Tsogo Sun Blames Western Cape Red Tape for Delayed Casino Expansion

Tsogo Sun, one of South Africa’s largest hospitality and gaming companies, has expressed mounting frustration over what it calls “disappointing” delays by Western Cape regulatory authorities. The company has been seeking approval to develop casino and hotel projects in Somerset West and Strand for more than a decade, but continues to face administrative barriers.

According to the group, the stalled process is not only a setback for their own expansion but also a missed opportunity for economic development in the Helderberg and Overberg regions. Tsogo Sun has long argued that its planned developments would create jobs, improve infrastructure, and stimulate tourism in these coastal areas. Despite its readiness to invest, the group says the lack of regulatory progress has effectively frozen its contribution to local economic upliftment.

Monopoly Concerns and Market Fairness

In its criticism, Tsogo Sun pointed to the dominance of a single rival operator that controls approximately 81% of Western Cape’s casino revenue. The company noted that this market imbalance has persisted despite the expiry of that operator’s exclusivity agreement. This concentration, Tsogo Sun argues, is damaging to competition and undermines opportunities for investment in underserved areas.

The company sees Somerset West and Strand as natural hubs for tourism growth, given their popular beaches and appeal to both domestic and international visitors. Yet, in the absence of new casino and hotel infrastructure, Tsogo Sun warns that these regions risk falling behind other provinces that have been more responsive to investment.

Financial Resilience Amid Industry Challenges

Despite these local setbacks, Tsogo Sun reported a strong financial performance with revenue reaching R11.2 billion over the past year. The company has weathered broader industry challenges, including declining adjusted EBITDA in Gauteng, Mpumalanga, and the Free State. In Gauteng, its flagship Gold Reef City casino experienced a particularly tough year, highlighting the impact of a volatile operating environment.

In addition to its development ambitions, Tsogo Sun continues to invest in sustainability across its operations. Recent efforts include expanding solar energy installations at key properties like Montecasino and Gold Reef City to reduce costs and environmental impact. The group is also refurbishing existing assets such as the Emerald Resort and Casino, with upgrades planned for completion by 2027.

For South African players looking to explore top-rated online alternatives while land-based expansion stalls, our list of trusted online casinos offers a variety of licensed platforms that meet high standards for player experience and safety.

As Tsogo Sun continues to press for regulatory approval, the spotlight remains on Western Cape authorities to address the delays and unlock the economic potential of new developments in the region.