GOLD Reef Casino Resorts has decided to take legal action against M-Net's weekly documentary, Carte Blanche, for what it calls "unjustified" and "blatantly inaccurate condemnation" of some of its rides. The group says the insert on the show led to damages totalling R24m at the group's theme-park rides, which contribute about 4% to group revenue. Combined, Gold Reef City's theme and casino businesses count for as much as 75% on the group's revenue line, which in itself is cause for concern for CEO Steven Joffe's group.

It's no wonder that Joffe was looking to strike a deal with Johnny Copelyn's Hosken Consolidated Investments for a piece of the Tsogo Sun pie, if not the whole pie. Diversification of gaming and leisure assets has become key to the success of the South African industry as investors get jittery on the long-term prospects of a gambling industry that has been buoyant for some time.

Gauteng's gaming market has long been heralded as the country's most lucrative, but it's the Western Cape market that has been bubbling. Now that a possible tie-up with Tsogo Sun has all but faded, Gold Reef's option to buy Gauteng's sixth and final casino licence holder, Silverstar, offers the group a big chance of decreasing its dependence on Gold Reef City. Joffe is cautiously optimistic about future prospects, cautioning that growth is anticipated in the medium term while the future benefits yielded by transactions and the Silverstar opportunity would drive stronger growth in the long term. (S-03.17.06)

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