Sun International, one of South Africa’s major gambling operators, announced that preliminary construction work has begun on the new site of Morula Sun Hotel and Casino, although it is currently locked in a legal battle with bingo licensee Goldrush Group Management.
The latter company objected to the Gauteng Gambling Board’s decision to renew the license of the gambling property back in 2007. Sun International had been granted a casino license for its Morula Sun property by the North West Gambling Board. However, it was valid up until 2006 and was replaced by one issued by the Gauteng regulator. Last year, Goldrush brought the matter to court, questioning the latter regulatory body’s decision.
The legal dispute is taking place at a time when Sun International is relocating its casino from Mabopane to Menlyn Maine, which is to become the first green city in South Africa. As mentioned above, the operator has already started work on the future Time Square casino.
Michael Farr, spokesman for Sun International, said that preliminary work on the site would be carried out in two phases. He also pointed out that phase one, which included planning, has been completed. The operator has now entered the second phase, which will include the preparation of the casino site. The construction itself is expected to take up to 30 months.
Sun International has previously pointed out that once completed, the property would generate more than R1.7 million in gaming and other taxes in the first five years of operation. The total amount that would be contributed to both the local and national governments is expected to reach R2.7 billion over the same five-year period.
Time Square is to feature as many as 2,000 slot machines and 60 gaming tables. In addition, it will also offer to visitors a 5-star hotel, a conference hall, retail as well as food and beverage options. The relocation of the property is expected to cost about R3 billion.
Although the rezoning of Morula Sun had met some strong opposition from residents and gaming companies, those have promised that they would no longer try to prevent the project from being completed.
It seems that Goldrush has remained the only company that would continue to oppose the relocation. It amended its filing to the court and it is now challenging both the granting of the casino license and the proposed transfer of the property to Menlyn Maine. A court date has not been set yet and this is why Sun International has decided to commence work on the project.
