If you have ever fancied becoming an Eastern Cape gambling operator and giving our local casinos a run for their money by launching a business with the potential turnover of R1-billion over 15 years then listen hard.
The Eastern Cape Gambling and Betting Board (ECGBB) is calling for applications for two Route Operator licences to operate Limited Payout Machines (LPMs) throughout the province from next year.
Since being introduced several years ago, the 2c, 5c and 10c limited payout machines have gained in popularity both with the public and owners of pubs and corner shops.
Punters like them because they have genuine payouts and they have found favour with retail outlets because the machines draw customers who then spend money on other products.
Port Elizabeth’s Brewmaster pub owner Lesley Crowe has five LPMs and says not only have the machines drawn in extra business, but the payouts have been “very generous”.
In East London, Vincent Tattersalls manager Trevor George said the LPMs have proved “extremely popular” and drawn in customers who would not normally bet on horse racing.
Other small business owners say having the LPMs in their stores often means the difference between an average turnover and a good one.
The licences, valid for 15 years from April 2012, have the potential to generate turnover of more than R1-billion over this period.
ECGBB chief executive officer Mabutho Zwane, said besides creating employment, the LPM industry brought in gross gaming revenue (GGR) of around R100m a year and resulted in about R10m in gambling taxes being collected on behalf of the province.
Only two route operator licences would be granted and each successful applicant would be allowed to operate a maximum of 1 000 machines throughout the province.
Zwane said the ECGBB issued its first route operator licences in October 2004. Currently there is just one route operator for LPMs in the province.
“We have very strict criteria when selecting route operators, the most important being empowerment and community opportunities, as well as the economic, social, financial and management strengths.
“We are looking for the best applicants who will deliver a quality service to their clients and community in general,” he said.
Further information can be obtained from the East London-based ECGBB on 043 702 8300.
Alan Straton
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