The process of establishing two more casinos - which jointly will cost at least R115-million - in the Eastern Cape has begun with the Eastern Cape Gambling and Betting Board calling for bidders to submit applications by June 12.
This will complete the province's quota of five casinos. The first three are Port Elizabeth's Boardwalk Casino & Entertainment Centre, Hemingways Casino in East London and the Wild Coast Sun Hotel, Casino & Country Club.
Provincial gambling board chief executive officer Gonza Mati said on Monday that licences would most likely be issued in February next year.
The board has published details of the two licences, which will probably be on a far smaller scale than the three already in operation.
This is due to lower economic activity and wealth in the regions targeted, which are Area 3 and Area 4, according to the determination of economic regions made in 1997.
Area 3 covers the magisterial districts of Albert, Aliwal North, Barkly East, Cathcart, Cradock, Glen Grey-Cacadu-Lady Frere, GraaffReinet, Herschel, Hewu-Sada-Whittlesea, Hofmeyr-Hofmeyer, Indwe, Lady Grey, Middelburg, Molteno, Queenstown, St Marks-Cofimvaba, Sterkstroom, Steynsburg, Tarka-Tarkastad, Venterstad, Wodehouse, Xalanga-Cala and Ntabathemba. Area 4 includes Elliot, Elliotdale, Engcobo, Libode-Maclear, Mqanduli, Nqgeleni, Port St Johns-Mzimvubu, Qumbu, Tsolo and Mthatha.
Each licence requires the development of a complex that includes a casino with gambling machines and tables, a hotel, conference facilities, restaurants and a child-minding facility and play area.
The licence for Area 3 requires a development of at least R50-million, including a 30-room hotel, while Area 4 requires a development of at least R65-million with a hotel of at least 40 rooms.
Mati said the winning bidders were welcome to exceed these development costs, subject to approval by the board, but would have to meet these basic standards.
The licences also require specific social and empowerment investments that would see at least 30% of income or investment going to Eastern Cape historically disadvantaged individuals or groupings.
Mati was confident that enough capital and interest existed to meet these requirements.
Casinos traditionally generate healthy income for both owners or operators and gambling boards.
The three existing casinos attracted collective income in the 2004-2005 financial year of R663,6-million, generating R46,3-million in gambling taxes.
Mati said the licence fees for the two new casinos would be around R200-million.
Eastern Province Herald
Publisher: I-Net Bridge
Source: I-Net Bridge
