The approval by the Gauteng Gambling Board of Gold Reef Resorts' acquisition of a 100% financial interest in Silverstar on the West Rand, together with its BEE partner Akani Leisure Silverstar, has further entrenched the group's foothold in the Gauteng gaming market, the largest and most lucrative in the country by region.
 
This follows earlier announcements by the group of the purchase of a 92% stake in Silverstar along with Akani Leisure Silverstar, now complete with each party owning 50% of the new casino. Importantly the Gauteng Gambling Board further approved the termination of Silverstar's management contract with Century Resorts, paving the way for GRR to take over as casino management in line with strategy.
 
Development on Silverstar has already commenced with total capital expenditure expected to be approximately 1.1 billion rand. The casino will have 700 slot machines and 30 tables as well as a hotel, multiple restaurants and entertainment and conference facilities. Construction is scheduled to be completed early in 2008. GRR anticipates that the casino will contribute strongly to the group's bottom line.
 
Being also part of the consortium named as the preferred bidder for the Queenstown Casino Licence in the Eastern Cape is a boost for GRR's national expansion strategy. The group holds a 25% stake in the licence applicant, Lukhanji Leisure. The proposed casino will see capital investment of approximately 95 million rand into 180 slot machines, six tables, restaurants, a sports bar and a 32-room hotel with conference facilities.
 
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge