The Sunday Mail
“The house always wins” is an admonishment usually given to obsessive gamblers as a reminder that casinos are not set up to make them rich.
Casinos are a business, and despite the jackpots on offer, the business always comes out on top.
Well, not always.
The prevailing cash crunch and a proliferation of sports betting houses has forced several casino operators to shut down across Zimbabwe.
Information gathered by The Sunday Mail Leisure indicate that a number players in the casino business will not renew their licences when they expire this November.
In an interview, Casino Operators Association of Zimbabwe chair Max Tshuma confirmed the cheerless news.
Tshuma said business was not flowing as usual hence some operators had notified his office of their plans to exit the gaming trade.
“Indeed we are going through a dark patch but we should never lose hope. The situation is so dire to the extent that if it does not improve by November we are going to lose some operators. They are simply not going to renew their licences,” revealed Tshuma.
Reputable operators (names withheld) are among the lot opting to cease operations. And most cite depressed revenue and stiff competition from sports betting as the major reasons for quitting the gaming business.
Sports betting shops are emerging everywhere, taking over strategically located buildings in towns and cities. Football is the most popular target for bets though they can also be placed on anything and everything from dogs and horses, to basketball and cricket.
Slot machines, cards, dice and roulette tables are no longer the go-to places for punters.
“Casinos are no longer functioning and I together with others will close operations by end of year. If you notice in the past year or so, we scaled down operations while some of our counterparts completely closed shop. Those still operating are certainly doing so to see through their existing licences that expire end of year (November),” said a prominent operator who preferred anonymity.
A couple of months back, some casino operators told this writer that they had applied for sports betting licences.
But the COAZ chairman says it is not all gloom. He argues the sector is affected just like any other business by the economic challenges, hence the need to persevere in anticipation of brighter days.
“It’s not only the casino industry suffering. What we are currently going through is a general indication of the overall performance of the economy. We are hopeful though that through the implementation of Governments’ economic recovery strategies stated in the Zim-Asset, plus positive data coming from the relevant ministries, we will, sooner rather than later, find our footing,” stated Tshuma.
“… 2016 will definitely be a tougher year compared to last year and probably in 2017 we will have fewer operators than we currently have. However, I think we need to devise survival strategies to see us through these murky waters.”
Officials from the Lotteries and Gaming Board insist operators will maintain their licences. They surmise casinos, sports betting and horse racing attract different clients who rarely cross floors. Thus, all games have a unique clientele that cannot be serviced by others, meaning the cash challenges are just a temporary setback that will not lead to closure of casinos.
The casino licence renewal fee is pegged at US$2 500.
Apart from this fee, most casino operators use rented space, mostly in hotels. The rental fees vary depending on location, but are mostly charged between 10 and 15 percent of revenue over a given period.
The operators argue that that little they realise is failing to meet their day-to-day expenses that include employees wages which are often fixed regardless of how the business is performing. Casino revenue is estimated to be depressed at a ratio of 1:10 compared to sports betting. Surveys indicate an individual requires at least US$100 for a decent day in a casino. And the odds of winning are decidedly slim.
The same US$100 has better odds of success in sports betting where wagers start from as little as US$1.
