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Eastern Cape Gambling Licenses Bid

South Africa is in the process of legalizing all forms of gambling and those companies wishing to open casinos and other gambling venues need to request a license from the Gambling Board. The Gambling Board is currently in the process of examining five applications for licenses from operators who wish to open casinos in the Easter Cape, in South Africa.

Who will be the Lucky Winner of the Five Bidders for South Africa Gambling License?

Five bids have come in, in order to contend for two more gambling licenses still open in the province. Three applications were submitted for he Queenstown license, while two are competing for the bigger Mthatha license. South Africa, which is undergoing a process of legalizing and regulating most forms of gambling, has been examining license applications around the country.

Eastern Cape Gambling and Betting Board employees will not comment on the licensing process until the bids become publicly available in two weeks’ time. The Gambling Board Chief Executive, Gonza Mati has said that the licenses would probably be issued in February 2007. The Gambling Board had made it clear that it would only accept serious bids, and as a result put an huge fee of R200,000 per bid application.

The increased number of gambling licenses to be granted is expected to provide great revenue and financial activity for the area. The three existing casinos brought in R663m during the 2004/5 financial year, generating R46m in gambling taxes. The Eastern Cape gambling industry produced a gross turnover of R10,3 billion last year. The board controls the industry and makes sure that venues take no more than an eight percent profit margin.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.