As one of the many countries around the world to be considering updating or formulating gaming regulations, Botswana already has a thriving casino industry that grossed 81 million Pula ($18.76 million) last year from the eight casinos. Whilst this amount is cast into the shade by South African revenues, let alone the state of Nevada, it represents income of $1.85 million to the government.

Since achieving Independence in 1966, Botswana has a long record of political and social stability. Economically the country benefits from tourism, diamonds and beef. The Okavanga Swamps and the Kalahari Desert are great tourist draws, beef is sold to the European Union in large quantities, and Botswana is one of the largest world exporters of gemstone diamonds.

The Gabarone Sun Casino, a property in South Africa’s Sun International portfolio, was the first casino to be opened in Botswana. It remains the largest and most profitable in the country. There is a worldwide trend towards slot machines’ revenue being greater than tables’ revenue, but the Gabarone Sun has had better results from their tables recently, and the cause of a 12% revenue drop is the lower income from slots.

Sun International’s Marang Casino in Francistown shows a positive trend likely to be reflected in next year’s performance, but their Meneteng property in Selebi-Phikwe had poorer results than the previous year. This was attributed to the downturn in the local economy and consequent decline in disposable income for its clients.

The two Admiral Casino properties, in Francistown and Selebi-Phikwe, have both improved performances over the three months to end of March 2004. This is following improvements to both casinos and the introduction of new slot machines. Kings Casino in Lobatse has a 5% reduction in gaming revenues compared to the previous year, and has not improved its performance over the first three months of 2004.

Peermont Global’s Grand Palm Casino in Gabarone is Botswana’s second biggest casino revenue earner. However, it also suffered from the economic climate and did not achieve the 11% growth of the previous year, although the trend is again positive. The Teemane Casino in Jwaneng has been open since February 2003. Commencing as a slot machine venue, it added American Roulette and Blackjack three months later. Total revenues for the 14-month period to March 2004 were P2 million ($460,000).

According to the Casino Control Board’s report, it has considered four further casino applications. The Casino Act and the Presidential Directive of 1990 restricts licences to international standard hotels. It also states that the Board has started to implement some of the recommendations in the Botswana Gaming and Gambling Policy.

At the end of September, the Minister of Trade and Industry, Joseph Nkate, said that the ministry was currently working with the Attorney General’s Chamber to develop the gaming and gambling legislation. The draft Bill is scheduled to be presented to Parliament for discussion during the February 2005 sitting.

© Copyright 2004 CasinoCompendium



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