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South Africa: Online betting pressure forces Tsogo Sun to sell casino

Tsogo Sun has agreed to sell its Goldfields Casino in Welkom, highlighting the growing pressure on smaller land-based casinos as betting, particularly online sports betting, captures an increasing share of South Africa's gambling revenue.

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Key Points
Tsogo Sun has agreed to sell its Goldfields Casino in Welkom after classifying the asset as held for sale
Betting now accounts for almost 70% of South Africa's gambling revenue, while casinos' market share has declined significantly
Casino operators are increasingly exploring diversification strategies as consumer demand shifts towards online betting

Tsogo Sun has announced plans to sell its Goldfields Casino in Welkom, with the transaction highlighting the changing dynamics of South Africa's gambling market as online betting continues to expand.

The decision was disclosed in the group's consolidated annual financial statements for the year ended 31 March 2026. Although the sale had not been completed by the reporting date, the company confirmed that its board had committed to disposing of its interest in Goldfields Casino and Entertainment Centre Proprietary Limited, resulting in the asset being classified as held for sale.

Goldfields is one of the smallest casinos in Tsogo Sun's portfolio, operating 250 slot machines alongside a limited number of table games. The property's carrying value fell significantly during the reporting period, declining from R31m ($1.87m) in 2025 to R2m in 2026 under impairment assessments.

However, the group's financial statements indicate the casino's underlying assets remain valued at approximately R81m, including R69m in property, plant and equipment.

The disposal comes as South Africa's gambling market undergoes a significant shift towards betting products. According to National Gambling Board figures, betting generated R51.9bn, or 69.8% of total gambling revenue, during the 2024-25 financial year. Casinos accounted for R16.6bn, representing 22% of the market.

By comparison, betting represented 23.5% of gross gambling revenue in 2018-19, while casinos generated 60.5%.

The changing market has prompted broader strategic adjustments across the casino sector. Sun International, for example, is expanding the GrandWest precinct in Cape Town with a 22,000-square-metre retail development scheduled to open in 2027, reflecting efforts to diversify revenue streams beyond traditional gaming operations.

In related news, there has also recently been a proposed relocation tax for Western Cape casinos, as well as calls from the South African Bookmakers Association for tighter enforcement against illegal offshore operators, which it estimates account for a majority of the country's online gambling activity.

Good to know

Online sports betting is legal and regulated in South Africa by provincial authorities, while online casino gambling remains prohibited under the country's current legal framework

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