Michael Farr, spokesman for South African gambling operator Sun International, said earlier today that the company does not want to be drawn into the ongoing dispute regarding the legality of its Morula Sun Hotel and Casino’s license. Sun International plans to relocate the property to Menlyn Maine, which is to be the country’s first green city.
Mr. Farr also explained that the matter is currently being considered by company officials and legal advisers and due measures will be taken for the issue to be solved in orderly manner.
Goldrush Group Management, a bingo licensee, as well as four of its subsidiaries had brought the matter to court, questioning the legitimacy of the casino license, which was awarded by the Gauteng Gambling Board. To be more precise, Goldbrush’s court filing is aimed at testing the legality of the Gauteng Gambling Board’s decision to renew Morula Sun’s license in 2007 under the Gauteng Gambling Act.
Originally, Sun International and its gambling venue had been awarded a license by the North West Gambling Board. It expired in March 2006 and was not renewed since then. Instead, it was replaced by the Gauteng one.
Hotel and casino operator Peermont Global challenged the Gauteng Gambling Board’s decision via a separate court filing.
Back in April, a public hearing was held in Pretoria and the gambling regulator announced that Sun International would be allowed to transfer its casino to the R8-billion Menlyn Maine. Work has already commenced on what is to be known as Time Square and will be part of the 315,000-square-meter luxury precinct. Sun International plans to spend R3 billion on the relocation of Morula Sun.
It is important to note that Goldrush’s and Peermont’s filings addressed separate issues. The first company challenged the legality of the casino license, while the latter challenged the license issuing procedure.
However, Sun International purchased Peermont in April and the latter company was asked to withdraw its filing, in order for the deal to be completed.
Allan Scott, Director of Goldrush, commented that they are planning to amend their own filing so that it addresses not only the legality of the casino license, but also the license granting procedure itself. The executive said that they have decided to do so, as they find the issue “of great public interest.”
