Significant Challenges for Tsogo Sun as Somerset West Casino Relocation Encounters Hurdles

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

This information is highlighted in Sun International’s financial results for the 2025 fiscal year (ending December), published in March.

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

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

This stalemate is now being prolonged by Sun International.

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

It is uncertain how long this delay will persist, as a judicial review could span several years.

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

Moreover, the court’s ruling could also be appealed. Ultimately, the courts will assess whether how the decision was made was fair and rational. One insider predicts the delay could be at least 24 months.

Moneyweb understands that Sun International had initially not planned to contest the WCGRB’s decision; however, a talent war, which involved some personnel shifting from its significant SunBet division to Tsogo’s online betting unit, playTsogo, prompted its decision to act.

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

Read:
Sunbet now surpasses cash cow GrandWest
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Construction begins on R650m GrandWest Mall development

SunWest’s GrandWest, enjoying virtual exclusivity in the Cape metro, reported adjusted Ebitda of R625 million last year, holding an estimated 81% market share of the province’s casino revenue.

Upping the ante

It is understood that while the departed personnel were not executives, many held significant operational roles within Sunbet.

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

To enhance 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 new CEO Ulrik Bengtsson, who took over in July 2025, Sun International has made significant recruitment efforts, 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 “adding 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 offer exciting new facilities to the underserved 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 (final detailed costings are still in progress), assuming no delays to regulatory and construction processes.

Tsogo’s existing casino, The Caledon, remains in operation.

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 would be reasonable to estimate that The Caledon accounts for 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 aimed at Tsogo capturing part of GrandWest’s existing market share (Sun International’s relocation of The Carnival to Time Square in Menlyn effectively encroached on Tsogo’s dominance in Gauteng, likely reducing 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.