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, temporarily putting this investment on hold.

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

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

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

This standstill is now being prolonged by Sun International.

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 decided to review that decision. We will continue to pursue appropriate legal and regulatory avenues.”

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

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

Moreover, the court’s verdict could also be appealed. Ultimately, the courts will decide whether how the decision was reached was fair and rational. One insider predicts that the delay could last at least 24 months.

Moneyweb understands that Sun International initially did not plan to contest the WCGRB’s decision; however, a talent war, which saw some staff depart from its crucial SunBet division to Tsogo’s online betting unit, 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, quickly positioning itself among 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 development

SunWest’s GrandWest, which enjoys significant 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 is understood that while the departed talent 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 as the CEO of the unit.

To strengthen its executive team, Leslie Peters, a former executive from Games Global (formerly 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 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 “the addition of a casino in the broader Cape Town area will ultimately provide the Tsogo Sun customer base with an upgraded property in a sought-after location and will offer exciting new facilities to the underserved communities surrounding 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 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.

Throughout 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 an 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 accounts for roughly half of these figures.

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

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

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

There’s a lot on the line.