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South African Gambling Revenues Fall Sharply21 May 2002CAPE TOWN, South Africa – As reported by the South African Press Association: "Revenue earned by provinces from gambling, horse racing and betting has fallen sharply in the past five years, according to the financial and fiscal commission (FFC). "In its 2002 submission to parliament, the FFC said these earnings as a share of total own revenue had declined in general and were `expected to be zero for some provinces'. "`The advent of different lotteries that compete directly with gaming activities has resulted in a decline in activities such as horse racing and betting. "`Consequently, a number of racecourses have been closed, and hence the declining trend in revenues from this source." "The proportion of own revenue through taxes from these activities had dropped from about 8% in 1997/98 to an estimated 4% in the 2003/04 financial year, it said. "…The FFC said the tariffs paid to provinces were considered to be arbitrary, and there was a general lack of clarity on how they were calculated. "Another problem was a lack of organised financial reporting systems. "…Some casino understated the revenues they generated. "…However, it said the revenues should stabilise with time…" |