There has been a huge uproar in the casino industry as South African casino operators protest against new casino licenses. Casino operators are planning to take legal action if necessary in order to stop the government from issuing an additional casino license.
Possible New Casino License in North West Province
Dr. Rob Davies, the Minister of Trade and Industry, said that the South African government has plans to grant a new casino license for the North West province. When questioned about the new casino license, Dr. Davies cited changes in municipal demarcations.
Dr. Davies explained that since there have been changes in the municipal demarcations, the Sun International-owned Morula Sun Casino is no longer located in the North West province, and is now considered to be situation in Gauteng. He said that the National Gambling Policy Council made the decision that since the Morula Sun Casino was no longer in the North West province, it was possible to issue a new casino license in the region.
Counter-arguments noted that in 2009, the Gambling Review Commission had decided that there should be a limit to the number of casinos in South Africa. It was concluded that it was appropriate to cap the number of casinos in South Africa at 40.
Dr. Davies argued against capping the number of casinos at 40 since the National Gambling Act does leave room to consider increasing the number of casinos in the country. Increasing the number of casinos would be at the government's discretion if and when it is thought that expansion of the industry would be a good idea.
Should the government go through with its plan to issue the additional casino license, it will be the first time since gambling was legalised in 1995 that there will be more than the originally agreed-on number of casinos.
Casino Association of SA to Fight More Casino Licenses
Operators that own South African casinos have no plans to take this lying down. CASA, the Casino Association of South Africa, represents 38 out of the 40 existing South African casinos. The association's Chief Executive Officer, Themba Ngobese, said that CASA has already "commenced with legal consultations" in order to challenge the government regarding the additional casino license.
CASA is arguing that while Guateng now has eight casinos, and the North West has only four casinos, the total number in the country should not be increased. CASA explains that the number and location of casinos was decided based on a study of the populations, economic activity, and various other conditions that exist in each province.