The Gauteng Gambling Board has approved the expansion and redevelopment of three Gauteng casinos - Silverstar Casino in Krugersdorp, Gold Reef City Casino in Johannesburg South and Montecasino Casino in Fourways.
The redevelopment plans - which will be spearheaded by hotel and casino operator Tsogo Sun - will begin with the Silverstar Casino next week, and are estimated to cost around R480 million.
The redevelopment of Gold Reef City Casino and theme park will follow. According to Marcel von Aulock, Chief Executive Officer of Tsogo Sun, the operator has dedicated R750 million for work on the two casino operations and expects the work to be completed within two years.
Expansions to Offer Extra Entertainment Options
The casino expansions planned for the Silverstar Casino and Gold Reef City Casino include plans for additional entertainment offerings. The Silverstar Casino redevelopment will include a larger and improved casino floor, expanded parking facilities, more eateries, an outdoor events area, cinemas, ten-pin bowling and laser tag games.
The additional offerings will “substantially increase the footfall to the property,” said von Aulock and this would result in the need for a larger casino.
Gold Reef City Casino can expect the addition of cinemas, restaurants and an expanded casino, although plans for this complex still need to be finalized. Additionally, Tsogo Sun is planning improved access systems between areas of the complex, particularly to the casino area.
Montecasino Falls Behind Natural Growth
Montecasino is the flagship Gauteng casino operation of Tsogo Sun. Between 2007 and 2010, the company set aside R1 billion for development and expansion of the casino. Despite this, the casino area of the complex “never kept up with the natural growth in the market,” according to Mr. von Aulock.
Opened in 2000, Montecasino originally had one hotel with 250 rooms. Today, the complex has three hotels with 650 rooms and has seen expansion in the areas of parking facilities, restaurants and office space.
”But, Montecasino’s casino floor is essentially the same size as it has been since day one – it never kept up with the natural growth in the market,” explained Mr. von Aulock. “What we’ve done here is probably got greater capacity than we need right now, but we’ve secured capacity for continued long-term growth. The casino side of it has to keep up with the balance of the development.”
The Gauteng Gambling Board expects the redevelopments to create jobs, increase tax revenue and stimulate growth and investment.