The Western Cape government’s coffers will get a welcome R40m boost to pump into service delivery initiatives when the province’s new casino “sin tax” comes into effect.
|||Cape Town - The Western Cape government’s coffers will get a welcome R40 million boost to pump into service delivery initiatives when the province’s new casino “sin tax” comes into effect on Sunday.
Western Cape MEC of Finance, Economic Development and Tourism Alan Winde said the money would be spread across government departments for increased services to residents where it was most needed.
There are five casinos in the province: GrandWest, Caledon Casino, Casino Mykonos, Garden Route Casino and the Golden Valley Casino in Worcester.
Winde said the increased casino tax follows the amendment to the provincial Gambling and Racing Act tabled in the provincial legislature in March.
He said the amendment to the act, which governs gambling and racing in the province, sought to increase the rate of tax payable by holders of casino operator licences by a 2 percent flat tax rate increase on each of the six tax bands.
The other issue addressed in the amendments was the relocation of one of the outlying casinos to the Cape Town metro.
Winde said the two issues had been separated following consultation with the public. “Public hearings regarding the amendments were held in front of the provincial standing committee on Finance in June,” he added.
Winde said comments on the draft amendments were received from a handful of interested parties, mostly from the casino industry.
And proposed plans for a second casino in Cape Town had also moved a step closer.
He added while casinos did generate jobs and increased revenue for the economy, other factors needed to be taken into account too.
“We will consider all the information before we make a responsible and informed decision.”
Sun International chief executive Graeme Stephens said the potential to relocate a second casino licence to Cape Town continued to be the subject of debate in the Western Cape.
“The group does not believe that there is any significant untapped gaming revenue in the region, and certainly nothing that could justify the establishment of another large casino.”
Weekend Argus