Phumelela Gaming & Leisure said on Friday it had breached loan covenants on R300m of debt, amid uncertainty over new gambling laws that have already significantly dented its profitability.

Amendments to Gauteng's gambling regulations took effect from April 1, with a 3% levy on punters' winnings being withheld, costing the company R6m on average per month in income, the group said in a statement on Friday.

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