Land-Based Casinos Effect on Real Estate Industry in South Africa

South Africa’s rich history is made even more enjoyable by its laid-back, multi-ethnicity, and prime tourist destinations. And although some describe the country as a developing country, South Africa has a desirable standard of living that makes it one of the best countries to live on the African continent. Better still, its real estate industry offers many options to locals looking to explore the country’s breathtaking scenery in Sun City and Cape Town or the urban marvels of Johannesburg.

One of the major attractions of living in South Africa is the multitude of avenues for entertainment and leisure. One such avenue is the land-based SA casino that taps into the country’s rich gambling culture. Indeed, gambling is such a big deal in South Africa that the SA casino industry significantly impacts the country’s social, economic, and real estate sectors, directly or indirectly.

That is why every South African looking to buy or rent property in South Africa needs to understand how that property is affected by the country’s rampant brick-and-mortar casinos. This guide will give the reader the vital information necessary to make informed decisions on how SA casinos affect the local real estate industry. Before diving in, we shall explore the current state of the SA casino and real estate industry. Keep reading.

The South African Real Estate Industry

The South African real estate industry hit the ground running right after scaling over the market crash that threatened its existence in 2008 and 2009, and it hasn’t looked back since then. Not even the COVID-19 pandemic has been able to stunt its growth over the years.

Recently, residential and industrial real estate has seen significant investments as high as billions of rands. Some residential properties in big cities like Cape Town and Johannesburg are priced at millions of South African rands, which have continued to increase.

The post-COVID-19 period has also significantly improved in the commercial real estate sector. Rental rates and prime yields plummeted during the thick of the pandemic as a significant number of office space was empty, and property owners had no choice but to reduce their rates. But the real estate industry has shaken everything off, especially the residential sector. According to the First National Bank (FNB), house prices in South Africa will increase by 4.2% in 2021.

There are projections that the residential sector of the South African real estate industry will expand at a CAGR of greater than 9% between 2022-2027. This growth can be traced to increased economic opportunities, remote work trends, enhanced awareness of the wealth-making potential of properties, favorable interest rates, and a potential improvement in rental growth.

SA Real Estate Industry Trends in 2023-2027

Consequently, the South African real estate industry might experience the following trends in the future:

Semi-Migration

There is expected to be semi-migration and reverse semi-migration in the future due to more buyers who can afford to move to a new city or province. Many of these buyers seek to implement lifestyle changes, including location changes. It is expected that as much as 20% of these buyers will move to coastal areas like the Western Cape province.

There is also expected to be a partial return of buyers at the upper end of the housing market. Many return buyers opt for residential estates that offer security and a “posh” lifestyle.

An Increasing Demand for Sectional Titles

Sectional titles refer to undivided properties like townhouses, flats or apartments, and duet houses. Real estate agents project that more people in South Africa will go for sectional titles instead of freehold properties mainly because of the increased security, affordability, and communal feel that this kind of real estate offers them.

Many South Africans have opted for sectional title properties in the past few years. But it is believed that this interest will be deepened until they consist of at least a third of all property sales.

Alternative Financing

More South Africans will opt for alternative home financing for their real estate properties. For instance, some individuals are expected to pool resources to cope with rising living costs. So there is likely to be more extended families living together in properties.

The Industry Will Be Even More Competitive

There is stiff competition in the SA real estate industry. Interestingly, this competition is expected to be even more competitive with the influx of more indigenous players into the industry. Property development is expected to continue to increase even if there might be the risk of an overflow of properties.

Sustainable Options Might Increase

Eco-friendly housing is a big trend worldwide, which might catch up in the South African real estate industry. More South Africans are expected to opt for residential properties that provide convenience, sanctuary, and sustainability.

The industry may experience an increased demand for smart home product ownership with full home automation options and alternative energy supply, among other green features.

Part of this eco-housing trend is the concept of mixed-use micro units that promote minimalist living among homeowners. One of the forerunners of this kind of real estate option is the Uxolo project in Cape Town, with housing units ranging from 24 square meters to 40 square meters.

Should You Buy or Rent Residential Property In South Africa?

There are about 6.7 million residential properties in South Africa, so there are no shortages of residential properties to buy or rent in South Africa. So whether it’s flats to rent in Durban or buying a stately townhouse in Western Cape, there is enough to go around. Nevertheless, the choice of renting or buying a residential property is always a big decision among potential homeowners.

Renting a property allows one to explore different neighborhoods and better understand the South African property market. Although nothing beats living under one’s roof, renting is often a cheaper, straightforward process with fewer hassles, especially if the property is rented informally.

On the other hand, the home-buying process is a different ball game. Besides the property’s price, there are additional costs when buying a home. The transfer duty depends on the property’s value and must be paid within six months of the purchase date. There are also legal fees like the bond registration fee, transfer attorney fee, and the processing fee for processing the documents that can’t be avoided.

In a nutshell, renting a residential property offers freedom and flexibility as you can continuously pursue rental arrangements and options that best suit you. On the flip side, buying a home provides some stability and a veritable asset with the potential to become a stream of income. So deciding on the best option between buying and renting is down to

• Financial stability
• Individual goals
• In-depth knowledge of real estate

There are nine provinces in South Africa, and so the cost of renting a residential property will vary across regions. And within provinces, these costs will still be influenced by the property type and location. For instance, it costs more to rent a house in Cape Town than in Johannesburg or Durban. However, rental costs fluctuate with market trends, and cost changes can occur anytime.

The same rule of cost fluctuation per location also applies to buying a residential property in South Africa. The only difference is that a satisfactory credit record is required before the home-buying process can be initiated. The good news is that taxpayers who buy a home for primary residence can get up to R2 million capital gains exclusion if they opt to sell the property in the future.

That said, here is a look at what it costs to rent vs. buy a residential property in provinces in South Africa as of Q4 2022:

Types of Residential Properties In South Africa

Here are some of the more popular residential properties available in the country:

Studio apartments: This kind of property has a bathroom, a kitchenette, and a shared bedroom/lounge.

Flats: This is the most common residential property in South Africa. Depending on the size, flats come with varying numbers of separate bedrooms. Some apartments come with a balcony, a (garden space that could be private or shared amongst tenants) and parking spaces or garages.

Townhouses: A townhouse could either be a bungalow or a duplex with two floors. Regardless of the type, townhouses could have a garden and parking space.

Cottages: Also known as a separate entrance in South Africa, this property is designed as a building within a larger building. In some cases, it is a separate building within the premises of a bigger building. Regardless of its form, a cottage has a different entrance from the main entrance.

Mkhukhu: This property, also known as a shack, is an informal type of building that is essentially a tiny shelter made from corrugated iron, wood, or foraged materials. Mkhukhu often has simple designs, but they can be anything from a single-room building or a multi-bedroom building with or without facilities.

Detached houses: This residential property is usually a family-sized home at least one story high. It has at least two bedrooms and almost always comes with a parking space.

Small-holdings: This residential property has enough space to contain a farmhouse surrounded by land.

The South African Gambling Landscape

The South African gambling landscape has a long history of anti-gambling legislation that both the Dutch and British colonialists implemented. At each point of their control over South Africa, all forms of gambling were outlawed. The Dutch initiated anti-gambling laws that continued throughout the Apartheid regime.

Despite these laws, the locals created their illegal private casinos and card clubs at the risk of prosecution by the authorities. And so there were so many of these kinds of casinos littered around the different territories in the country.

Upon the institutionalization of democracy in the country, the government at the center sought to exploit the economic potential of over 2,000 illegal gambling properties found across provinces in South Africa. And so gaming laws were initiated.

The Regulation of Gambling Across South Africa

By 1996, the National Gambling Act was enacted so South Africans could operate and play at a gaming establishment. As the years rolled by, South Africa soon became a hub for many licensed land-based casinos.

The National Gaming Board was set up with nine provincial boards within its jurisdiction to regulate the South African gambling industry. By 2004, a Gambling Act was initiated as part of the government’s efforts to regulate the rapidly growing field of online gambling.

However, many gambling activities were still illegal in South Africa. That was because the National Gambling Act of 2004 still outlawed the offering and participation in online “interactive games” like slots, card games, and other games of chance.

By 2008, there were some changes, and the National Gambling Amendment Act was introduced to legalize online gambling at casinos and regulate South African online casinos. As of the time of writing, this Act is yet to be implemented, and only locally licensed land-based SA casinos are allowed by law to operate.

2018 ushered in a change in South African gambling laws under the National Gambling Amendment Bill 2018. These changes reinforced bingo, casino, and sports betting regulations, installed the NGB as the National Gambling Regulator, illegal dog racing, and controlled gambling advertisements.

So South African gamers are only permitted by law to bet on sports and horse racing in physical or online venues authorized by any of the country’s nine provincial licensing authorities (PLAs). That said, operators of physical and online casinos South Africa must have a local license to own gambling resources. Thankfully, there is a wide range of reputable brands to choose from.

Today, South Africa is known as Africa’s largest gambling market. The country had estimated gross gaming revenue of about $1.9 billion by 2018, projected to exceed $2.3 billion by 2023. It is safe to say that almost half of Africa’s gross gaming revenue comes from South Africa.

The rapid growth of the South African gaming space can be traced to the country’s rich GDP and the growing affinity for gambling among the average adult South African. A study conducted by the National Gaming Board in 2006 showed that as much as 96.9 % of South Africans participated in the national lottery. The study also revealed that 27.7 % of the population played slot machines, another 22.7 % enjoyed scratch-off lottery tickets, and another 11.5% placed wagers on horse races.

Other gaming options South Africans explore include sports betting on golf, football, rugby, and cricket. Indeed, sports betting generated up to 21.3% of South Africa’s gambling revenue in 2018, totaling $405 million. Gambling activity is so ingrained into the South African economy that many businesses across its provinces are built to serve local gambling needs.

That said, illegal forms of gambling still thrive in South Africa. Online casinos are one of the unauthorized yet increasingly popular forms of gambling, even though legal sanction applies. That’s because South African law stipulates that winnings from unlicensed South African online casinos are deemed illegal, and facilitators of online gambling activity may be fined up to R$10,000,000 or get up to 10 years of prison time.

Thankfully, the illegal status of South African online casinos might change soon. Leading South African casino operators such as Tsogo Sun are lobbying the South African government to pass legislation that allows online casinos to become legally recognized as part of the gambling industry. If online casinos South Africa are legalized, gamblers in South Africa can enjoy the best of both worlds as traditional casinos will offer online versions of their casino games.

The Rise of SA Casino Online

Despite the gray status of SA casinos online, there is a steady rise of online casino SA players in the country. And that’s because there are loads of reputable international real money online casinos available to players in South Africa.

These offshore SA online casinos are open round the clock, provide cross-platform support, and can be accessed anywhere in South Africa. The best part is that South African online casinos offer more games, bonuses, and promotions than traditional SA casinos.

Here is a list of South African online casinos to enjoy fun games in South Africa (in no particular order):

Mansion Casino

Mansion Casino is licensed in Gibraltar. The SA casino online is quite popular in South Africa because of its impressive multi-vendor game library. Like most of the SA online casinos on this South African online casinos list, it supports ZAR, a live dealer game lobby, and loads of responsible gaming features.

New gamers to the online casino SA can explore any of its two welcome bonus options. The standard welcome bonus offers a 100% match bonus on the first deposit. The second option is the 50% high roller match bonus.

Mansion Casino doesn’t support crypto or sports betting. Thankfully it offers gamers 24/7 customer support via email, live chat, and even telephone.

Thunderbolt Casino

Thunderbolt Casino is licensed by Curacao and mainly caters to the South African iGaming space. So, although this gaming site doesn’t offer live dealer games or sports betting, it is a mobile-optimized site that supports Bitcoin and InstantEFT.

Thunderbolt Casino also supports ZAR and awards first-time gamers a generous welcome bonus of R10,000. SA casino online players who run into any issue can get support via toll-free phone support.

Yebo Casino

“Yebo” is Zulu for “Yes”, and the spirit of the Yebo Casino captures all of the enthusiasm and optimism associated with the word. Punters on the site enjoy an extremely mouthwatering welcome bonus(R12,000), VIP programs, and weekly cashback. The site also supports Bitcoin and ZAR, so players have different options to explore.

Sadly, although Yebo Casino has an impressive game library, it only supports Realtime Gaming games. It also doesn’t support live dealer games, nor does it offer sports betting options. They make up for this with round-the-clock customer support accessible via live chat, phone, or email.

Springbok Casino

The Springbok Casino is extremely popular among online casinos South Africa. Besides the fact that it is named after the country’s indefinite antelopes and supports ZAR, Springbok Casino made this South African online casinos list for many good reasons.

It is a mobile-optimized casino that offers both English and Afrikaans versions. It supports Bitcoin and offers new gamers a bonus of up to R11,500. While Springbok Casino has attained the best “High Roller” casino, it features a single-vendor game collection limited to RTG games and does not have live dealer games. It does not offer sports betting but offers players customer support via live chat and email.

Punt Casino

Punt Casino is licensed by the Curacao eGaming Commission and boasts a user-friendly interface. Online casino SA gamers get a welcome bonus worth R10,000 and daily cashback. They can also use Bitcoin and explore a wide range of RTG games (up to 270 games).

One of the downsides of this SA online casino is that it doesn’t have a dedicated app. Like other entries on this South African online casinos list, there are also no live dealer games. There is also no telephone support, but gamers can access email and live chat support.

Land-Based Casinos in South Africa

The South African land-based casino industry has come a long way, as they were illegal until around 1996. The industry has evolved over the years, and today, most of the gambling properties in Sub-Saharan Africa are located in South Africa. And that’s because, as one of the many legal forms of gambling in South Africa, land-based casinos have become one of the largest employers of labor in South Africa.

The South African Gaming Commission claims that at least 300,00 people are employed directly or indirectly in the country’s gambling industry. And South African casinos are responsible for hiring a significant number in that figure.

Interestingly, despite the benefits of gaming on South African online casinos and the stiff competition they offer, the traditional SA casino industry continues to grow in bounds and leaps. As of the time of writing, there are at least 47 licensed land-based SA casinos across provinces in the country.

The oldest of these casinos is the Tusk Mmabatho Hotel Casino Convention Resort, situated in the North West Province. At the same time, the Grand West Casino (located in Cape Town) is the biggest land-based gambling property in South Africa, with thousands of slot machines. Cape Town is often described as South Africa’s casino capital because it is home to as many as five primary casino resources. Johannesburg also comes a close second with several world-class casino establishments.

It is believed the land casino sector of the gambling industry will grow faster than other sectors in the economy. This sustained growth implies that more land-based SA casinos will spring up over time. Indeed, licensed and regulated SA casino properties can be found in these places in South Africa:

• Bethlehem
• Durban
• Brakpan
• Sun City
• Burgersfort
• Caledon
• Pretoria
• Empangeni
• Port Edwards
• Kimberley
• Klerksdorp
• Nelspruit
• Newcastle
• Pietermaritzburg
• Port Elizabeth
• Queenstown
• Bloemfontein
• Worcester

Gamers are spoilt for options when it comes to picking land-based SA casinos. And that’s because there are all sorts of gaming establishments that range from small private casinos to mega resorts that could easily compete with the best on the Las Vegas Strip.

Some of the services that South African land-based casinos offer include:

Gambling: This is the main attraction at South African land-based gaming establishments, and they have managed to maintain the highest standards when it comes to this. Regardless of the gamers’ budget, they are assured of exploring the best gaming options available worldwide. The bet limits are pocket-friendly, and punters are often treated as royalty.

Great Food: Gambling and good food go together, which is no different at South African land-based casinos. Casino restaurants are also a thriving business in South Africa because there are so many restaurants and bars in and around casinos that offer local gamblers local and intercontinental cuisine and drinks.

Family Entertainment: South African land-based casinos are more than just gambling facilities because they offer entertainment options for the entire family. So whether it is live artist performances, concerts, comedy shows, or even spas, there is enough entertainment for the families of gamers who play at these casinos. For instance, the Emperor’s Palace Casino in Johannesburg is said to have one of the biggest cinemas in the country. In general, land-based casinos in South Africa offer players an opportunity to create great memories with their families.

Golf: Golf is often seen as an exclusive game for the wealthy. And in line with the royalty status that many land-based SA casinos have accorded gambling, golf courses are fast becoming a feature at South African casinos. Some of these casinos already have golf courses that can easily compete with the largest golf courses on the continent.

South Africa’s Most Popular Land-Based Casinos

South Africa is a hub of land-based casinos that meet the highest international standards. Each province in South Africa boasts at least one top-notch gaming facility where punters can access various games.

Some of these establishments have taken things further by providing family-oriented entertainment. That way, gamers can visit these facilities with their families when they are looking to enjoy quality time.

Listed below are the commonest South African casinos:

GrandWest Casino and Entertainment

This is the largest gaming and entertainment establishment in Cape Town and South Africa. It is a family-oriented gamer paradise that boasts international-grade facilities designed to offer premium gaming options, leisure, and relaxation. Here are some of the things that GrandWest Casino and Entertainment World offer gamers:

• 1,714 smart card slot machines
• Blackjack
• Roulette
• Poker
• Baccarat
• Restaurants
• Ice-skating
• Ten-pin bowling
• An arcade
• A cinema

Sibaya Casino

The Sibaya Casino is one of Duran’s gaming delights that offers a great gaming experience. Players at this casino get to enjoy the following:

• Multiple table games
• Up to 48 live gaming options with different denominations
• 1,280 slot machines available
• Great dining options
• Bars
• Theaters
• Computer and arcade games

Mykonos Casino

Situated in Langebaan, Western Cape, Mykonos Casino was inspired by Mediterranean island aesthetics. Therefore, gamers often feel they are on the Greek island from where the casino got its name. The casino also has a pet-friendly, 60-unit hotel room that enhances the exotic experience.

Here are some of the things that the casino offers:

• Over 320 slots (including progressive games)
• Swimming pools
• Donkey rides
• A spa
• Tennis courts

Garden Route Casino

Garden Route Casino is located at Mossel Bay. It is designed for SA casino punters who love nice gaming establishments where they can hole up for the weekend.

Here are some of the services that it offers players:

• Non-smoking slot section with around 200 machines
• Smoking area with over 140 slots
• Poker
• Roulette
• Blackjack
• Live artist performances

Sun City Casino

This casino is arguably one of the biggest attractions of the Sun City Resort Casino Complex. It’s a palatial gaming establishment that offers its patrons exquisite round-the-clock gaming experiences and several other family-oriented attractions. Here are some of the offerings at the Sun City Casino:

• Smart Card technology
• 43 Casino table games
• VIP gaming
• 852 slots
• Video poker
• Game drives
• A water park
• Restaurants and Bars
• Live shows

Golden Valley Casino

The Golden Valley Casino is a family-friendly, intimate gaming establishment designed to cater to gamblers with varying gaming preferences and budgets. It offers:

• 220 slot machines
• Poker
• Roulette
• Blackjack
• A sports bar
• A restaurant
• Karaoke
• Live performances

Flamingo Casino

Gamers in South Africa who need an innovative gaming establishment that offers premium entertainment should explore Flamingo Casino. Here are some of the things that they stand to enjoy:

• Slot smartcard system
• At least 160 slot machines
• Poker
• American roulette
• Blackjack
• Live performances
• Great family-friendly restaurant
• Sports bar

Wild Coast Sun Casino

Wild Coast Sun Casino is another great South African land-based casino that promises gamblers a swell time. Here are some of its offers:

• Smartcard technology
• Over 540 slot machines
• Roulette
• Blackjack
• Poker
• A water park
• Restaurants
• Terraced bars

Time Square Casino

Time Square is a top-tier South African land-based casino that is one of the “prides” of Pretoria. This casino is a great blend of luxury and contemporary gaming trends. Here are some of its attractions:

• At least 1750 slot machines
• Roulette
• Poker
• Blackjack
• Baccarat
• Gym
• 8,500 capacity arena
• Great bars
• Swimming pool

Carnival City Casino

As its name suggests, Carnival City Casino in Brakpan provides an exotic carnival-like gambling experience. It offers:

• 1,400 slot machines
• Up to 57 table games
• A Portuguese restaurant

Emperor’s Palace Casino

Situated in Kempton Park, this gaming establishment was designed to give its visitors what it feels like to be an Emperor. It is a collection of different casinos that caters to different budgets and gaming needs that offers:

• Up to 850 slots
• Semi-private and private gaming areas
• Theaters
• Restaurants
• Bars

Gold Reef City Casino

What used to be a gold mine in Johannesburg has been converted into one of South Africa’s most popular casinos. Punters who visit its premises get to enjoy the following:

• 1,700 slot games, including state-of-the-art machines
• 50 gaming tables with various denominations
• Bowling
• An arcade
• A theater
• A cinema
• Great hotels

Emerald Resort and Casino

This SA casino is a unique blend of luxury gambling experiences and family-oriented fun. It offers:

• A four-star hotel
• More than 400 modern slots
• Blackjack
• Baccarat
• Poker
• Roulette
• A bowling alley
• A golf course

Thaba Moshate Casino

Although the Thaba Moshate Casino is not on this list because of its size, it is one of the most popular casinos in South Africa. Located in the heart of Limpopo, gamers who throng this casino enjoy:

• 150 slots with state-of-the-art multi-line video machines
• Poker
• Blackjack
• American Roulette
• Show bar
• Live entertainment

The Rise of South African Gaming Properties

The COVID-19 pandemic took a toll on land-based casinos in South Africa as forceful closures were implemented as part of safety precautions. To make matters even more interesting, many South African gamers discovered the benefits of online casinos in South Africa and thronged to them during the lockdowns. At the time, it seemed as if the land casino industry was done, especially with the news that some casino owners were putting up their gaming properties for sale.

Fortunately, the lockdowns were called off, and many SA casinos’ doors were soon opened to customers. And despite the innovations adopted by South African online casinos that sought to recreate the environment and ambiance of land casinos, there has been a steady demand for brick-and-mortar gambling.

The sustained growth of land-based casinos in South Africa post-pandemic can be attributed to the three factors below:

1. Strong Links With the Tourism Industry

The South African land casino industry is intertwined with its tourism industry. Most of the most popular land casinos in South Africa are around the biggest tourist destinations in the country. Some of these casinos even appropriate themes from these destinations into their establishment.

Besides providing top-notch gambling services, these casinos also offer international standard facilities and services that keep tourists visiting year after year. Sun City Casino attracts hundreds of thousands of local and international tourists yearly, thanks to its vast family-friendly casino resort.

2. The Thrill of First-hand Experience

Secondly, as great as VR and live online casinos are, they can never wholly simulate the thrill of excitement and competition or the throes of loss that permeates the atmosphere of land casinos. What SA online casinos offered in terms of convenience and increased gaming options, land casinos make up for with glamor and luxurious experiences in real-time. Few online casino offerings (if any) can beat gambling for real money with bundles of Rand notes in luxuriant VIP rooms and hospitality services fit for royalty.

It is experiences like this that the best land casinos offer their patrons, reinforcing that land-based casinos will never go out of style anytime soon.

3. Economic Impact

There is another angle to gaming real estate’s rise across South African provinces. The casino resort industry is a huge money spinner for the South African economy as it generates GGRs that run into billions of rands.

There are positive ripple effects associated with a thriving land casino industry, and the central government has decided to leverage this. One of the most obvious is traditional casinos’ annual tax revenue. Since these land casinos provide such huge amounts of income and can be relatively controlled via policy regulations (unlike South African online casinos), they enjoy more acceptance from the government than their online counterparts.

How South African Land-based Casinos Affect Local Real Estate Markets

There is a long-standing interdependence between South African casinos and local real estate markets. However, the South African real estate industry largely depends on the constantly changing market forces of demand and supply. So it is always difficult to project the future of real estate because the value of real estate keeps rising and falling.

In a sense, dealing in real estate is similar to gambling on SA online casinos, as very little is known. Real estate experts often have to make informed guesses based on observing market trends. They then make decisions that also come with significant risks.

One thing is for sure, though. Land-based casinos contribute to the local economy and tourism to a large extent, and they have government backing, hence the efforts at regulation. These gambling properties are world-class gaming establishments offering 5-star or 4-star accommodation and entertainment complexes. So naturally, they need large expanses of real estate.

When the increasing number of landed casinos in South Africa is factored into the real estate needed, it becomes evident that land-based casinos have some impact on the local real estate industry. Naturally, the more popular casinos mainly boost the local economy of the places where they are situated and can increase property value.

Players (buyers and property owners) in the local real estate industry know this fact, and this understanding informs their decisions.

Be that as it may, real estate experts are still divided on the effect of land casinos on real estate markets. To some real estate experts, these casinos have positive ripple effects on the market, and to others, land casinos adversely affect the local real estate industry.

So here is a look at both sides of the coin.

The Positive Effects of SA Casinos on The Real Estate Industry

The South African gambling industry and SA casinos offer many benefits to the real estate markets in South Africa. Here are some benefits:

Increased Real Estate Investment Potential

Economic boost is noticeable in regions where physical gambling properties are established. It has already been established that South African casinos increase local employment rates since a lot of hands are required to handle the day-to-day operations of the establishment.

Besides the casino employees, job opportunities exist for people in industries aligned to the gambling industry, like the accounting, security, and hospitality niches.

The implication is that there will be a demand for industrial and commercial real estate property in the environs where a land casino is situated. Commercial and industrial properties stand a chance to increase in value if such properties offer services to local casinos. Properties suitable for financial institutions, entertainment, and recreational spaces, private security outfits, and park management, for instance, could be in demand as there might be business opportunities to provide these services.

Consequently, the locale becomes open to attention from the real estate market. Depending on the location, real estate property value increases as investors always look for the next best deal.

Local Tourism Boost

Most South African casinos have become leading tourist destinations in South Africa. Casinos like the Sun City Casino and the Gold Reef Casino, among others, have the potential to attract droves of tourists every year. That’s because, besides the excellent gaming experience these SA casinos offer, there are tons of tourist attractions to be explored too.

A locale with prime, unlimited tourist potential is a real estate investors hot zone, and it’s only a matter of time before the area starts to attract more property developments to cater to the large number of tourists that visit it.

Potential Boom in Rental Properties

Now, while commercial and industrial real estate properties may experience a significant increase in demand, rental properties experience the highest order. And that’s because rental properties close to new casinos tend to benefit greatly.

For instance, many workers will work on the site when a land-based casino is being built or renovated. Some of these construction workers at the casino site would love to cut transport costs if they could find reasonable accommodation nearby. So there will be increased demand for residential rental property for these workers, albeit temporarily.

Another way rental properties can benefit from nearby casino properties is from the casino’s employees’ housing needs. Popular land casinos have many employees who keep the place running. Many of these employees would prefer to rent a residential property close by for as long as they work in the casino or any associated business.

There is also the class of gambling enthusiasts and tourists who might rent residential property on short-term arrangements. For this class of renters, paying short-term rent is more affordable than paying for hotel accommodation that might be pricey or having to cope with travel costs.

The increased demand for residential properties by casino staff led to a better appreciation of landed properties around the area, netting more profit for land and homeowners.

Improved Infrastructure

The South African gambling industry generates a lot of revenue for the South African government. These huge tax returns enable the government to build more infrastructure projects like great roads, among other things.

One of the biggest selling points of many real estate properties is the level of infrastructural development around the area. For example, quality roads mean a site is easily accessible by vehicles. So the South African real estate market benefits from better infrastructure that directly or indirectly increases the property’s value.

Downsides of South African Casinos on The Real Estate Industry

Brick-and-mortar casinos in South Africa have been credited with increased employment rates, revenue generation, and several other economic and social benefits. But it’s not all bells, whistles, and billions of rands with these casinos.

There are also downsides to having land casinos in any area. Here are some of those downsides

Social Costs

There has always been some furor about introducing casinos to some locations. That’s because casinos do business out of gambling, and gambling has always been associated with social vices like addiction and low productivity. In most cases, unregulated casinos are hubs for criminals who use these casinos as avenues to launder money.

So, for the most part, having land casinos in residential areas is said to have a negative social impact. Most people believe that establishments that promote and glamourize gambling activities can send the wrong messages to impressionable young people. And although most reputable casinos promote responsible gambling, some South Africans have reservations about buying or renting a property close to an SA casino.

Neighborhoods with casinos attract a lot of gambling enthusiasts and fun seekers who flock to and fro, sometimes at odd hours. So, those premises are always busy and noisy from vehicular and human movements. Having many boisterous people around and cars constantly honking at odd hours might be a turn-off for some people looking to buy residential properties, regardless of the benefits and pricing of such properties. So, the land around those places might not be suitable for residential purposes, leading to low housing costs.

Inflated Rental Prices

There is also concern about the inflation of rental properties’ costs to take advantage of short-term renters. Therefore, renters and buyers might find themselves paying inflated prices that might not be at par with the property’s current value.

Large and popular casinos temporarily and permanently attract people to a locality. This could pressure the community’s infrastructure and take a toll on the value of the local real estate market.

What Does Growth of South African Casinos Mean For The Real Estate Industry?

One way that land casinos optimize the real estate market is to create multi-purpose gaming establishments that offer more than just gaming opportunities. These days, South African casinos are more than just licensed spaces for gambling. They offer much more.

It is a growing trend to find casinos that serve as a one-stop location for gambling, family entertainment, corporate and social events, tourism, hospitality, and even sporting competitions. There is little that can’t be done at casinos like GrandWest Casino and Entertainment, Time Square Casino, and Emperor’s Palace Casino, to mention a few.

The rationale behind this trend is to diversify the use of landmass casinos are built on. It serves as a gambling hub while providing other essential services.

For the most part, the more popular gaming establishments can create multiple revenue streams:

• Gambling: They offer extensive gaming options to suit gamblers with different budgets and gaming preferences.
• Entertainment: They also provide great opportunities for entertainment, like live shows, cinemas, and game arcades, all accessed by paid tickets.
• Hospitality and Tourism: A good number of South African casinos have hotels and restaurants of international standards. Gamers and non-gamers can access luxurious dining and accommodation services as long as they can afford them.
• Commercial Purposes: Some casinos, like the Time Square Casino, have arenas and conference halls with large capacities that are often rented or leased for corporate and social events. Using casinos for secondary purposes, like restaurants, hotels, sports, and recreational facilities, leads to efficient usage of real estate and socio-economic development.

Verdict on South African Casinos Effect on Real Estate

Brick-and-mortar casinos greatly benefit every sector of the South African economy since they generate additional revenue that leads to infrastructural and sociology-economic development. But one of the biggest gainers from the growth in the land-based casino industry is the real estate industry.

That is because even the smallest SA casino has the potential to generate sustained property development within its location. Casinos now serve more than gambling dens; they also house entertainment, sports, and recreational facilities, making them the single most efficient land use. With the increase in casino complexes in South Africa, the local real estate industry is up for a lot of demand for residential, commercial, and industrial properties.

Final Thoughts

The South African real estate industry has had a robust relationship with the local land-based casino industry. And that’s because each needs the other to thrive.

Although the South African residential property market might not bloom at the moment, no thanks to the increased cost of living and higher interest rates, the consequent drop in residential property prices offers a great investment opportunity.

So, realtors should consider investing in rental properties around South African land casinos because there will always be a demand for them. A prudent way to maximize return is to buy properties and put them up for rent.