Tsogo Sun has officially received approval from the Western Cape Gambling and Racing Board to relocate one of its casino licences from the rural town of Caledon to the more urban and affluent Somerset West. The group, backed by Hosken Consolidated Investments (HCI), described the approval as a “positive development” for both the company and the province.
According to Tsogo Sun CEO Chris du Toit, the investment will result in the creation of a “standalone, world-class complex in Somerset West,” aimed at boosting tourism and economic activity in the Helderberg region. Planned facilities include a high-end hotel, conference centre, spa, multiple restaurants, and entertainment options – all under the banner of the Tsogo Signature Casino and Hotel.
In addition to the new development, the existing Tsogo Sun Caledon Resort will undergo refurbishments, including updates to its conferencing, spa, and hot spring offerings. This dual investment is expected to help form a “regional entertainment, business and tourism hub” across the Helderberg and Overberg areas.
Du Toit highlighted the expected upliftment for surrounding communities, pointing to employment opportunities, local procurement, and infrastructure improvements. He noted that the development would be particularly valuable for business travellers, corporate events, and domestic tourism.
Anchor investment analyst Steph Erasmus called the move a “step in the right direction,” especially as it would enhance Tsogo’s access to a more affluent and previously under-served customer base. With Somerset West being significantly closer to Cape Town than Caledon, the relocation also positions Tsogo Sun more competitively in relation to rival casino group Sun International, which operates the GrandWest Casino complex.
Economic growth, tourism expansion, and improved infrastructure are all expected outcomes of the move, according to the group.
The market response to the announcement was generally positive. Analyst Anthony Clark noted on social media that the move was “long expected” and made “strategic sense” from a demographic and business standpoint. However, he cautioned that the cost of shutting down the Caledon property and building a new facility would be considerable and could impact Tsogo Sun and HCI financially.
While some concerns were raised about the overall health of the brick-and- mortar casino sector in South Africa – especially in light of the continued rise of online gaming – analysts agreed that Tsogo’s move positions the company well. Erasmus pointed out that despite ongoing digital disruption, land-based gambling was “not going away.”
Players interested in seeing what South Africa’s top casinos have to offer can browse a range of trusted online casino options for a quality gambling experience, while keeping an eye on how land-based developments like this continue to shape the local industry.
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