Operator News
South Africa – Western Cape operators warn that without exclusivity jobs will fall
By Phil - 16 July 2018
Casino operators in South Africa’s Western Cape has said that with exclusivity laws expiring and casinos being planned for new regions, revenue could be seriously impacted and ultimately cost the industry jobs.
The Draft Western Cape Nineteenth Gambling and Racing Amendment Bill, 2018, would update the Western Cape Gambling and Racing Act, 1996 (Act 4 of 1996), making it possible for current operators to more their premises to other locations. Casino gaming was set up in five of the Western Cape’s municipal regions, with a ten-year exclusivity period, which have now run out.
Plans have already been brought to the table for casino licences in the City’s eastern region and in the Table Bay and Tygerberg area.
Sun International CEO Anthony Leeming, said that the proposals could seriously dent GrandWest Casino’s profits with predictions that GGR will slide by 24 per cent.
He said: “The amendment, if granted, will permit the respective casino operator to relocate their licensed operations from their existing locations in the outlying areas to the newly established Table Bay and eastern region. The headcount will likely decline by 15 to 20 per cent.
“The majority of job losses will be from the casino, but a drop in footfall will result in additional and similar job losses in the supporting operations at GrandWest, as many of these businesses are entirely dependent on footfall generated by the casino.
“If Worcester is to close, 92 employees are forecast to lose their jobs alongside a reduction of R9 million in supplier spend.”
Jacques Booysen, Tsogo Sun chief executive, added: “We have seen the draft legislation and will submit our comments in terms of the process, with comments due by July 31. We are supportive of the possibility of relocating outlying casinos into the metropole as long as this is done in a manner that makes commercial sense for us.”
