A bill proposed by the Western Cape government in South Africa is drawing criticism from existing casinos that say it would cause a large drop of casino revenues.
The Draft Western Cape Nineteenth Gambling and Racing Amendment Bill, would amend the existing act adopted in 1996 and permit the movement of existing casinos to new locations. The original legislation established in five municipalities and operators were given ten year exclusive licenses. The exclusivity periods are now ending and new proposals would make licenses available in new locations.
Anthony Leeming, chief executive officer of Sun International, said the government proposal would harm his company’s GrandWest Casino, and added, “any of the four licensed outlying casinos will be allowed to apply to the Western Cape Gambling and Racing Board for amendment of their licenses.”
Leeming said his casino could see a 24 percent decrease in its gross profits, with up to 20 percent fewer customers. “The majority of job losses will be from the casino, but a drop in footfall will result in additional and similar job losses in the supporting… operations at GrandWest, as many of these businesses are entirely dependent on footfall generated by the casino,” he said.
An executive for another casino that would be affected, Jacques Booysen of the Tsogo Sun, said: “We have seen the draft legislation and will submit our comments in terms of the process, with comments due by July 31. We are supportive of the possibility of relocating outlying casinos into the metropole as long as this is done in a manner that makes commercial sense for us.”
