The Eastern Cape Gambling and Betting Board has called for bids to be submitted by 12 June for the final two casino licences in the province. Three casinos are already in operation and the last two will be awarded in Area 3 and Area 4 of the economic regions. The new licences are expected to be issued in February 2007.

Minimum investment in the casino complexes is R50 million (US$7.9 million) in Area 3 and R65 million (US$10.3 million) in Area 4. Each casino development must include a hotel, conference facilities, restaurants, play area and child-minding provisions. The two projects will be on a smaller scale than the three existing properties, owing to being in areas of less economic activity. The licences are also dependent on a minimum 30% of income or investment going to historically disadvantaged individuals or groups.

Sun International holds around 43% of gaming revenue in South Africa and operates two of the Eastern Cape casinos: Boardwalk Casino and Entertainment World in Port Elizabeth, and the Wild Coast Sun overlooking the Indian Ocean between the Umtamvuna and Mzamba rivers. Hemingways Casino in East London is operated by Tsogo Sun. In the 2004-2005 financial year, these three casinos in the Eastern Cape generated R46.3 million (US$7.3 million) in gambling taxes from income of R663.6 million (US$104.7 million).

Although the areas for the two new licences will probably dictate smaller casinos than the existing three, the success of the South African casino market should ensure plenty of interest in the bidding process from investors. The licence fees will be in the region of R200 million (US$31.4 million). (E-03.24.06)

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