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Sun International will challenge the Western Cape Gambling and Racing Board’s decision to allow Tsogo Sun to relocate its Caledon casino licence to the Helderberg region in the Cape Town metro, raising the prospect of a lengthy delay to Tsogo’s planned R1.29 billion ($79 million) development in Somerset West.
The approval was confirmed by Tsogo in September last year after a regulatory process that lasted more than a decade. Sun International’s decision to seek a review means the matter is now likely to move to the courts, where the process could take years.
Sun International CFO Norman Basthdaw disclosed the decision in the group’s 2025 financial year results presentation, released in March:
“Following the decision taken by the Western Cape Gambling and Racing Board regarding the licence relocation, the group has resolved to take that decision on review. We will continue to engage through the appropriate legal and regulatory processes.”
A judicial review would test whether the regulator’s decision was made fairly and rationally. Sun International is also expected to seek an interim interdict, if it has not already done so. Any High Court ruling could still be appealed, and one insider expects the delay to be at least 24 months.
The dispute comes as Tsogo seeks to move The Caledon licence closer to Cape Town, where SunWest’s GrandWest has practical exclusivity in the metro market. GrandWest reported income of R1.85 billion ($110 million) and adjusted EBITDA of R625 million ($38.1 million) in 2025, with an estimated 81% share of the Western Cape’s casino revenue.
Tsogo said the relocation would allow it to serve a part of the Cape Town market that does not currently have a casino:
“The addition of a casino in the broader Cape Town area will ultimately provide the Tsogo Sun customer base with a superior property in a desirable area to visit and will provide exciting new facilities to the surrounding communities of this unserved outlying area of Cape Town.
“The development cost for the Somerset West site is estimated to be approximately R1.29bn, at current values, over two years (final detailed costings are still being completed), subject to no interruptions to the regulatory and construction processes.”
The Caledon remains open. The property has more than 300 slot machines, tables, and a 95-bed hotel. Tsogo no longer reports separate results for each Western Cape casino, but its provincial portfolio, comprising The Caledon, Garden Route Casino at Pinnacle Point in Mossel Bay, and Mykonos in Langebaan, reported income of R573 million ($34.9 million) and adjusted EBITDA of R219 million ($13.3 million) for the year ended March 31, 2025. The Caledon is estimated to account for roughly half of those figures.
The relocation is expected to target part of GrandWest’s current market share. A similar pattern followed Sun International’s relocation of The Carnival to Time Square in Menlyn, which affected Tsogo’s Montecasino position in Gauteng and likely reduced some market share from Peermont’s Emperor’s Palace.