Tsogo Sun bid for Sun International assets
Click For HomeBookmark This SiteMake Gambling SA Your Home PageSitemapXML News Feed
Gambling South Africa
Club SA Casino
National Lottery Results
PowerBall Results
SA Online Casinos News
SA Sports Betting News
SA Horseracing News
SA Online Casinos Reviews
Casino Tropez NEW
Slotsmagic Casino NEW
Slotsheaven Casino NEW
7 Regal Casino NEW
EU Casino NEW
Sloto`Cash Casino
Vegas Red Casino
Thunderbolt Casino
SA Casino Guide
South African Online Casinos
South African Online Gambling
South African Casino Bonuses
South African Casino Reviews
SA Casino Resorts
Emperors Palace Casino
Gold Reef City Casino
Carnival City Casino
Grand West Casino
Emnotweni Casino
Windmill Casino
Sun City
The Carousel
Suncoast Casino
Meropa Casino
Flamingo Casino
Wild Coast Sun
SA Sports Betting
South Africa Sports Betting
Soccer Betting
Cricket World Cup Betting
Super 15 Rugby Betting
South African Horseracing

Tsogo Sun to Bid for Stake in Sun International

Published on 17 Apr 2015 at 09:42

April 17 - South African gaming operator, Tsogo Sun, has bid for a stake in rival Sun International assets. The Tsogo Sun bid for Sun International assets takes the form of 40 percent stake in two casinos owned by Sun International - Grand West Casino in Goodwood and Golden Valley Casino in Worcester.

The two companies have now joined forces in an attempt to persuade the Competition Tribunal to ignore the recommendations of the Competition Commission and to allow the market-share agreement to go forward.

The Competition Commission Objection

The Competition Commission has recommended that the Competition Tribunal prohibit the deal with the commission's chief economist, Liberty Mncube stating that it would not "be good for competition" as it would provide Tsogo Sun with a stake in all five gambling licenses in the Western Cape.

Mncube stated that the deal would result in higher prices and reduced quality of services. The commission further argues that the profit realized by Tsogo Sun from the two casinos would surpass its earnings from its Caledon and Mykonos casinos, eliminating any incentive for it to employ aggressive competition.

Rafik Bhana, the commission's advocate, claimed that the true reason behind the deal is "the need to curtail greater competition, which is on the horizon as a result of certain regulatory changes."

Two Rivals Join Forces

Sun International and Tsogo Sun, major rivals in the South African gambling market, have joined forces to persuade the tribunal to allow their deal to go forward. There has been some speculation about why Sun International would allow its major competition to gain considerable exposure to the Western Cape market.

This became clearer last week when a commission expert suggested that Tsogo Sun is planning to sell a 25 percent stake in its Caledon Casino license to Sun International once it has relocated the casino to the Cape metro area.

The Western Cape government recommended that the casino be moved into the city where 80 percent of the province's gamblers live, in order to increase competition. Previously, the five casinos in the Western Cape had exclusivity which allowed them to operate in a specific area without competition. This exclusivity deal has essentially ended (except for Golden Valley), making it possible for rival casinos to open.

This deal appears to be an attempt to prevent serious competition. The tribunal hearing began this week and will continue through next week with closing arguments planned for May 13.

Related Gambling Articles:
Sun International Acquires Casino Competitor
Minister Recommends Review of National Gambling Board
Pay Dirt Named Springbok Casino Game of the Month
Springbok Casino is Celebrating the Release of its Latest Game
Important Notice!
Everything you will find on this site is for informational purposes only. We cannot be held responsible if your use of this site and its content results in any consequences, legal or otherwise. It is critical that you, the reader and visitor, understand any laws that are applicable to your country as it relates to online gambling before you engage in any practice that is deemed to be gambling.
For further explanation click here.
Best Rand Casinos
Rand Casino.com Casino.com
Widely regarded as the best online casino to serve the South African market. Brand new R26,000 sign up bonus.
New Rand Casinos!
Yebo Casino Yebo Casino
New Rands Casino - R12,000 sign up bonus.
Slotsmagic Slots Magic Casino
Jaw dropping games - R25,000 sign up bonus.
Euro Maxplay Euro Maxplay Casino
New Rands Casino - R5,800 up bonus.
Casino Midas Casino Midas
Amazing games - R15,000 sign up bonus.
Springbok Springbok Casino
New RTG Casino - R11,500 sign up bonus.
Club 777 Casino Club777 Casino
Huge jackpots to tackle with the R6000 sign up bonus.
Recommended Slot Games
X MenX Men NEW
Playtech now offer the amazing Marvel Super hero slots, all with progressive side jackpot.
Gold Rally slotsGold Rally
The most frequently won jackpot slot online - often drops for over 10 million Rands.
Lotto Madness slotsLotto Madness
Certainly one of the best looking slots with a multi million Rand jackpot.

Tsogo Sun bid for Sun International assets

© GamblingSA 2002 - 2016 Responsible Gambling Privacy Policy About Us Contact Us Over 18's Only