South African casino industry pushes to reopen next month

South Africa’s casino industry is pushing for the sector to be allowed to reopen within the next month as government considers easing Covid-19 restrictions in Level 3.

After the government’s decision to allow religious gatherings of 50 people or less in Level 3, several business sectors are now lobbying to also be allowed to operate, even at reduced capacity to be in line with Covid-19 social distancing and health protocols, as reported by Moneyweb.

Casinos, theme parks, sit-down restaurants, cinemas, theatres, eventing venues, salons and spas as well as clubs and bars are currently not allowed to operate under Level 3 restrictions. Interprovincial domestic tourism and air travel are also banned, barring exemptions for limited business travel and certain other cases, such as funerals.

Major casino properties across the country, such as Montecasino (Johannesburg), Sun City (North West), Suncoast (Durban) and Grand West (Cape Town) have been closed since late March due to the lockdowns. The casino industry directly employs more than 20,000 people.

With no income, but still having to pay expenses such as salaries, municipal rates and security, JSE-listed Tsogo Sun Gaming and Sun International are facing spiraling debt. The Covid-19 economic fallout has also seen Tsogo Sun Gaming being forced to write-down the value of its gaming properties by R2 billion.

The two biggest gaming groups in the country now also face the prospect of retrenching staff, especially if the ban on trade continues. Sun International has already taken a decision to permanently close its Carousel Casino in the North West and Naledi Casino in the Free State.

Both groups have been part of the Tourism Business Council of South Africa’s (TBCSA) lobbying for various sectors of the broader tourism industry to be reopened in Level 3. According to Moneyweb, which cites senior sources in the gaming industry, casinos are likely to reopen within the next month, but government is yet to confirm this.

The CEOs of Tsogo Sun Gaming, Sun International and the TBCSA reiterated calls for the sector to be allowed to operate in Level 3 under reduced capacity due to strict Covid-19 health and safety protocols. Following the release of Tsogo Sun Gaming’s annual results for the year to the end of March, group CEO Chris du Toit told that news website that the industry needs to be allowed reopen as soon as possible. “Taking into consideration the strict measures we will have in place, there is no reason why we shouldn’t be allowed to operate in a responsible manner from the 1st of July,” he said.

Sun International CEO Anthony Leeming told Moneyweb that following the industry’s extensive lobbying, there “are indications that they [government] want the sector to open in July”. He said keeping the sector closed until September or later will be much more disastrous.

TBCSA CEO Tshifhiwa Tshivhengwa told the news website that as part of its meeting with President Cyril Ramaphosa in May, the council also presented the case for casinos and sit-down restaurants to be allowed to operate, in addition to allowing for domestic leisure travel and small events of less than 50 people to take place.

Unlisted gaming and hospitality group Peermont Hotels, Casinos and Resorts said all its properties in South Africa remain closed until further notice from government. Peermont’s flagship casino complex is Emperors Palace near OR Tambo International Airport.