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The battle for Midrand's big, big gaming spoils rolls into actionTHABO KOBOKOANE Looks at the parties and their stakes A FURIOUS battle is on the cards for the lucrative Midrand casino licence in Gauteng - potentially South Africa's most profitable gambling location. The gambling industry began its work in earnest this week when Global Resorts was awarded South Africa's first casino licence for a complex in Secunda, Mpumalanga. And while Mpumalanga's gaming board dwells on objections to its preferred bidder, Tsogo Sun, for two other sites in the area, Gauteng is preparing to get into full swing after inviting applications for up to six casino licences in the province. The province is not showing its hand yet on the location and the number of licences it will award. Gauteng can award a maximum of six licences. In boardrooms across Gauteng, however, bidders are fine-tuning applications - detailing sites, developments, job opportunities, and empowerment plans - for the June 17 deadline. The stakes are high. An Ernst & Young study estimates gaming turnover of close to R4-billion nationally with Gauteng accounting for 46% of that. While the province has not yet determined its preferred sites, market logistics suggest that only a few locations are suitable. In all probability and judging from speculation to date, the most likely sites are: Midrand, Vaal River, West Rand (including Soweto and Roodepoort), East Rand (including Benoni, Boksburg and Daveyton), Pretoria East and south and central Johannesburg (including Nasrec.) Undoubtedly the first prize is Midrand - most of the big players in the industry are channelling resources in the battle for Midrand, with investment plans of up to R1-billion each. Sun International is the most vulnerable. Its three casino operations in the North West - Sun City, Morula Sun and the Carousel - could be all but killed by a casino in Midrand. Peter Bacon, managing director of Sun International, argues that if Gauteng places all its bets, thousands of jobs and a large amount of revenue could be lost in the North-West Gauteng's MEC for finance, Jabu Moleketi, says Gauteng will put its own interests first. Sun International is hedging its bets. Together with its partners in African Sun, the joint venture between Sun International and black business, it plans to apply for a licence in Kyalami, near Midrand, for a 100ha, R600-million leisure centre called Snow City. The odds, however, appear stacked against the consortium in view of Sun International's past. It is understood that African Sun also has its eyes on a licence in the Vaal River area and possibly one in Benoni. Johnnic, which recently acquired a 34.7% interest in Gallagher Estate, has unveiled plans to enter the casino race with the Hilton Group. The R1-billion investment includes an entertainment centre and a five-star hotel adjacent to Gallagher's conference centre. Johnnic Properties has emerged as an early front-runner. Old Mutual recently announced plans to seek local and international partners to build a R3-billion shopping and entertainment complex called Zonk'Izizwe. The group revealed that talks had been held with two of the three contenders for a casino licence in Midrand. Tsogo Sun, the joint venture between Southern Sun and black groups, is also in the running for a licence in the area. Jabu Mabuza, Tsogo's head, denies any plans to get into Midrand proper, pointing to the group's planned R1-billion, 30ha interest in Fourways. However, Fourways is close enough to Midrand to present a potential threat to any Midrand casino. It will be a formidable player since it has Southern Sun's backing. Tsogo is also planning to bid for a licence to develop a R700-million complex in Benoni incorporating a casino, and one in Pretoria at the intersection between the N1 and N4, just below the CSIR, with investments of about R500-million. Another planned shopping centre in Midrand, Mo Afrika Mall, is to be built by Randjiesfontein Race Course Investments and Woolworths. It is worth an estimated R2-billion and lies east of the Samrand office development. Randjiesfontein consortium members include black businessman Rufus Maruma, the Hyatt Regency group and Lambros, a casino operator from the UK. A tie-up with Samrand, which is headed Malaysian entrepreneur Dato Samsudin Abu Hassan, could be in the pipeline. Samrand has already detailed plans for a R600-million leisure, gambling and commercial development in Vanderbijlpark. London Clubs International, the UK based casino operator, is believed to be the likely partner with Samrand. Close to Midrand, Stocks and Stocks Resorts is also understood to be putting together a R1-billion bid for a licence in Centurion, on the southern tip of Pretoria. Another area of competition for a licence is the Vaal triangle, close to the Sasolburg, Vereeniging and Vanderbijlpark metropolitan areas. Samrand and African Sun can expect competition in the area to come from another Malaysian-backed bidder, understood to be tying up with Akani Leisure - a joint venture between Casino Austria and several black business groups. Akani Leisure has been linked to a possible R500-million development at Gold Reef City with the Krok Brothers and Magic Kingdom, an international operator. Global Resorts, the successful bidder in Mpumalanga, has proposed a R600-million development in Nasrec, south of Johannesburg, and a another project in Benoni. In the Johannesburg CBD, a consortium made up of Malaysians, the Carlton Group and Wiseman Nkuhlu's Worldwide Africa Holdings has announced plans for a casino, hotel and shopping complex at the Carlton Centre.
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