LIMITED PAY-OUT MACHINES MARKET - A KEY FOR ECONOMIC DEVELOPMENT IN RURAL NORTH WEST

Kenny Monate Audit & systems Manager

The rural parts of the North-West Province stand to benefit from a roll-out of Limited Pay-Out Machines “LPMs”. Audit & System Manager of the North-West Gambling Board Mr Kenny Monate says the market of LPMs in districts such as Bojanala in the Province’s platinum belt shows the signs of saturation. The Gross Gambling Revenue “GGR” trend analysis shows that the opportunities lie in the Far West of the province, particularly the Dr Ruth Segomotsi Mompati District Municipality.

 

“The GGR of Bojanala was the highest in the 1st four years when we started the roll out of the LPMs due to the fact that the Operators preferred and placed more LPMs in the district (Bojanala) which is housing in average 56% of the LPMs Kenny Monate Audit & systems Manager      currently operational than the other three districts

(Dr Ngaka Modiri Molema at 15%, Dr Ruth Mompati at 7% and Dr Kenneth Kaunda at 22%)….

 

“This is primarily because Bojanala is the economic hub of the province. Although the GGR is still high (sitting at 57% in average) we have noted a decline in GGR per Machine (LPM) from 27% in 2015/16 (which was higher than all other districts) to 24% in 2016/17 Financial Year. The decline in GGR per Machine is due to the increasing concentration of the Machines in the District” Mr Monate said.

 

On the contrary the GGR per Machine in Dr Ruth Mompati has increased drastically by 35%, from 24% in 2015/16 to 30% in 2016/17 Financial Year (which is now higher than all other districts).  This is due to the lesser number of Machines and increased demand for gambling in the district. The statistics show that there is still an untapped market in Dr Ruth Mompati.

 

Dr Ruth Segomotsi Mompati is one of the economically depressed regions in the province. The district continues to grapple with issues such as unemployment, poverty and income inequalities. “The investment in the district coupled with the higher profit margins will surely bring relieve and benefits to the locals through various means such as employment opportunities and being the actual owners of these operations” Mr Monate said.

The district also continues to grapple with the scourge of illegal gambling operations. And this has robbed the province of better economic prospects particularly in the collection of taxes and levies. Mr Monate believes that the roll-out will assist to suffocate unscrupulous forces in the industry.

 

“People must now begin to look at this market and take it away from illegal operators. And as the Board we will be strengthening our efforts root to out the mushrooming of illegal gambling operations so that the new investors are able to reap the rewards of their investments.”