Tsogo Sun unfazed by rival casinos
Its Time Square opening was ‘less disruptive than expected’
Increased competition in the key Gauteng casino market will not rattle gaming and leisure giant Tsogo Sun. Speaking after the release of year-to-end-March results on Wednesday, CEO Jacques Booysen said the opening of the R3bn Time Square casino precinct in Menlyn by rival Sun International had been far less disruptive than initially anticipated. Tsogo, which operates the Montecasino, Gold Reef City and Silverstar casinos in Gauteng, initially predicted an annual revenue loss of more than R200m, but the actual loss was R80m to R90m, Booysen said. “We think they [Sun International] overestimated the market,” he said. The local casino market has suffered stagnating revenue and squeezed margins in recent years as discretionary spending by cash-strapped consumers has waned. Booysen said the local casino sector needed consumers “to get wealthier and, more importantly, feel wealthier”. A breakdown of individual casino performance showed that Tsogo’s Montecasino (Fourways) and Silverstar (n...
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