41 40 rience. “The majority of our guests come for the restaurants, the shows and the children’s facilities,”Vass said.“We are currently working towards completing our US$62.5 million ex- pansion programme by October which will see an additional 5,400 square feet added to our entertainment facilities and 15,000 square feet to the casino floor, offering a 1,100 slot, 24 table gaming smoking allowed casino. Plans also include a fast-food court, bowling alley and a 12,000 people capacity multi-purpose arena. Political concerns While many operators feel that the current gaming growth climate should continue for a few years yet, and foresee no reason for an economic downturn in their fortunes, they are aware that a number of factors, including politics, could affect their business in future. “In many respects, gaming mirrors the retail sector and, as a result of the economic boom, the casino industry has experienced the same success the retail industry has en- joyed,” Collins said. “We are as reliant on the discretionary income of consumers as retail operators and, to the extent that there is discretionary income in the marketplace, all retailers that are selling nonessential items, which is what gaming can be considered, have enjoyed the same ride of the wave.” But Collins believes the gamingmarket is fast approaching maturity, and there will be a slight slowing-down of profitability.“Exter- nal factors such as the petrol price increase and interest rate hikes will impact on discre- tionary spend, and I believe that the growth figures enjoyed by casinos will be checked somewhat,” he said. Joffe believes that, pro- viding the economic climate remains largely unchanged, political factors shouldn’t neces- sarily affect casino profits. “It’s always difficult to predict major shocks to our economy or industry,” Joffe said. “As things stand today, we expect no downturn in casino profitability. Provided that there are no major policy shifts in gov- ernment policy and the government contin- ues its prudent fiscal management as well as its work towards alleviating poverty, improv- ing housing, education and infrastructure and fighting HIV/AIDS,we do not believe that our industry will be affected by a change in political leadership.” Indeed, Joffe touches upon another fac- tor that could have potential ramifications for the gaming industry as soon as next year, namely a radical change in political leader- ship style. The controversial former Deputy President of the country, Jacob Zuma, whose image has been tainted by allegations of cor- ruption and sexual misconduct, and who has been relieved of his post pending investiga- tion into his affairs, appears set to make a run as the country’s next President. With a large popularity base among workers, Zuma’s chances of heading the country are not be- yond the realm of possibility. In Africa, where dictatorships are the or- der of the day, many political analysts fear that President Zuma could undo the sound work done by his predecessors in establish- ing a culture of accountable government and sound fiscal economic policy. How this would affect the country’s economic growth and ultimately the casino industry is a matter of conjecture, but one that does cause some concern in certain sectors. Collins, however, does not believe that political factors will have much of an impact on the casino industry. “I think that, at end of day, we’re all lifestyle and leisure destina- tions and I don’t believe, unless something catastrophic happens in government, that it will have any impact on the casino industry,” he said.“Political factors don’t have anything to do with how people spend their money and their leisure time, and increased interest rates only have an impact to the extent that people have less discretionary spend at the end of the month.” As for a paradigm shift in regulation of the casino industry,Themba Marasha, acting CEO of the National Gambling Board, does not foresee radical changes to the casino regulatory system. However, he also hinted that future political factors and the gov- ernment’s ongoing concern with an over- stimulation of the latent demand for gam- bling may see politics play a greater role in determining the future of other forms of gambling. “With the change of political dispen- sation, we might see some impact on the gambling industry,” Marasha said. “Political decisions lead the way in the form of a policy and then enabling legislation.Take the issues of dog-racing and Internet Gambling for ex- ample. If a political decision is taken to allow these forms of gambling, then they will see the light of day; if not, then prohibiting legis- lation will be formulated whether the market wants it or not.” By Roy Bannister, reprinted with permission from International Gaming and Wagering Business (IGWB) magazine. Roy Bannister is the publisher and editor of Gaming for Africa magazine, Southern Africa’s leading casino industry publication. He may be reached by e- mail at
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