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

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

This detail is found in Sun International’s financial results for the 2025 fiscal year (ending December), which were released in March.

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

In September, Tsogo revealed that it had finally received approval from the Western Cape Gambling and Racing Board (WCGRB), marking the end of a lengthy regulatory impasse that lasted over ten years.

Sun International is now prolonging this stalemate.

During its March presentation, Sun International CFO Norman Basthdaw stated, “Following the decision made 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 proper legal and regulatory channels.”

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

Sun International is expected to seek an interim interdict shortly (if it hasn’t already), which would lead to a review in the Western Cape High Court.

Furthermore, that court’s ruling could also be subject to appeal. Ultimately, the courts will determine if the decision-making process was fair and rational. An insider anticipates that the delay will 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 personnel from its crucial SunBet division moved to Tsogo’s online betting unit, playTsogo—influenced its choice to take action.

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

Read:
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Construction begins on R650m GrandWest Mall development

SunWest’s GrandWest, which enjoys practical exclusivity in the Cape metro, recorded adjusted Ebitda of R625 million last year, holding an estimated 81% market share of the entire province’s casino revenue.

Upping the ante

It is understood that while the departed talent were not executives, many held senior and influential operational positions within Sunbet.

Simon Gregory, CEO of Sunbet, was not among those recruited by Tsogo. He joined Sun International in January 2022 and has over 15 years of experience in online betting and gaming. He continues as CEO of the unit.

To strengthen its executive team, Leslie Peters, a former executive from Games Global (previously Derivco), was appointed as 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 leadership of new CEO Ulrik Bengtsson, who took over in July 2025, Sun International has made notable hires, 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 an attractive location and will offer exciting new facilities to the unserved surrounding communities of this area of Cape Town.

The estimated development cost for the Somerset West site is approximately R1.29 billion, at current values, over two years (with final detailed costings still in progress), assuming there are no interruptions to regulatory and 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 (no longer 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 fair to estimate that The Caledon constitutes roughly half of each of these figures.

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

The entire relocation process is driven by Tsogo’s intent to capture a portion of GrandWest’s current market share (Sun International’s relocation of The Carnival to Time Square in Menlyn effectively encroached on 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 much at stake.