Western Cape Gambling Law Clauses Suspended Amid Tsogo Sun Cape Metropole Application The Western Cape High Court has declared clauses in the current Western Cape gambling law null for a year while public comments for the proposed new gambling bill are being considered and a new policy is put in place. CASINO OPERATOR Tsogo Holdings had applied to the court for relief for the amendment of its Caledon and Mykonos casino licences so that these casinos would be permitted to operate in the Cape Metropole. In response to the enquiry, the Western Cape Gambling and Racing Board said that it was not competent to consider an application for the relocation of casino operator licences in the Western Cape, with further aversions that the relief sought could
lead to “cannibalism in the industry” as this would affect GrandWest Casino located in the metropole. “Furthermore, according to the board’s explanation, it is impermissible to apply for an amendment of a licence where the intention is to substitute one premises for another.” “The provincial government states that there is yet another reason why Tsogo Sun’s application must fail. It is that the WC Act does not currently permit the relocation of an existing casino operation from one location to another by means of an amendment of the conditions of the license. A fresh licence, specifying the new premises, is required,” court documents read. Premier Alan Winde, a respondent in the high court matter, said the City would not be taking the matter on appeal. “I take note of the outcome in the matter on July 2, 2021, and that the judgment has declared the old Western Cape Gambling and Racing Policy Determinations (the policy) invalid, but which declaration of invalidity has been suspended for a year so that a new regulatory policy for gambling can be put
in place.” “There is already a proposed new gambling bill that has been published for public comment and (for) which comments are now being considered and this judgment will no doubt be taken into consideration in the finalisation of that bill in due course. Obviously on the basis that after we have been able to consider it, we don’t decide to take it on appeal,” Winde said. A public hearing was held last year regarding the Western Cape 19th Gambling and Racing Amendment Bill in which it was also said that “that the Western Cape Gambling and Racing Board is experiencing a shortfall in funding for the current year. As a result of the loss of exclusivity fees paid by casino and gambling machine operators, the board had become increasingly reliant on transfer payments from the Provincial Treasury which faced dire spending cuts. The amendments aimed to make sure that the regulator had an independent source of income to ensure that it was selfsufficient and that gambling was regulated appropriately.”
Betfred Buys Phumelela’s Betting World Betfred has secured a foothold in the South African betting market, purchasing Betting World (bettingworld.co.za) from Phumelela, conducted via the newly established Betfred South Africa brand. REPORTEDLY CARRIED out at a purchasing price of R120 million (£6.1 million), subject to final adjustment relating to the net capital of working items, the transaction was considered officially concluded as of 31 May. The purchase of Phumelela’s online betting vertical is reported to have been disclosed by Phumelela business rescue practitioner John Evans, leading the bankruptcy arrangements of the heritage South African racetrack operator. Last summer, a distressed Phumelela Gaming and Leisure suspended its trading on the Johannesburg Stock Exchange (JSE) as the company filed for South African bankruptcy protection. Fred Dorne’s Betfred initially expressed interest in the financially troubled firm after the Johannesburg High Court placed its assets under bankruptcy protection, prompting the company to
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request additional investors in order to avoid outright liquidation. Agreeing on a business rescue plan arrangement, Phumelela was subsequently forced to place its South African racetracks for sale by creditors. Betfred’s original intent was to acquire all Phumelela racetrack properties for R875to-925 million (€44-46m) in a bid that saw the Manchester bookmaker compete against a fund owned by racing enthusiast Mary Oppenheimer-Slack and her daughter Jessica Jell –members of South Africa’s richest mining family. Despite its significantly larger rescue offer, Betfred’s bid was refused to be reviewed by auditors, who had agreed to back the Oppenheimer fund as an existing creditor of Phumelela’s business. South African business news sources
have branded Betfred acquisition of World Betting as a transformative deal for South Africa’s sports betting landscape – which to date has been strictly fenced for domestic incumbents. As yet, Betfred has made no official statement on its acquisition of Phumelela’s World Betting asset, disclosed by rescue practitioners. Apart from its UK operation, Betfred has an online casino and betting product in Spain and, in its first foray into the US, has launched a sportsbook at Grand Falls Casino. The arrival of Betfred in the SA market may not be good news for established bookmaking firms such as World Sports Betting and Hollywoodbets because Dorne will probably want to introduce a number of special offers to punters, a common practice in the UK. June / July 2021
