South African gaming and hospitality group Sun International has announced it will permanently close two casino properties in the country, the once-iconic Carousel in Hammanskraal, near Pretoria, and the Naledi Casino, located in Thaba Nchu.
According to the South African, both casinos have dealt with escalating costs and declining revenues over the past few years. The economic effects of the Covid-19 shutdown was the final nail in the coffin, the company indicated.
“The inevitable financial burden it placed on us has impacted on our ability to continue subsidizing underperforming properties,” said CEO Anthony Leeming. “It was within this construct that we took the extremely difficult decision to permanently close both properties.”
“Naledi has run at a loss for several years, while the Carousel too has incurred losses for some time,” he continued. “We previously made every effort to turn both businesses around, but these efforts have not achieved the desired results. We are deeply saddened that we have had to take this decision at this difficult time.”
The news was met with criticism from Lucas Ramatlhodi, secretary of the South African Commercial, Catering and Allied Workers Union.
“The announcement by the company pinning things on the Covid-19 pandemic was reckless and irresponsible at best, and as a union, we will be seeking recourse with the courts against this action,” he said. “For now, our concern is our members who are at their lowest point and not even sure what their future holds because many of them were not earning much and practically next to the poverty line.”
