| a.
Introduction
CAN
AN INDUSTRY BE RESPONSIBLE
IF ITS CORE BUSINESS CAN
LEAD IN SOME CASES TO
IRRESPONSIBLE BEHAVIOUR?
Gambling is as old as
history, such is mankind's
urge to take risks and
tempt fortune. In the
early years of the industry
in Nevada, it was characterised
by the involvement of
organised crime, and for
all these reasons, since
then governments have
taken steps to regulate
and control the industry
to ensure high standards
of probity, player protection,
and an ethical and accountable
industry, as is to be
found in South Africa
today. This approach is
based on the recognition
that public policy must
accept the inevitability
of gambling and find ways
of controlling and constraining
rather than suppressing
society's tendency to
gamble.
Before
1996 in this country,
we had no such constraints
and the consequences were
there for all to see.
Before the introduction
of the National Gambling
Act in that year, South
Africa had a flourishing
illegal gambling industry
which was almost entirely
controlled by whites,
offered players no protection
against fraud, was readily
available to minors and
totally ignored problems
associated with compulsive
and problem gambling.
A decade later, illegal
machines are down from
approximately 150 000
to less than 10 000, while
the number of legal machines
has increased from the
approximately 7 000 which
existed in the pre-1996
old "homeland" casinos
in 1994 to 25 000 in 2003,
a figure which is still
well below these which
existed illegally.
Today,
there are 34 legal casinos
in all nine of South Africa's
provinces, bringing numerous
benefits to the locations
and communities where
they operate. 2 Further licenses have been awarded and are being developed. The provisions
of the National Gambling
Act, along with the regulations
made in terms of it, have
provided South Africa
with a regulatory framework
which is universally regarded
as the most stringent
and scrupulous gambling
regime in the world.
A substantial body of
international and local
research has documented
the benefits of legalised
and regulated casinos,
but there is still a good
deal of public and official
disquiet about the perceived
social impact of the industry.
This publication addresses
some of those misconceptions
about casino gambling,
drawing on the findings
of studies from throughout
the world and from South
Africa.
Because
South Africa's casino
industry is still relatively
young by international
standards, local research
is still in its infancy.
For this reason, this
publication draws very
largely on the findings
of research conducted
in comparable jurisdictions.
The Casino Association
of South Africa is realistic
about problem gambling
research and acknowledges
that we are dealing with
a developing body of knowledge.
It is true that we know
relatively little about
problem gambling, especially
about its causes. There
is, for example, a lack
of conceptual consensus
about what constitutes
gambling-related harm
and it is therefore difficult
to obtain a clear estimate
of the qualitative level
of severity or the number
of individuals who may
require assistance with
a gambling problem. Equally,
there is often contradictory
evidence to demonstrate
whether harm-minimisation
measures have any significant
impact, and for this reason
regulatory responses have
sometimes been applied
in the absence of any
evidence that supports
their effectiveness. What
is indisputable, however,
is that while safe gambling
is possible and that the
great majority of gamblers
do so without any harm
to themselves, a proportion
of gamblers and those
close to them do indeed
suffer harmful consequences.
This makes it all the
more important to ensure
that the casino industry
in South Africa maintains
its reputation as responsible
licence-holders in the
promotion of ethical,
accountable, and crimefree
gaming conduct.
b.
Questions and Answers
QUESTION
WHAT
ARE THE ECONOMIC IMPACTS
OF THE CASINO GAMBLING
INDUSTRY IN SOUTH AFRICA?
ANSWER
The
legalisation of casino
gambling in South Africa
introduced a rigorously
and effectively regulated
legal industry that has
contributed very substantially
to the public purse and
funded considerable infrastructure
in South Africa's leisure
and tourism sector.
In
2002, the National Gambling
Board commissioned a study
i to establish the economic
impact of gambling in
South Africa, including
its contribution to GDP.
It found that the initial
impact (measured as the
direct spending of gambling
institutions) of the gambling
sector in 2000 amounted
to just more than R3-billion
with an additional spillover
effect (indirect and induced
impact ii) of R6.1-billion.
The
study also looked at capital
investment and found that
just between 1997 and
2000 no less than R10.1-billion
was invested, representing
2.1 % of the total South
African capital formation
of R493.7-billion during
the same period.
Since
then, it has been estimated
that in only 11 years
the casino industry has
been responsible for more
than R15-billion in new
investment in all nine
provinces, adding more
than R36-billion to GDP
in terms of economic multipliers.
The industry has created
almost 100 000 direct
and indirect jobs and
in 2005/6 alone, accounted
for over R1.07-billion
in provincial gaming taxes
and VAT which, together
with company tax, contributed
close to R2.7-billion
to government revenue.
Casinos account for more
than 83% of all gambling
taxes paid to government,
according to the National
Gambling Board.
It
is thus a significant
industry by any yardstick,
and in particular, it
is a key component of
South Africa's tourism
and leisure industry.
In recent years, CASA
members have invested
heavily in infrastructure
and tourism plant, including
two new international
convention centres, and
over 5 000 new hotel rooms,
for example, and a wide
range of other public
interest projects and
spending, as various as
internationallyknown golf
courses, new roads, eco-tourism
facilities, airport re-development,
museums, and wellness
centres, to mention but
a few.
There
is also clear evidence
that the casino sector
has substantially advanced
Government's economic
transformation agenda
in respect of the tourism
and leisure industry.
Previously disadvantaged
shareholders enjoy substantial
control (just over 60%
of voting shares, on average)
in the casino industry,
while these same shareholders
have, on average, a 38%
effective economic interest
in South African casinos.
On both counts, this exceeds
comparable economic sectors.
The industry's fulfilment
of its black economic
empowerment obligations
through recruiting, training,
procurement, outsourcing
and other measures is
constantly monitored by
the authorities.
i Indirect impact results
from additional activities
of suppliers (e.g. additional
bricks, cement and trusses
are manufactured with
the building of a new
casino).
ii Induced impact on the
economy is due to the
increased demand for goods
and services by households
on the strength of the
remuneration earned due
to the establishment of,
say, a casino.
QUESTION
WHERE
DOES ALL THE MONEY GO?
ANSWER
Casino
revenues are distributed
as follows:
-
40.68% (R3.4-billion)
in revenue, by far the
largest share, goes
to provincial and national
government in tax made
up as follows:
- R855-million in corporate
tax and STCs
- R255-million in PAYE
- R876-million in provincial
taxation
- R1.3-billion in VAT
- R68-million in other
(property rates, RSC
levies, etc.)
-
21.39% (R1.8-billion)
in revenue goes to employees;
-
0.68% (R57-million)
is spent on corporate
social investment programmes.
This spend is related
to net profit as a percentage;
-
4.94% (or R419-million)
is paid in interest
to banks to service
debt;
- Shareholders
get only 8.48% (R721-million);
- 1.77%
(or R151-million) is
paid on lease costs;
- The
balance of 22.06% (R1.8-billion)
is retained in the business
for depreciation and
to facilitate future
growth.

Click here for PDF version of these graphs.
QUESTION
DO
CASINOS CAUSE AN INCREASE
IN PROBLEM GAMBLING?
ANSWER
It
is a common assumption
that problem gambling
will self-obviously increase
with the legalisation
of casinos and increased
opportunities for gambling.
However, research in this
area is by no means conclusive
and has often reached
the opposite conclusion.
In America, for example,
the prevalence of problem
gambling remained largely
unchanged between 1976,
when Nevada was the only
state in which casino
gambling was legal, and
1999, when casinos had
been legalised in almost
30 states. According to
the Commission on the
Review of the National
Policy Toward Gambling2,
the 1976 figure for pathological
gambling in the USA was
0.77%. More than twenty
years later, this figure
was estimated to stand
at 0.6%.
A
similar conclusion was
reached in 2000 by the
Public Sector Gaming Study
Commission3, an independent
panel of state and local
officials that reported
that the incidence of
problem gambling cannot
be related to the expansion
of gambling opportunities.
The report said: "In short,
there is no solid basis
for concluding that the
wider legalisation of
gambling, which has cut
into illegal gambling,
has caused a concomitant
increase in pathological
gambling. In fact, it
appears that pathological
gambling is quite rare
within the general population,
and does not appear to
be increasing in frequency."
In
South Africa, independent
research demonstrates
that problem gambling
actually decreased
between 2003 and 2006,
with only a small increase
as lottery sales grew
over the period.
In
New Zealand, too, Abbot
and Volberg's study into
the incidence of problem
gambling before and after
the introduction of casinos
found that the introduction
of casinos does not necessarily
lead to an increase in
problem gambling. In fact,
the prevalence of pathological
gambling in the general
population declined from
1.2% to 0.5% between 1991
and 1999.
An
important factor that
has emerged is that in
all those jurisdictions
where studies have shown
that despite increased
legal opportunities to
gamble, rates of pathological
gambling have been stable
or declined over periods
ranging from two to eight
years, comprehensive services
for problem gamblers -
including public awareness
campaigns, counselling lines and
professional counselling
programs - were introduced
at the same time, as has
been the case in South
Africa.
QUESTION
IS
CASINO GAMBLING MORE ADDICTIVE
THAN OTHER TYPES OF GAMBLING?
ANSWER
No,
in fact arguably less
so.
International
research confirms that
the introduction of casinos
does not necessarily lead
to an increase in problem
gambling. A study by Dr
Rachel Volberg5 on the
introduction of casinos
in Montana, North Dakota,
Oregon and Washington
State compared problem
gambling rates before
and after the introduction
of casinos. She found
that in Montana and North
Dakota the incidence of
problem gambling and pathological
gambling as measured by
the South Oaks Gambling
Screen increased substantially.
In Montana, which had
the larger increase, problem
gambling grew from 2.2%
of the adult population
to 3.2%, and pathological
gambling from 0.7% to
1.6% (as measured by the
South Oaks Gambling Screen).
However, in Oregon numbers
for problem and pathological
gamblers declined - in
Oregon from 3.3% to 2.3%
for problem gamblers and
from 1.4% to 0.9% for
pathological gamblers.
The critical variable,
according to Volberg was
whether the introduction
of casinos was accompanied
by the provision of services
for problem gamblers including
programmes to enhance
public awareness about
gambling and its potential
dangers.
Volberg's
finding that the introduction
of casinos does not necessarily
lead to an increase in
problem gambling in jurisdictions
with good problem gambling
prevention services is
replicated in the study
which she undertook with
Dr Max Abbott6 into the
incidence of problem gambling
in New Zealand before
and after the introduction
of casinos where problem
gambling services were
extensive and where problem
gambling numbers decreased.
This
finding is also confirmed
by studies undertaken
by Professors Peter Collins
and Graham Barr7 in South
Africa where, again there
is an extensive programme
for raising public awareness
about the dangers of gambling
and how to avoid them.
They found that, between
2001 and 2003 during which
time there was a considerable
increase in the availability
of legal casinos in South
Africa, the number of
problem gamblers amongst
those who engaged regularly
in some form of gambling,
other than the lottery,
remained constant. (There
were, in 2001, 186 such
respondents out of 5 800
with access to the new
forms of gambling - large
casinos and the National
Lottery - who answered
more than a third of the
Gambler's Anonymous 20
questions in the affirmative.
In 2003 there were 270
out of 5 816).
Between 2003 and 2006, problem gambling shared a declining incidence.
Australia
is frequently cited as
a jurisdiction whose mistakes
must be avoided because
of the apparently high
incidence there of problem
gambling. However this
is recognised to be overwhelmingly
due to the proliferation
of much more accessible
machine gambling in bars
and clubs rather than
to the existence of one
large casino in each of
the largest Australian
cities. As the Productivity
Commission8 concludes:
"There
is insufficient evidence
to argue that casinos
are a particularly serious
source of problem gambling.
In fact, with respect
to gaming machines, the
evidence points the other
way: less problems appear
to be attributable to
casinos than to clubs
and hotels. In large part
this reflects their small
numbers, their location
and role as a destination
for many, and the small
proportion of total expenditure
on gaming which they reflect".
Different
forms of gambling vary
in numerous ways, including
issues such as accessibility
and proliferation, price,
size of maximum possible
win, the possibility of
continuous play, the element
of skill or judgement
involved and the frequency
and immediacy of payout.
Different theories of
the most addictive elements
involved exist, but the
most addictive forms of
gambling seem to be those
that are most accessible.
In
South Africa, independent
research shows that casino
gambling is predominantly
a middle and lowermiddle
income activity. Only
5% of people in low income
groups regularly play
a slot machine in a casino,
because of barriers to
entry like price and accessibility.
QUESTION
HOW
MANY PROBLEM GAMBLERS
ARE THERE IN SOUTH AFRICA?
ANSWER
Throughout
the world, the evidence
is that while the vast
majority of gamblers do
so without any harm to
themselves or others,
there will always be a
small percentage of the
population who will gamble
irresponsibly or develop
a gambling problem, in
the same way that some
people will use credit
cards irresponsibly or
drink excessively.
In its 2006 report the
National Centre for the
Study of Gambling at UCT
found that 144 out of
3003 respondents answered
seven or more of the 20
Gamblers Anonymous questions
affirmatively.
In terms of participation in gambling, the findings of the
research project suggest that 81.5% of people play the
lottery regularly (once a week), up from 72.3% two years
ago. There had also been some growth in the number of
people wagering on horses (5.9%), up from 5.7%, and
table games in casinos at 2.2%, up from 1.4% in 2003.
Other forms of gambling showed a slight decline
compared to 2003, including slot machines at 13.9% (down from 14.1%), newspaper jackpots at 2.6% (down
from 3.3%), and scratch cards at 14% (down from 15%).
The number of people who only play the lottery has grown
from 41.4% two years ago to 52.5% in 2005.
The number of people who never gamble, which was
20.1% in 2003, has declined to 15% in 2005.
Somewhat less than 1%
of the adult population
in South Africa could
be considered compulsive
or addicted gamblers,
and 4.8% are people who
gamble too much to the
point where it is causing
serious problems to themselves
and those close to them
and who would benefit
from education and/or
counselling.
These
surveys reveal that there
has been a decrease in problem gambling
between 2003 and 2006,
other than a small increase
amongst those who only
play the lottery. This
is attributed mainly to
the fact that the accessibility
of machine gambling, especially
to poor people in terms
of both location and price,
has clearly declined since
the very extensive illegal
casino industry was almost
entirely replaced by the
34 legal casinos which
have been opened since
1996.
These
results are broadly in
keeping with international
trends.
QUESTION
ARE
SENIOR CITIZENS OR YOUNG
PEOPLE MORE LIKELYTO BECOME
PROBLEM GAMBLERS BECAUSE
OF THE AVAILABILITY OF
LICENSED CASINOS?
ANSWER
A
2004 survey, A Profile
of Youth Gambling in South
Africa, conducted by
the University of the
Witwatersrand on behalf
of the National Gambling
Board, found that 5.1%
of school-goers surveyed
across South Africa indicated
a strong predisposition
to gamble and constituted
a core of potential problem
gamblers. This figure
matches the international
experience and, in part,
reflects the fact that
adolescents are more inclined
towards risky behaviour
and impulsivity than adults.
Significantly,
it was found in the Wits
study that 1.4% of adolescents
claim to have gambled
in a casino, much less
than those who have played
the lottery (9.1%), scratch
cards (4.5%), sports betting
(5%), cell phones (2%),
or in various forms of
informally organised gambling
such as flipping coins
(3.5%), card games (2.7%),
or dice (1.9%).
When
the NRGP's problem gambling
sample was analysed by
income and race, it was
found that the distributions
were fairly flat and did
not provide evidence for
the view that the poor
are especially irresponsible
when it comes to spending
their money on gambling,
nor for the view that
black people are especially
likely to exhibit gambling
problems. (Exactly 5%
of black respondents were
identified as problem
gamblers as opposed to
6.2% of coloured respondents,
3.4% of whites and 4.5%
of Indians.)
This finding was supported
by a 2004 study undertaken
by Stellenbosch University,
which investigated whether
social grant recipients
living near casinos were
spending their grant money
on gambling. The study
indicated that hardly
any beneficiaries reported
that they had gambled
at casinos.
This
shows conclusively that
poor people are no more
reckless, or feckless,
when it comes to gambling
spend than others in society.
It is generally true that
casino gamblers tend to
be better educated and
to earn higher incomes
than the average household.
This has been borne out
by the South African experience,
which has established
that while all income
groups, including the
poorest, tend to play
the lottery, casino and
slot machines tend to
attract the more affluent.
International
research provides no evidence
that the elderly are particularly
prone to the development
of gambling problems.
In 2003, the National
Institute of Justice in
the USA published a study13
which compared the gambling
behaviour of elderly people
to younger gamblers in
eight jurisdictions. The
study concluded that research
"(did) not support the
view that casino gambling
is a major threat to the
elderly, preying on the
aged and leading them
to destructive gambling
practices." The study
went further and stated
that in fact the elderly
"generally exercise better
money management and experience
proportionately fewer
gambling problems than
the general population."
QUESTION
ARE
CASINOS DEPENDANT ON PROBLEM
GAMBLERS FOR A MAJORITY
OF THEIR REVENUE?
ANSWER
While
problem gamblers clearly
spend more than they should,
this group constitutes
only 5.2% of regular gamblers.
QUESTION
DOES
THE INTRODUCTION OF CASINO
GAMBLING INCREASE CRIME
LEVELS?
ANSWER
Not in modern casinos, which have sophisticated physical security and surveillance systems. In fact, studies
undertaken in Australia suggest that casinos are safer than shopping malls because security is tighter. Similarly,
a national study by the University of Maryland in the US, The Impact of Casinos On Crime and Other Social
Problems, reported that "...casinos are not likely to have a substantial impact on crime and other social problems."
QUESTION
WHAT
IS THE CASINO INDUSTRY
DOING TO REDUCE THE RISK
OF PROBLEM GAMBLING?
ANSWER
South
Africa's responsible gambling
programme is mandated
by the country's National
Gambling Act, which stipulates
that members of the public
who participate in any
licensed gambling activity
should be protected and
that society and the economy
should be protected against
the over-stimulation of
the latent demand for
gambling.
The National Responsible
Gambling Programme (NRGP)
is the only programme
of its type in the world
which is jointly controlled
by a public-private partnership,
the SA Responsible Gambling
Trust, representing both
government regulators
and the gaming industry.
What is particularly important
about the programme is
that, though entirely
funded by the industry
and supervised jointly
by industry and regulators,
it is ultimately answerable
to Government through
the South African Advisory
Council on Responsible
Gambling.
This
model, and the fact that
contributions are voluntary,
yet substantial, is unique
among gambling jurisdictions
world-wide. The NRGP is
funded by the gambling
industry, including the
horse racing, bingo, casinos,
the limited payout machine
industry, and machine
manufacturing sectors,
to the tune of approximately
0.1% of Gross Gaming Revenues.
Casinos account for more
than 85 % of funding.
The only gambling sector
which does not contribute
is the national lottery,
which is still in the
process of discussing
how it should engage with
the programme.
The
NRGP is also unique in
that it combines education,
treatment and research
into a single integrated
programme.
The education component
is aimed at educating
both the public and individuals
working within the industry
about responsible gambling
behaviour and about assistance
that is available for
those who find themselves
in difficulty as a consequence
of their gambling conduct.
The
treatment and counselling
component of the NRGP
is based at the Kenilworth
Addiction Treatment Centre
and operates a confidential,
multi-lingual 24-hour
toll-free counselling line staffed
by trained counsellors.
Diagnosis is available
to those who are suspected
problem gamblers, and
this complemented by outpatient
treatment undertaken by
specially trained professional
psychologists or clinical
social workers, which
is now available in 34
cities and towns throughout
South Africa. There is
also a contractual arrangement
with four residential
treatment facilities,
where the cost is significantly
less than the equivalent
medical aid tariff.
Since
its establishment in May
2000, 5 839 callers to
the toll-free counselling line
have been referred for
free treatment by a medical
professional. A further
2 149 have been assisted
telephonically.
These
counselling and treatment
activities are complemented
by training courses for
various sectors of the
gambling industry, including
social and health care
workers, and regulators
and their staff throughout
the country. In all, some
11 000 industry employees
have been trained on the
subject of problem gambling.
QUESTION
HOW
EFFECTIVE IS THE TREATMENT
OF PROBLEM GAMBLING?
ANSWER
In
South Africa, independent
research indicates that
the NRGP's treatment programme
has proved remarkably
successful. A study by
the University of South
Africa17 analysed a sample
of 100 individuals screened
and referred by the NRGP
counselling line for their outpatient
treatment programme over
an eighteen-month period,
in order to measure the
success of the programme.
It found that after one
year 47% of treatment
seekers managed not to
revert back to gambling
- total abstinence. A
further 28% reported having
relapsed or that their
gambling was controlled.
25% of treatment seekers
reported that they reverted
back to gambling fulltime,
which leaves the success
rate of the treatment
at 75%. Treatment seekers
reported an overall reduction
in gambling participation,
debt and expenditure and
an overall improvement
in social and vocational
functioning.
A
wide range of programmes
exists in South Africa,
ranging from Gamblers
Anonymous to inpatient
treatment centres. There
is no one programme that
is right for all people
and if a treatment programme
hasn't worked for a particular
individual, an alternative
programme may well succeed.
To find out information
about treatment programmes
available in South Africa,
call the NRGP's toll-free
counselling line at 0800 006 008.
Studies
have shown that treatment
is effective in a great
many cases. López-Viets
and Miller15 (1997) conducted
a review of the international
literature on the subject
and concluded that it
"provides some confidence
that cognitive-behavioural
interventions will continue
to be proven effective
in the treatment of gambling
problems."
They
reported that the research
evidence "is unequivocal
with regard to controlled
gambling being a viable
treatment option for some.
Those clients who are
psychologically robust
and have social support
are suitable clients for
controlled gambling should
they choose it as an option.
Abstinence remains a legitimate
goal for those who choose
it or for those with many
contraindications to achieving
control" and that it was
not uncommon for two-thirds
of problem gamblers to
be abstinent or to be
in control of their gambling
at six- or 12-month follow-ups.
Outpatient services appear
to provide equally good
outcomes compared to inpatient
treatments, even when
only a few sessions of
intervention have occurred.
Brief interventions may
also have reasonable outcomes.
A
study by Stinchfield and
Winters (1996) followed
up 274 people treated
in Minnesota, USA and
found that abstinence
rates of 43% at the six-month
follow-up and 42% at 12
months were reported,
with an additional 20%
(at 6 months) and 24%
(at 12 months) gambling
in a controlled way.
QUESTION
DOES
THE CASINO INDUSTRY PROVIDE
ANY BENEFITS FOR LOCAL
COMMUNITIES?
ANSWER
The
casino industry is active
in small business development
and in black economic
empowerment initiatives.
Examples of this include
procurement protocols,
provision of finance for
establishing SMMEs, maintenance
of SMME databases, SMME
subcontracting during
the construction phase,
provision of business
infrastructure to the
local communities in complexes,
etc.
In
addition, various schemes
were designed by institutions
to involve previously
disadvantaged individuals
(PDIs) as co-owners of
newly established companies.
These include equity schemes,
equity funder of last
resort, a predetermined
percentage of equity that
has to be owned by PDIs,
appointment of PDI directors
on company boards, and
other measures.
The
South African casino industry
is also extensively involved
in social investment programmes
which benefit local communities,
particularly the disadvantaged,
and last year, contributed
nearly R30-million to
this purpose. Such community
upliftment programmes
range from the establishment
of trusts to support various
local NGO initiatives
to the upgrading of infrastructure
in less developed areas
and regular donations
towards charitable and
welfare organisations,
as well as beneficiaries
in the environment, arts,
sports, culture and other
deserving causes.
Some
of these activities included:
Peermont Global allocated R20 645 863 to CSI, of which R20.5 million was contributed by Emperor's Palace. Virtually all of this was spent on educational projects, through support to the East Rand Children's Trust and the East Rand Youth Trust. The Children's Trust provides child care in areas where there are no facilities available, such as the Vosloorus After-School Care Centre and nursery schools and crèches in the Ekurhuleni metropolitan area. Other areas of support include the provision of playground equipment and the financial support and mentorship of high school learners. The Trust has sponsored 200 learners at Star Schools, installed ten media centres, built 13 jungle gyms and awarded ten schools capital funds to start tuck shops.
Peermont Global assists the youth of the Ekurhuleni area by offering full study bursaries to candidates from disadvantaged backgrounds. The East Rand Youth Trust has to date sponsored 26 students in various fields of study. The student is not obliged to work this bursary back, as it is a gift from the company to uplift the Ekurhuleni Metro Community.
Across its four properties - now part of Peermont Global - Tusk Resorts spent a total of R789 997 on CSI.
Emerald Casino spent R5 million in CSI.
Century Casinos' Caledon property made CSI donations of R294 700, of which R12 650 went to sport development and R130 500 to 16 local senior citizen homes. Since 2002 has rented foyer space to the Overberg Community Trust for the operation of their community shop and the rental paid over to the Trust from April 2005 to 31 March 2006 was R33 092.
In February 2004 the property entered into a 3-year agreement with a BEE company in Caledon to open a laundry for its uniforms and linen. For 1 April 2005 to 31 March 2006 the casino paid R358 515 to this company for services rendered.
Sponsorships and donations by the Hollywood Casino in KwaZulu-Natal have benefited the Newcastle Crisis Centre, Child Welfare, Newcastle Reach for a Dream, Water Tanks for Schools and the Bayete Aids Awareness Campaign. In all, R458 025 was distributed.
Tsogo Sun contributed a total of R5.8 million to CSI projects, of which R2.4 million went to education, R1.3 million to health and welfare - particularly AIDSrelated initiatives - and R1.5 million to sports sponsorships.
In the Gold Reef Group, Gold Reef City donated just over R2 million to causes such as the Orange Farm Township Project, which includes a college and a workshop for the disabled in the area, the Primedia wish list for a kidney donation, the Tomorrow Trust and the YWCA. The casino also committed over R1 million to Noah, a charity that provides homes for AIDS orphans.
The Golden Horse Casino donated more than R650 000. Major donations included the running costs of an Educational Science Centre, the Careways Group - an organisation that provides counselling to people with HIV/AIDS - and the Winter Warmth Campaign.
The Goldfields Casino donated a million rand to the community trust, whose beneficiaries include the Lesedi Mohau Development Centre which educates the unemployed, Northern Free State Outreach (a training programme mainly for women) and House of Hope, which provides food and shelter for AIDS orphans and abandoned children.
Casino Mykonos donated approximately R1.3 million to the West Coast Community Trust. This was distributed to institutions working with traumatised children, the Karitas School for children with special educational needs and the Indlu Yothando Day Care Centre for the aged.
The Garden Route Casino donated over a million rand to a local community trust. A commitment of R500 000 was made to the first AIDS Hospice in Mossel Bay. Other smaller efforts were made such as repairs at the local Child Welfare building, donating blankets, etc.
Through various social programmes and donations, both at national and business unit level, Sun International's contribution to CSI amounted to 2% of after tax profit. Among the group's beneficiaries were the Sports Trust, which approved projects in the amount of R5.7 million. Projects assisted at a national level also included Disability Sports South Africa (DISSA), which will receive an amount of R3.5 million over the next three years, the Arts and Culture Trust and the Variety Club, to which Sun International donates R10 000 every time the Grand Progressive Jackpot is won.
R10 000 for every jackpot paid out on the Dream Machine is donated to Reach For A Dream, which assists children who have been diagnosed with a life-threatening illness. Other major beneficiaries are the National Sea Rescue Institute and the South African Chefs Association.
Individual Sun International properties spent a total of R19.5 million on CSI projects during the year. Such regional projects and sponsorships have included the Tapologo AIDS Hospice in Rustenburg, which received R2.5 million, Soundtrack 4 Life, the Faranani Hydroponic Project which creates sustainable farming jobs in Limpopo Province, and Habitat for Humanity. Sun International sponsored the Macufe Arts and Cultural Festival in Bloemfontein, renovated the Odi Hospital Paediatrics Ward which assists patients from Mabopane, Garankuwa, Soshanguve and surrounding communities, and made contributions to the Read Educational Trust in Port Elizabeth, the Kwa-Mashu Old Age Home, housing Projects for AIDS orphans and the Childhood Cancer Association.
In the Eastern Cape, the Wild Coast Sun paid 75% of its R1.2 million CSI expenditure to the Wild Coast Sun Mbizana Development Trust.
A number of sponsorships continue to be granted to welfare organisations including the Heart Foundation, SPCA, Rotary, Police Forums, Starfish, the Red Cross Society and the SOS Children's Fund.
QUESTION
WHAT
ARE SOUTH AFRICANS’
ATTITUDES TOWARDS GAMBLING?
ANSWER
The
National Gambling Board's
2002 survey tested the
personal views of respondents
on gambling. 73% of the
respondents indicated
that gambling was acceptable
to them, 12,2% said that
gambling was not acceptable
to them and 14.8% replied
that while gambling was
not acceptable to them,
they had no objections
to gambling by others.
In response to the question
"Do you regard casino
gambling as an important
leisure activity?" 52.2
% agreed, 23.8 % disagreed
and 24,0 % couldn't say
or didn't know.
Nor
did the NRGP's 2003 survey
reveal any widespread
public antipathy towards
gambling when it asked
respondents how they felt
about the legalisation
of gambling in South Africa.
41% replied that they
felt positive or very
positive about legalisation,
while 35% said they felt
neither positive nor negative.
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