More than 250 workers—about one-third of the staff–could lose their jobs at Sun International Boardwalk Casino and Entertainment World in Port Elizabeth, South Africa, according to a notice of proposed amendments of Emfuleni Resorts’ casino license application, recently submitted to the Eastern Cape Gambling and Betting Board. The proposals would lower the required number of staff members from 652 permanent workers to 400 full- and part-time employees.
Sun International Chief Operating Officer Thabo Mosololi said, “The casino complex has, since 2014, continuously lost revenue, which has impacted on profitability and ability to service its debt obligations. The intention of the application is to reduce operating costs in light of the reduced revenue and profitability.” Mosololi said the proliferation of bingo terminals plus a weak economy were to blame.
Chief Executive Anthony Leeming agreed. “The company was affected by the electronic bingo terminals in Port Elizabeth and expects a further loss in revenue now that one has opened in Uitenhage as well. We definitely saw a loss when the Uitenhage one opened in September.” Sun International posted a drop of 9 percent in overall casino revenue for the first six months of 2017.
Still, Mosololi said, “Closure is not being considered” at the Boardwalk Casino. “We believe that with appropriate restructuring there is still much opportunity to operate a successful business. All posts across the property are being reviewed. Possible retrenchments are subject to the approval of our proposed amendments, after which we will start engagement with the relevant stakeholders,” he said.
At the time of the notice, employees had not been told of the possible layoffs. “There are rumors, but nothing has been confirmed and we haven’t received anything,” an employee said.
South Africa Gambling Board Chief Executive Mabutho Zwane stated any decision regarding Boardwalk employees is still far off. He noted, “The application was published for objections and comments.” The closing date for public input will be January 3. The board will then conduct its own investigation on the matter and consider any comments or objections received,” Zwane said.
Nelson Mandela Bay Business Chamber Chief Executive Nomkhita Mona said, “We are saddened to hear of the potential job losses. Job losses do have an impact on the economy of the city, not only on the affected families, but also in terms of the knock-on effect on businesses in the region. The Boardwalk complex has changed the face of the Nelson Mandela Bay beachfront and has become a popular venue for international, national and local visitors. It remains an asset for the city as a popular tourism destination.”
