Gambling Projects | Stratecon

Gambling Market Assessments

Entering a gambling market, particularly for casino operators, is a high risk business. The up-front capital expenditure can be very high and the casino needs to be configured to the correct size for the market. Too small and there would be overcrowding. Worse from an operator perspective is for the casino to be too large. This poses both the threat of bankruptcy, on the one hand, and reduces the casino experience of the punter. Casino operators need to ensure that a proposed casino is the right size for the market.

In the mid-1990s, with the liberalisation of gambling in South Africa, prospective operators needed to ensure they had the correct market size information. This was particularly challenging in the province of Gauteng because there was the prospect of six casino licences being issued in a geographically constrained area. Members of StratEcon created an algorithm that was able to correctly size potential casino markets, not just for an individual casino but for multiple casino configurations. This algorithmic approach would also advise Gaming Authorities as to whether a casino market is oversaturated.

Completed Projects

Review of Western Cape Provincial Gambling Policy towards the development of a White Paper. For the Western Cape Government Provincial Treasury, 2020/21.
Assisting the Western Cape Government Provincial Treasury in responding to comments on the draft 20th and 21st gambling legislation amendments, 2020.
Assessment of the impact of moving a second casino licence into Cape Town. For Sun International 2010 & 2014.
Assessment of market size and economic impact of the relocation of Morula Casino to Menlyn Main in Tshwane. For Sun International, 2013/14.
Determination of the potential market size of a casino located at Hartbeespoort Dam, Gauteng. For Peermont 2010/11.
Determination of the potential economic impact of moving a casino license from Mmabatho to Hartbeespoort Dam. For Peermont 2010/11.
An assessment of the potential market size of a casino located in Burgersfort, Mpumalanga. For Peermont 2010.
An assessment of the economic contribution made by the casino industry since the liberalisation of gambling in South African in 1996. For the Casino Association of South Africa, 2009.
Assessment of the macroeconomic impact of legalised gambling in the Eastern Cape. Done in association with TNS Research Consultants for the Eastern Cape Gambling and Betting Board, 2009.
Estimate of the contribution that Sun City has made to the provincial and national economies, 2009. For Sun International. Updated 2011, 2013 and 2014.
Assessment of the potential market size of a hotel and casino located in Richard’s Bay, KwaZulu Natal. For Peermont Ltd, 2009.
Assessment of the potential market size of a casino located in Lagos, Nigeria. For Sun International, 2007.
Assessment of the potential market size of a casino located in Burgersfort, Mpumalanga. For Sun International, 2007.
Assessment of the potential market size of a casino located in Kuruman, Northern Cape. For Sun International, 2007.
Assessment of the economic sustainability and economic impact of SunWest (Pty) Ltd 2007/8 and 2008/9. This is the holding company of the GrandWest Casino, Table Bay Hotel and part owner of the Cape Town International Convention Centre.
Advisor to Maguga Leisure Resorts (Pty) Ltd on the potential market size of a hotel and casino located at Maguga Dam, Swaziland 2007.
Assessment of the economic sustainability and economic impact of the Boardwalk casino and entertainment world in Port Elizabeth, 2007/8 and 2008/9. Prepared for Sun International.
Assessment for Sun International to determine the contribution that Sun International has made to the Zambian economy and tourist industry, 2006.
Strategic advisor to Sun International UK on bidding for a resort casino in Moscow, Russia 2006/7.
Strategic advisor to Sun International UK on bidding for a series of regional casino licences in the UK following the liberalisation of gambling in that country, 2005/6. This work involves both formal financial feasibility modelling and micro and macroeconomic impact assessments.
Due diligence for Investec Bank of the potential gambling market at Village Green in Durban 2001.
Due diligence for FBC Securities and Board of Executors of the potential gambling market for Komani Lodge Casino in Queenstown 1999.
Due diligence for FBC Securities and Board of Executors on the potential gaming market for Sondelani casino in East London 1999.
Due diligence for Investec Bank on the potential gaming market for Pinnacle Point Casino in Mossel Bay 1998-9.
Due diligence for Investec Bank on the potential gaming market for Adventure World Casino in Central Durban 1998-1999.
Advisors to Sun International on the economic impact of the proposed Port Elizabeth casino, 1998-9.
Advisors to Afrisun KZN on the economic impact of the proposed Aquarius and Sibaya casinos, 1998-9.
Advisors to SunWest on the economic impact of the proposed Cape Town casino, 1997-8.
Advisors to Ozz Industrial on the impact of casinos on the Randburg Waterfront, 1997.