Limited Payout Machines

As defined in the National Gambling Act, 7 of 2004, a ‘‘limited pay-out machine’’ means a gambling machine with a restricted bet and prize.

The  main role players in the LPM sector can be defined in three specific categories, namely route and independent operators, site operators and the National Central Electronic Monitoring System (NCEMS). Route/independent operators are companies that are licensed to own, manage and operate LPMs throughout the country. Site operators are privately-owned hotels, pubs or eating establishments, totalisator or bookmaker outlets which may be situated throughout the country. NCEMS is a centralised LPM monitoring and evaluation system operating on a long-term contract basis by Route Monitoring.

The regulations on LPMs anticipated a roll-out of 50 000 LPMs in South Africa. This was to occur over two phases, the first being 25 000 machines. On 20 June 2003, the first LPM site was established and operated in Mpumalanga. Similar to the rapid development of the casino industry in its early years, growth in GGR in the LPM industry is largely a function of the roll-out of machines.

During FY2023/24, Vukani Gaming operated in all nine (9) provinces; Goldrush Gaming operated in four (4) provinces; Grand Gaming in four (4) provinces; Crazy slots in three (3); Galaxy Gaming in 2 (two); and Pioneer Slots in 1 (one) province. Independent operators were operational in 4 provinces. A total of 15 805 LPMs were active throughout the country at the end of FY2023/24. The majority of LPMs were in KZN (21.4%) and Gauteng (18.8%). Several provinces reduced the number of active LPMs relative to the previous year; namely, Limpopo, North West, Northern Cape and Free State. There were 2 599 operational site operators throughout the country with most site operators in KZN and Gauteng.

The total value of GGR generated in the LPM sector during FY2023/24 was R4.1 billion. This is a -1.9% decline compared to the previous year. This amount represents 7.0% of the total amount of GGR generated by all gambling modes. The Western Cape accounted for the highest amount of GGR generated in the LPM sector at 22.7% followed by KwaZulu-Natal (21.6%) and Gauteng (19.4%). The total value of taxes/levies collected by PLAs from the LPM sector during FY2023/24 was R495.7 million. This amount represents 10% of taxes/levies from all gambling modes. LPM taxes/levies decreased by -1.2% relative to the previous year.