JSE-listed casino and leisure giant Tsogo Sun has finally received approval from the Western Cape Gambling and Racing Board to relocate its Caledon casino licence to Somerset West, paving the way for the group to invest in a new gaming and hospitality property within the Cape Town metro.
Tsogo Sun described the decision as “a positive development for the Western Cape and the group,” noting that the planned investment will bring world-class casino and hotel infrastructure to the underserved Helderberg and Overberg regions.
The approval marks the end of a prolonged regulatory impasse.
Tsogo Sun previously criticised delays in the licensing process, saying its Somerset West and Strand plans had been stalled for more than a decade.
In May, the group described the situation as “disappointing” and argued that “entrenched market dominance by a rival operator [Sun Interational] had limited competition, restricted consumer choice, and undermined efforts to broaden tourism infrastructure in the province”.
“These regions have been unserved and deprived of convenient, appropriate quality and secure casino and hotel development,” the company said earlier this year, adding that the exclusivity period granted to the competing operator had long since expired.
Sun International’s GrandWest Casino complex is currently the only fully-fledged casino operating in the Cape Town metro.
Tsogo Sun had also emphasised that land-based casinos create significant direct and indirect jobs, and that the Helderberg and Overberg investments could play a role in boosting local employment and tourism.
The group, in which HCI has a major stake, saw its shares gaining almost 2% on the JSE in morning trade, following news of the new casino licence. Tsogo Sun’s share price closed 1.24% up on Thursday, while most JSE stocks closed in the red.