Major Setback for Tsogo Sun as Somerset West Casino Relocation Faces Obstacles

Sun International, a key competitor, is set to dispute the regulators’ decision permitting Tsogo Sun to shift its Caledon casino license to the Helderberg region in the Cape Town metro, effectively putting this investment on hold for the time being.

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

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

In September, Tsogo announced it had finally secured approval from the Western Cape Gambling and Racing Board (WCGRB), marking the end of a prolonged regulatory standstill that lasted over ten years.

This deadlock is now being extended 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 resolved to undertake a review of that decision. We will continue to engage through the appropriate legal and regulatory channels.”

It remains unclear how long this delay will last, as a judicial review could take several years.

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

Additionally, that court’s decision could also be appealed. Ultimately, the courts will determine whether how the decision was made was fair and rational. One insider anticipates the delay to be at least 24 months.

Moneyweb understands that Sun International had initially not intended to contest the WCGRB’s decision; however, a talent war, which saw some personnel move from its important SunBet division to Tsogo’s online betting unit, playTsogo, compelled its decision to act.

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

Read:
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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 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 roles 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 bolster 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:

Under the leadership of new CEO Ulrik Bengtsson, who took charge in July 2025, Sun International has made notable 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 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 houses 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 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 based 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 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.