Second-licence blues for Sun International
Sun International stands to lose the most from the new casino proposals as these could cannibalise its GrandWest client base
One of the biggest medium-term challenges for Sun International is the possibility of a second casino in the Cape Town metropole. Sun has enjoyed an unchallenged run in Cape Town even though the exclusivity agreement held by its cash-spinning GrandWest casino ended in 2013. The Western Cape government, looking for new ways to boost its tax coffers, has long been mulling a second casino licence for Cape Town. Whether a second casino does boost taxes significantly or merely "cannabilises" the tax flows from the existing GrandWest casino remains to be seen. According to a Government Gazette issued by the Western Cape government at the end of February, proposals are afoot to allow existing Western Cape casino licences to be transferred to Cape Town. Aside from GrandWest, the other four casino licences are in Langebaan (the Mykonos casino); Worcester (The Golden Valley); the Caledon Hotel & Spa; and the Garden Route casino in Mossel Bay. The Gazette discloses that three potential zones h...
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