While Sun International awaits the verdict of the Eastern Cape Gambling and Betting Board (ECGBB) over its bid to keep Boardwalk casino operating by being granted the Nelson Mandela Bay casino licence presently up for grabs, its Wild Coast Sun casino – Transun was granted a 10-year licence extension earlier this year – will benefit from a R340 million (US$42 million) extension and refurbishment programme. Transun is 70% owned by Sun International and 30% by the Mbizana Development Trust.

News broke about the renewal of the Transun casino licence in March despite opposition from King Mpondombini Sigcau and questions over compensation for families displaced under the old regime, when the Wild Coast was first built, and whether Sun International’s black empowerment partner, Mbizana Development Trust, was actually benefiting local communities. So far dividends paid to the Trust have been used for acquiring the 30% shareholding, and will continue until 2012.

According to Sun International, based on current feasibility the Trust should gain around R142 million (US$17.6 million) in fees and dividends over the term of the licence for the benefit of local people. The Wild Coast extension and upgrade will also provide some 3,000 indirect jobs and 660 direct jobs. Service providers and concessionaires who do business with the Wild Coast Sun employ an additional 1,000 people. However, the Pondoland monarch will continue to contest the licence and plans to object before the present licence expires at the end of this month.

Last Wednesday the ECGBB chairman Sipho Majombozi officially awarded the 10-year casino licence to Sun International at a function at the Wild Coast Sun. The fate of the Boardwalk casino will not be known until next month – the EGCBB recently announced they needed more time to deliberate the advantages of the two rival proposals from Sun International and Embo Management Group. (E-08.18.09)

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