By Taralyn Mclean

Two East London hotel bosses have joined forces in a bid to oust Hemingways Casino as the only legal gambling centre in the city.

The first and only licence which allows gambling in the city was issued to Hemingways Casino, applied for by operators Tsogo Sun Emonti, in 2001.

It expires in September next year, and a brand new licence, to be awarded in October this year, is up for grabs.

The battle for the new licence will be a two-horse race between Tsogo Sun Emonti and a group whose main players include the Osner Trust and Sam Nassimov of Premier Hotels.

If Hemingways loses its licence, East London’s beachfront is set for a revamp with a new casino and entertainment complex planned to be sandwiched between the Regent Hotel and the Kennaway, in front of the East London International Convention Centre.

Whoever wins the licence will have a year to prepare for the new licence period, which starts in November 2011.

If the licence is not re-awarded to Hemingways, there will be a “dead” period from October 2011 to November 2011 when there will be no gambling in the city at all.

The Dispatch has seen both applications for the new licence.

For Hemingways, winning the new licence will mean acting on promises in their application, including a R400 million revamp of the current casino and the construction of a multi-purpose pavilion on the premises.

The other application, applied for by lead applicant Avril Kaschula of The Osner Trust, is on behalf of the yet-to-be-formed Ubukhosi Leisure (Pty) Ltd, trading as Cascades Casino Emonti.

The Osner Trust has a 30 percent share in the application, matched by a 30% share by Summer Season Trading 120 (Pty) Ltd, a major shareholder of which is Premier Hotels and Resorts, owned by Sam Nassimov.

Ubukhosi Gaming and Leisure, which represents the King Sandile Trust, holds the remaining 40%.

If the licence is awarded to Ubukhosi, an outside casino operator, KaiRo International, will be brought in to open and manage the casino for an initial five-year period.

Thereafter, Ubukhosi would own and manage the casino independently.

The application shows they have a year-long plan of construction to build a R92 million casino, R101 million parking area, and to refurbish the Kennaway Hotel to the tune of R33 million.

Contacted by the Dispatch for comment, all parties involved refused on the grounds that anything said to the press may jeopardise the bid process.

Eastern Cape Gambling and Betting Board chief executive Mabutho Zwane also said it was difficult for him to comment on the matter as the process of adjudication was still under way.

He invited the community to a public hearing at River Park, set down for September 8 and 9, where the two bids would be presented to the board.

On the applicants, he said: “From our side, we are happy there is interest in East London and that there is more than one bidder.”

Border-Kei Chamber of Business chief executive Les Holbrook said: “It’s a strategic move for the two (Premier and Osner) to have combined forces.

"If you are going to move in that space you have to have the resources and experience, so this partnership makes sense.”

Source: Daily Dispatch