South Africa is a mature casino market with a growing online gambling industry. The country’s casino industry was established in 1996 with the passage of the National Gambling Act, allowing for the licensing of casinos. Prior to this, all forms of gambling, except horse racing, were illegal. Despite its initial illegality, there were already nine casinos operating before 1996, with Sun City being the most well-known. Since the passage of the Act, the number of casinos has grown rapidly, reaching 38 today, with three additional licenses that have not yet been utilized. These 38 casinos offer a total of around 21,000 slot machines and over 800 table games. The majority of the casinos, 36 in total, are operated by just three companies: Sun International, Peermont, and Tsogo Sun.
The arrival of the Covid-19 pandemic had a significant impact on South Africa’s casinos. Following the lead of other nations, the country implemented strict measures to contain the spread of the virus. This resulted in the temporary closure of all casinos, hotels, and related activities from March 2020 until June 2020. When reopening was allowed, it came with various restrictions and reduced operating hours. Casinos and hotels had to close by certain times, and the sale of alcohol was prohibited. Social distancing measures were also implemented, limiting the number of people allowed inside venues. In July 2021, due to an increase in Covid-19 cases, casinos had to close again, with limited operating hours reinstated. It was not until November 2021 that casinos were able to operate under normal conditions.
During the pandemic, both Peermont and Sun International took steps to support their employees. Wages were reduced across the board, and measures were put in place to provide emotional support to staff. Peermont also implemented a cashless player wallet system, allowing customers to easily access funds and play without the need for cash or interactions with cashiers. The pandemic allowed operators to make changes and improvements in their businesses, such as implementing new software and enhancing the overall player experiences.
Since the recovery and reopening of the casinos, there has been a strong desire from people to engage in social activities and enjoy entertainment outside of their homes. Hotels, restaurants, and conferencing services have seen significant growth as people seek normalcy and social interaction. Sun International has focused on creating exciting activations and events to attract customers back to its properties. The higher-spending players have shown quicker return to the casinos, while the mass market has been slower to bounce back.
Lessons learned from the pandemic include the importance of communication, staff engagement, and openness. Operators have recognized the need for transparent and frequent communication with employees, along with being available and accessible. The pandemic also prompted a reevaluation of traditional operating procedures and a focus on innovation and adaptability in the industry.
