South Africa WCGB Bookmaker License — Horse Racing, Sports & Casino, R9.4M Tax Loss

Listing Details

Jurisdiction

South Africa

Regulator

Western Cape Gambling Board (WCGB)

License Type

Bookmaker License — WCGB South Africa

Entity Type

Licensed Bookmaker — Dormant, Clean Transfer

Description

A Western Cape Gambling Board (WCGB) licensed bookmaker entity is available for acquisition, offered by a retired traditional bookmaker for whom this business was a side operation. The licence permits horse race bookmaking as the primary activity, with additional permissions covering sports betting and casino-style games — providing the acquiring operator with a broad licensed scope across all major gambling product categories. The entity will transfer in a completely clean dormant form — no debts, no assets, no staff, and no office. A business bank account with Investec is in place and transferable. There is currently no merchant account — required for online operations — though the seller has indicated availability to assist with this setup post-sale. Tax Position — R9.4M Assessed Loss The entity carries an assessed tax loss of R9,400,000, recoverable only against future profitable bookmaking income at South Africa's 27% corporate income tax rate — representing a potential future tax shield of approximately R2,538,000. The loss originated during the Covid-19 period when the seller, who fell seriously ill during a prolonged two-year recovery, continued paying a workforce of 20+ staff throughout that period. This assessed loss represents a meaningful future tax shield for an acquiring operator planning to generate bookmaking revenue through the entity. BEE Position The Western Cape Gambling Board does not require BEE ownership for entities with below R10 million per annum revenue. The entity currently holds a BEE Micro Entity Exemption Certificate on this basis. A full BEE structure — including a shareholder agreement and call option agreement — can be provided by the seller if required by the acquirer. Ongoing Running Costs In dormant state, post-acquisition running costs are minimal — approximately R50,000 per annum (approximately USD 3,000), covering WCGB compliance and annual fees (R30,000), a serviced office such as Spaces or Regus (R3,000–4,000/month), CIPC annual fees (R2,000), accounting and tax filing (R10,000), and bank fees (R2,000). Licence Deposit A R200,000 personal deposit, currently held by the Western Cape Gambling Board, must be placed with the gambling board by the new owner as a condition of the licence transfer. This deposit is in addition to the acquisition price. Change of Control The change of control application to the WCGB is estimated to take 2 to 3 months and cost the buyer approximately R100,000 in regulatory and legal fees. The seller will warrant licence validity and a zero NAV position at closing.

Key Highlights

• WCGB-licensed bookmaker — horse racing, sports betting, casino-style games
• Transfers in clean dormant form — zero debts, zero assets, zero liabilities
• Business bank account with Investec — active and transferable
• R9,400,000 assessed tax loss — recoverable against future bookmaking income at 27% CIT
• BEE Micro Entity Exemption Certificate — no BEE required below R10m revenue
• BEE structure available if required — shareholder and call option agreement
• Seller warrants licence validity and zero NAV at closing
• Running costs in dormant state: approximately R50,000 per annum (~USD 3,000)
• Change of control: approximately R100,000 and 2–3 months
• Licence deposit: R200,000 required from buyer — placed with gambling board
• PA available to transition with business at buyer discretion
• Seller available to assist with merchant account setup post-sale