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. Seven operators are operational in KwaZulu-Natal; six in
North West; five in Gauteng; three in Mpumalanga and Eastern Cape; two in Northern Cape, Western Cape, Limpopo and Free State as at 31 March 2019. NCEMS is a centralised LPM monitoring and evaluation system operated on a contract basis by Route Monitoring, located in Johannesburg, Gauteng.   

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 sector is largely a function of the roll-out of machines, as shown in the graph below. The number of operational LPM site operatorsas well as the installed LPMs and active LPM for FY18/19 is illustrated on the table below.   

The LPM sector maintained a positive growth trend with growth in the gross gambling revenue (GGR) generated by the sector increasing annually as illustrated on the graph below. GGR increased by 14.1% between FY15/16 and FY16/17, followed by an increase of 9.8% between FY16/17 and  FY17/18, and increased by 13.2% from FY17/18 to FY18/19. The number of licensed active LPMs increased by 2.1% from 11 502 (FY16/17) to 11 744 in FY17/18, and increased by 11.0% from FY17/18 to 13 034 in FY18/19 as a result of increases in almost all provinces except Northern and Eastern Cape.   GGR generated in the LPM sector represents 10.9% of the total amount of GGR generated by all licensed gambling modes in FY18/19.




Variable

Quarter 1

Quarter 2

Quarter 3

Quarter 4

1 Apr – 30 Jun 2018

1 Jul – 30 Sep 2018

1 Oct – 31 Dec 2018

1 Jan – 31 Mar 2019

Operational LPM site operators

2 327

2 311

2 387

2 347

LPMs Installed

12 761

12 733

13 911

13 766

Active LPMs

12 789

12 778

13 409

13 034







       

 











   




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