing date is being awaited from the Registrar. The entity’s legal representative stated the following on the issue of contingent liabilities: “Our assessment of the matter is that should the Board be unsuccessful, the anticipated financial liability of the Board will be R200 000 (Two hundred thousand rands)…If successful, the Board will be entitled to legal costs which is estimated at R150 000 (One hundred and fifty thousand rands).” it will be liable for legal costs of both Bookmakers and our Counsel which we estimate at R500 000-00” TCBS TRADING 4 (PTY) LTD 43 LIMPOPO GAMBLING BOARD

LIMPOPO GAMBLING BOARD 2022/23

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