Vukani Gaming Eastern Cape awarded a further Route Operator Licence

PR15Dec2011_1PR15Dec2011_2Vukani Gaming Corporation, a wholly owned subsidiary of Hosken Consolidated Investments (Pty) Ltd, a company listed on the Johannesburg Stock Exchange, has today announced that its Eastern Cape subsidiary, Vukani Gaming Eastern Cape (Pty) Ltd, has been awarded a further route operator licence authorising the operation of 1 000 Limited Payout Machines in the province of the Eastern Cape for a 15-year period commencing on 8 April 2012. Limited payout machines are slot machines located outside casinos in respect of which limited stakes and prizes are prescribed, and are typically found in pubs, clubs and other places of entertainment aimed at persons of or above the age of eighteen years.

The award of the licence follows upon a bidding process overseen by the Eastern Cape Gambling and Betting Board, which culminated in the award of the licence on 14 December 2011. Vukani Gaming Eastern Cape has held a route operator licence in the Eastern Cape, issued for a term of seven years, since October 2004, expiring on 7 April 2011. It applied for a further licence pursuant to a general invitation issued by the Board earlier this year. During the term of its existing licence, the company has achieved the rollout of almost its full quota of 1 000 limited payout machines in carefully selected venues in the Province, and will be permitted to retain these sites in terms of the further licence which has now been awarded.

“I am absolutely delighted that we have been awarded a further licence,” said Mr Bandile Mogiba, Director of Vukani Gaming Corporation. “The PR15Dec2011_3success of this application is testimony to the huge strides made by Vukani Gaming Eastern Cape in establishing a vibrant and successful route in the Province. As the holder of a route operator licence issued by the Board, Vukani Gaming Eastern Cape was able to offer the significant benefit of proven credentials regarding both its suitability for licensing and its capacity to manage and operate a licensed route operation successfully.” Through its subsidiaries, Vukani Gaming Corporation holds licences in all the provinces where Limited Payout Machines are authorised to be rolled out and currently operates more than 3 700 machines in these provinces. “The further licence awarded in the Eastern Cape provides further confirmation that Vukani Gaming Corporation is the undisputed leader in the Limited Payout Machine sector in South Africa,” he added.

 

Mr Mogiba predicts that the award of a further licence will have a positive impact on the economy of the Eastern Cape and will result in a massive PR15Dec2011_4capital injection into the Province. “It also provides a great boost to Broad-based Black Economic Empowerment in the Province and will stimulate the promotion of Small, Medium and Micro enterprises in the Eastern Cape, from which Vukani Gaming Eastern Cape will continue to procure various goods and services. Over and above this, a significant number of both direct and indirect jobs will be maintained in the process,” he said.

“We are also extremely proud of the fact that in excess of 71% of the shareholding in Vukani Gaming Eastern Cape will be in the hands of Broad-based Black Economic groups, whilst over 40% of these shareholders are residents of the Eastern Cape,” Mr Mogiba said. “What is also of great significance is that this shareholding has been acquired without any cost to the local shareholders”.

Mr Mogiba said that the award of the further licence would allow Vukani Gaming Eastern Cape to build on its established track record, to complete the rollout of its full quota of 1 000 limited payout machines within the foreseeable future and to focus on a number of pioneering enterprise development initiatives in the Province. “We are ready and eager to continue with our licensed operations, subject to the conditions to be attached to the licence, and look forward to working with the Eastern Cape Gambling and Betting Board in this regard,” he said.

Mr Mogiba also indicated that a percentage of revenue generated by play on the machines will be spent on corporate social investment projects in the Eastern Cape, which will include assistance with education and training projects and the award of bursaries to deserving candidates. Contributions will also be made to the National Responsible Gambling Programme, which actively promotes responsible gambling in the country.

For enquiries, contact Bandile Mogiba at:  082 854-6024