Significant Challenges Ahead for Tsogo Sun as Somerset West Casino Relocation Hits Roadblocks

Sun International, a notable competitor, is poised 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 putting this investment on hold for now.

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

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

In September, Tsogo announced it had finally obtained approval from the Western Cape Gambling and Racing Board (WCGRB), signaling the conclusion of a lengthy regulatory impasse that lasted over ten years.

This deadlock is now being prolonged by Sun International.

During its March presentation, Sun International CFO Norman Basthdaw remarked, “In light of the decision made by the Western Cape Gambling and Racing Board regarding the license transfer, the group has decided 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 extend for several years.

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

Moreover, the decision from that court could also be subject to appeal. Ultimately, the courts will assess whether the process by which the decision was made was fair and rational. One insider anticipates the delay could last at least 24 months.

Moneyweb understands that Sun International had not initially planned to contest the WCGRB’s decision; however, a talent war, resulting in some personnel moving from its vital SunBet division to Tsogo’s online betting platform, playTsogo, prompted its decision to take action.

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, rapidly positioning itself among the top five online betting platforms in the country.

Read:
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Construction begins on R650m GrandWest Mall project

SunWest’s GrandWest, which enjoys practical 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 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 brings over 15 years of experience in online betting and gaming. He continues as CEO of 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 the leadership of new CEO Ulrik Bengtsson, who took over in July 2025, Sun International has made substantial 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 “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 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 around R1.29 billion, at current values, over the course of two years (final detailed costings are still being determined), assuming no interruptions to regulatory and construction processes.

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

It features over 300 slot machines, 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 would be fair to estimate that The Caledon constitutes approximately 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 hinges on Tsogo capturing a portion of GrandWest’s existing market share (Sun International’s relocation of The Carnival to Time Square in Menlyn has effectively encroached upon 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 much at stake.