LPMs explained: the R5 stake, the R500 prize and who licenses the machines

What counts as a limited payout machine

The National Gambling Board describes an LPM, in the words of the National Gambling Act 7 of 2004, as "a gambling machine with a restricted bet and prize". The Regulations on Limited Payout Machines (Government Notice R1425, in force from 21 December 2000 and amended in 2007) are more specific. An LPM is a gambling machine outside of a casino, where the stakes and prizes are limited as the regulations set out.

On the screen an LPM looks like a slot: reels, lines, credits. The difference is in the law around it. A casino slot sits inside a licensed casino. An LPM sits in an ordinary business that holds a site licence, and the money it handles is capped.

The caps: stake, prize and jackpots

The core limits are in regulations 5 to 7. As published, they say:

• Maximum stake: R5. The maximum aggregate stake on a single game is R5, and you cannot "double up" a win on the same game.
• Maximum prize: R500. The maximum aggregate prize for a single game is R500. It is paid as credits on the machine or in rand, with a cheque on request, and no other benefit may be added to it.
• No progressive jackpots. LPMs may not be linked to a progressive jackpot. A growing, linked jackpot is a casino product. See how progressive jackpots work for comparison.
• No credit. The site may not extend credit to players, and that includes cash advances on bank cards.
• No under-18s. Minors are barred from playing and from the designated LPM area.

Here is what the R5 and R500 caps mean together. The biggest possible single-game win is R500 ÷ R5 = 100 times the maximum stake. A slot in a casino is not held to that ceiling by the LPM regulations. Rand limits like these can be amended, so check the current text on the official notice or with your provincial board.

Who is who: route, site and independent site operators

The regulations split the business into licence categories:

Licences come from the provincial licensing authority, not the NGB. The NGB's FAQ points you to the provincial boards for licences. Every machine must report to a national central electronic monitoring system (CEMS). The NGB names Route Monitoring as the company that runs it.

The regulations also say where machines may go:

• Machines per site. The normal limit is 5. A board may approve more, up to 40, on application.
• Incidental use. LPMs must be incidental to the main business. Floor space and the share of revenue are among the factors considered.
• Unsuitable sites. Premises near schools, churches or playgrounds, or where minors can reach the designated area, are unsuitable.
• Approved equipment. Machines must be certified to the SABS standard, and moving a machine needs the province's approval.

How many machines each province may have

Regulation 2 sets a national ceiling of 50,000 LPMs and gives each province a maximum:

The provincial maximums add up exactly to the national ceiling: 10,000 + 9,000 + 9,000 + 6,000 + 4,000 + 4,000 + 3,000 + 3,000 + 2,000 = 50,000. Far fewer are in use. The NGB's LPM sector page reports 15,805 active machines at 2,599 site operators in the 2023/24 financial year, about a third of the ceiling (15,805 ÷ 50,000 ≈ 31.6%). KwaZulu-Natal had 21.4% of active machines and Gauteng 18.8%.

LPM vs casino slot: the numbers side by side

The NGB's audited statistics for the year to 31 March 2025 let you compare the two sectors directly:

The RTP figures are sector averages, not the setting on any one machine. In rand, an average RTP of 92% means that across all play, R100 staked returns about R92 to players and R8 stays as GGR. At 94%, R100 returns about R94 and R6 is GGR. Over many spins that is a third more revenue per R100 on an average LPM (R8 against R6). The NGB's quarterly figures show LPM RTP at about 92% to 93% in every province. LPM revenue was flat that year, down 0.04% on the year before, at R4,148,159,930.

For how slot RTP and volatility work in general, see our slots guide.

Online "LPMs" and what the law says

LPMs are land-based. The NGB's FAQ points to section 11 of the National Gambling Act, which bars interactive (online) gambling games in South Africa. A website that calls its slots "LPMs" is not offering a licensed LPM. If you are unsure about a venue, ask the provincial gambling board whether it holds a site licence.

The low stakes do not make LPMs harmless. The machines are fast, and at R5 a game, R500 can go in a hundred spins. If play stops being fun, the responsible gambling page has the tools, and the South African Responsible Gambling Foundation's toll-free line is 0800 006 008, open 24/7. LPMs are for over-18s only.