Tsogo Sun bemoans lack of progress over expansion hopes in Somerset West and Strand
South African casino giant Tsogo Sun has criticised ‘disappointing’ regulatory delays preventing it from investing in new casinos in the Western Cape for over a decade because of the provincial authorities’ failure to process its application for a new development.’
Tsogo Sun has wanted to build resorts in Somerset West and Strand but has been prevented by red tape.
The operator said: “The significant delay in finalising the application by the regulatory authorities and provincial government has been disappointing, given that land-based casinos invest substantially in infrastructure and create significant direct and indirect jobs.
“Substantial investments planned for the Western Cape will contribute considerably to the tourism attraction of both the Helderberg and Overberg regions. The Somerset West and Strand areas have been unserved and deprived of their own convenient, appropriate quality and secure casino and hotel development for over a decade following the expiry of the exclusivity period for a single casino in the Cape Metropole. The other casino operator having a complete monopoly of the Western Cape, currently has a market share of approximately 81 per cent of the province’s casino revenue. With regards to the pending application for a 3-to-2 merger by other casino operators, the Competition Commission has recommended to the Competition Tribunal not to approve the acquisition of the mega-casino strategically located adjacent to OR Tambo International Airport.”
Totsogo Sun made its complaint whilst announcing income of R11.16bn generated for the year until March 31, 2025, and adjusted EBITDA amounted to R3.47bn.
It said: “In general, the casino division experienced pressure on revenue and adjusted EBITDA. The adjusted EBITDA for the Gauteng casinos (including all precinct activities), was particularly impacted with Gold Reef City experiencing a tough year. KwaZulu-Natal delivered a relatively stable performance, while the Western Cape outlying casinos were down. Other casinos located in Mpumalanga (Emalahleni and Mbombela), Free State (Welkom), and the Eastern Cape (East London), ended a challenging year with a significant combined decline of 27 per cent in adjusted EBITDA. The business models of these properties are being re-evaluated to improve efficiency.
“The casino precincts have continued with the implementation of green energy solutions. As part of this project, the Montecasino and Gold Reef City casino solar plant installations were expanded and Gold Reef City Theme Park, Emnotweni, The Ridge and Blackrock casinos implemented new installations in February 2025. All these installations are limited to generating power for daytime usage. Montecasino will be expanding its privé offering with a designated area providing direct access to Palazzo hotel guests. The Montecasino privé and main floor are also currently being upgraded. The Emerald Resort and Casino (Emerald) upgrade project continued to disrupt operations. Refurbishment of the hotel, the surrounding pool and dining area, minor further upgrades to the chalets, the spa and the main casino floor will all be completed during 2025.
“In addition, the Fun Dome entertainment area and Piazza are scheduled to be upgraded and several new restaurant tenants introduced before the end of the 2026 financial year. With only the events space and some external upgrades remaining by the 2026 financial year end, the group is optimistic regarding the potential improved financial results of Emerald from the 2027 financial year.”
