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Operational overview

LPM Operations

GPI’s acquisition of its LPM interests advanced one of the four main objectives of the National Gaming Legislation, namely the upliftment of previously disadvantaged communities, and therefore represents a key milestone in the evolution of the South African gambling industry.

A total of 50 000 LPMs were initially approved for roll-out in South Africa through three staggered stages, the first of which has taken place and totals some 19 500 machines. As at end October 2011, just over 6 700 of these 19 500 LPMs were operational, the bulk of which are in the Western Cape and KwaZulu-Natal.

Detailed below is a breakdown of the total number of LPMs allocated to each province, as well as the current provincial split of the initial 19 500 accompanied by the actual number of licensed LPM operators and operational LPMs as at 31 October 2011.

In staying true to our vision of becoming a major and respected force in the gaming and leisure industry in Africa, GPI has always aspired to establish a national footprint in the LPM industry with operations in most provinces, and ultimately expanding that operational and financial blueprint responsibly to the rest of the continent. As such we have adopted a strategy which, if achieved, could see GPI operating a national network of some 5 000 LPMs in the short to medium term.

In addition to the physical expansion of our LPM footprint, opportunity exists, and is presently being addressed, to increase the present limitations on LPM Bet and Jackpot Limits. The current limitations of a maximum bet per game of R5,00 and a maximum jackpot (Payout) of no more than R500,00 per game were legislated as far back as 1996. We believe that there is every justification to adjust these limits for at least an inflationary increase.

The map below reflects the status of South Africa’s LPM industry as at 31 October 2011.

South Africa's LPM industry as at 30 June 2010

Note: North West licensed their first operational LPM site in July 2011.
           The Free State licensed their first operational LPM site in September 2011.