The South African gaming giant Sun International is facing a fight for two of its casino licences. In August 2009 the licence for the Wild Coast Sun, expires and the Eastern Cape Gambling and Betting Board is in the process of advertising for bidders. Near Port Elizabeth the Boardwalk casino licence held by Sun International and partner Emfuleni Resorts is competing with a bid from rival Tsogo Sun in partnership with Embo Project Management. No wonder that the company is looking beyond South Africa for further expansion.

Company CEO, David Coutts-Trotter, was asked by Moneyweb about Sun International’s moves into Nigeria, Egypt and, away from the African continent, into Chile. The company has spent time and money researching possible opportunities in gaming markets abroad, also considering countries such as Russia and the UK before gaming laws were altered. At home there is little possibility of further expansion and the future is looking tougher than in previous years.

The slowing world economy is having its affect on both the local consumer and on tourist numbers. Recent power cuts in the country are unlikely to improve its image and the high crime rate also distracts from the incredible scenery, wild life and great climate that South Africa offers visitors. David Coutts-Trotter commented that figures from the gaming boards around the country show that while October was a fairly good month, November was less so and December was definitely soft.

In Chile Sun International has brought its expertise in gaming to make significant changes to the original plans. After some delays the development, which will have the largest casino in Chile and is best placed to serve the Santiago market, is progressing rapidly. The casino and support facilities should be open by early October and the retail space and conference facilities should be ready by December.

David Coutts-Trotter does not rule out the possibility of further expansion in Chile and other South American countries. In South Africa Internet gaming regulation is being considered by the government and Sun International would be interested in operating online gambling if the conditions were conducive, although it is not thought that the market would be substantial for many years. In the meantime there are the licences at home to defend against rival bids. (E-01.23.08)

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