Significant Challenges for Tsogo Sun as Somerset West Casino Relocation Hits Snags

Sun International, a major competitor, is preparing to challenge the regulators’ decision that allows Tsogo Sun to transfer its Caledon casino license to the Helderberg area in Cape Town metro, effectively stalling this investment for now.

This detail was revealed in Sun International’s financial report for the 2025 fiscal year (ending December), which was published in March.

Read: Tsogo Sun secures Somerset West casino license after a decade-long wait.

In September, Tsogo announced it had finally gained approval from the Western Cape Gambling and Racing Board (WCGRB), concluding a prolonged regulatory standoff that lasted over ten years.

This impasse is now extended by Sun International.

During its March presentation, Sun International CFO Norman Basthdaw remarked, “Following the decision by the Western Cape Gambling and Racing Board regarding the license relocation, the group has resolved to review that decision. We will continue to engage through the appropriate legal and regulatory channels.”

The duration of this delay remains uncertain, as a judicial review could span several years.

Sun International is anticipated to seek an interim interdict soon (if it hasn’t already), which will then be followed by a review in the Western Cape High Court.

Moreover, the court’s ruling could also be subject to appeal. Ultimately, it will be up to the courts to determine whether the process behind the decision was fair and rational. One insider predicts the delay could last at least 24 months.

Moneyweb reports that Sun International initially did not plan to contest the WCGRB’s decision; however, a talent exodus, where key personnel migrated from its significant SunBet division to Tsogo’s online betting platform, playTsogo, compelled its action.

In 2025, SunBet reported profits (adjusted Ebitda) of R744 million, more than double its earnings from 2024. It has established itself as the largest profit center within the group, rapidly becoming one of the top five online betting platforms in the nation.

Read:
SunBet now more profitable than cash cow GrandWest
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Construction begins on R650m GrandWest Mall project

SunWest’s GrandWest, which holds practical exclusivity in the Cape metro, reported adjusted Ebitda of R625 million last year, capturing an estimated 81% market share of the province’s total casino revenue.

Upping the ante

It’s known that while the departing personnel were not executives, many held senior and influential operational roles within SunBet.

Simon Gregory, CEO of SunBet, was not among those recruited by Tsogo. He joined Sun International in January 2022 and boasts over 15 years of experience in online betting and gaming. He continues to serve as CEO of the division.

To strengthen its executive team, Leslie Peters, a former executive from Games Global (previously Derivco), was appointed chief technology and product officer in November 2025.

Read:

Sun International’s digital strategy yielding results

Sun International recruits SA Corporate’s Nomzamo Radebe

Under the guidance of new CEO Ulrik Bengtsson, who took the helm in July 2025, Sun International has made significant recruitment strides, including Mark Sergeant from the UK as COO of land-based casinos in February, and Nomzamo Radebe as COO of hospitality and sales (previously COO at SA Corporate Real Estate).

Tsogo’s hand

Tsogo indicated in November that “the addition of a casino in the broader Cape Town area will ultimately provide the Tsogo Sun customer base with a superior property in a desirable location and will extend exciting new facilities to the underserved areas surrounding this portion of Cape Town.

The anticipated development cost for the Somerset West site is around R1.29 billion, based on current values, over a two-year period (final detailed costings are still being finalized), assuming there are no delays in regulatory or construction processes.

Tsogo’s existing casino, The Caledon, remains operational.

It features over 300 slots, table games, and a 95-bed hotel.

Across the Western Cape (without detailing the performance of individual properties), Tsogo’s casinos—The Caledon, Garden Route Casino (Pinnacle Point in Mossel Bay), and Mykonos (Langebaan)—reported income of R573 million and adjusted Ebitda of R219 million for the year ending March 31, 2025.

It is reasonable to estimate that The Caledon constitutes approximately half of each of these figures.

Read:
Tsogo Sun incurs R30m loss on City Lodge sale
South Africa, we have a (gambling) problem

The entire relocation process is centered on Tsogo capturing a portion of GrandWest’s existing market share (Sun International’s relocation of The Carnival to Time Square in Menlyn effectively nibbled at Tsogo’s dominance in Gauteng, likely diminishing some market share from Peermont’s Emperor’s Palace).

In 2025, GrandWest reported income of R1.85 billion and adjusted Ebitda of R625 million.

There’s a lot at stake.