Lekopanye Mooketsi
15 December 2004
The Casino Control Board's 2004 annual report shows that local casinos earned a gross revenue of P81 million last year. According to the report, the total contribution of revenue to the government amounted to P8 million which consists of 10 percent licence levies and 50 percent entrance fees, excluding other forms of corporate tax.
There are eight licensed casinos in the country namely; Gaborone Sun Hotel, Grand Palm, Menateng at Bosele Hotel in Selebi-Phikwe, Marang Hotel in Francistown, Admiral at Thapama Hotel in Francistown, Kings at Cumberland Hotel in Lobatse, Admiral at Syringa Lodge in Selebe-Phikwe and Teemane at Mokala Lodge in Jwaneng.
The Gaborone Sun Casino, which is the oldest and biggest, topped the bill with its earnings. The total gaming revenue for the 15-month period ending March 31, 2004 was P43 million. Revenue for the 12-month period ending December 31 2003 was P35 million, which is lower than the previous year's corresponding period by 10 percent.
The report attributes this to the lower revenue earned from slots of 12 percent partially offset against higher revenue earned from the tables.
The report says the casino continues to maintain its leading position in spite of a decline in growth. "Competition coupled with the effects of the current economic environment and the resulting reduction in disposable income of its customers had a negative impact on the results for the year and for the industry as a whole," it says.
During the 15-month period ending March 31, 2004, Gaborone Sun Casino paid P4 million to the government being entrance fees and levies.
The report says the lower levy paid this year compared to last year is due to lower revenue earned, the impact of Value Added Tax (VAT) and the reduction in levy from 15 to 10 percent.
The Casino's performance for the three months from January to March 2004, was down by 12 percent as compared to the previous year.
The report shows that the total gaming revenue for Grand Palm at the end of March, 2004, was P36 million. It further states that the Grand Palm Casino continues to maintain its second position in the current year. However, its growth in revenue has dropped from a healthy 11 percent last year. This is attributable to the current economic environment and the consequent reduction in disposable incomes of its customers.
But the report says the Casino has improved its performance in the three months from January to March 2004 by 20 percent compared to the previous year.
During the 15-month period ended March 2004, the Grand Palm Casino paid P3 million to the government.
Marang Casino in Francistown, earned close to P6 million as at end of March 31, 2004. The revenue for the 12 month period ending December 31, 2003 was P4 million which is almost at the same levels with the corresponding period.
Between January and March last year, the Casino has improved its performance by 14 percent compared to the same period in the pervious year, which is shows a positive trend reflective of its likely performance in the following year.
The Menateng Casino in Selebi-Phikwe made P5 million as at end of March, 2004 which was lower than the corresponding period by eight percent. This is attributable to the current economic environment and the consequent reduction in disposable income of its customers in town.
The Casino has not improved its performance in the three months from January to March 2004, and total gaming revenues are lower by eight percent as compared to the same period in the previous year. The report says this may indicate that the same level of results for the current period may be achieved in the coming year.
The total gaming revenue for the Kings Casino in Lobatse, was P4 million as at end March this year. The Casino has not improved its performance in the three months from January to March 2004 and its gaming revenue was lower by five percent compared to the same period the previous year.
The total gaming revenue for Admiral Casino in Francistown for the 15-month period ending March 31, 2004, was P2.77 million. The revenue for the 12-month period ending December 31, 2003 was P2.13, which is lower than the corresponding period by 17 percent.
The reports says the Admiral Casino has improved its performance in the three months from January to March 2004, by 50 percent compared to the same period in the previous year. This shows a positive trend reflective of its likely performance in the following as a result of the improvements made to the casino, including the installation of new slot machines.
The Admiral Casino in Selebi-Phikwe, only made a total game revenue of P600,000 for the 15-month period ending March 31, 2002. The casino paid P78,000 to the government, being entrances fees and levy.
The actual levy for the comparable period was P60,000. The lower levy paid this year compared to last year is due to the impact of VAT and the reduction in levy from 15 to 10 percent.
The report says the Selebi-Phikwe Casino has improved its performance in the three months from January to March 2004 by four percent compared to the same period the previous year. This shows a positive trend of likely performance in the following year as a result of the improvements made to the casino and the installation of new slot machines.
The Teemane Casino in Jwaneng, commenced its operations in February last year, operating slot machines and later expanded with American Roulette and Black Jack table games in May last year.
Its total gaming revenue for the 14-month period ending March 31, 2004 was P2 million.
According to the report, four applications were considered by the Board in terms of the Casino Act and the Presidential Directive of 1990, which restricts issuance of casino licences to hotels of international standards. Casino licences are valid for a period of 10 years and renewable on such terms as the Board may deem fit.
The reports says the Board has begun implementing some of the recommendations of the Botswana Gaming and Gambling Policy.
It further notes that the Attorney General has been given instructions to draft a comprehensive Gaming and Gambling Act that would facilitate full implementation of the approved.
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