Fight against casino not over

Sun International must prepare itself for a major battle as the Gold Rush group vowed this week to take its fight against the establishment of the R3 billion mega-casino at Menlyn Maine to the Constitutional Court if necessary.

It was widely reported last week that it seemed that the way for the moving of the ailing Morula Sun casino operation in Mabopane to Menlyn had been cleared after Sun International purchased the biggest obstacle to the move – Peermont Global – in a R9,4 billion deal.

Peermont, the owner of Emperors Palace at the OR Tambo International Airport and several other smaller gaming operations, Gold Rush and 14 smaller civic organisations including schools and churches strongly objected to the establishment of the R3 billion casino, hotel and conference venue in the heart of the mainly residential Menlyn area.

In addition to the purchase deal, Sun International also reached a R700 million agreement with Peermont that should the sale fail for any reason, Peermont would not continue with its objection to the opening of the at least 2 000 slot machine and 60 table casino at Times Square in Menlyn.

Following the deal, Sun International chief executive Graeme Stephens said that the “one remaining objection – that from Gold Rush – seemed less likely to impede progress on the new gaming venue.”

But not so, informed sources close to Gold Rush, formerly Viva Bingo, told Rekord.

“Gold Rush’s chances of succeeding with its objection is not at all weakened by the Sun International/Peermont deal as Gold Rush’s application is based on a different legal principle to that of Peermont,” the source said.

“The matter will be opposed on the grounds that the licence that was originally granted to Sun International was ultra vires in terms of the principle of legality as pronounced upon by the Constitutional Court.

“The Gold Rush application is based on the principle of legality whereas Peermont’s application was a review application in terms of the Promotion of Administrative Justice Act.”

The matter is scheduled to be heard in the North Gauteng High court later this year, probably in the third quarter of the year, as the pleadings have not yet closed and therefore no date for the court battle had yet been set, Rekord was told.

“Should Gold Rush not succeed with its high court application against the decision by the Gambling Board, the matter will be taken to the highest court in the land and to the Constitutional Court if necessary,” the source said.

The Gauteng Gambling Board earlier approved an application by Sun International to have the Morula Sun gambling licence amended and that it could move its operations to Menlyn Maine on the grounds that Morula Sun was failing to deliver on its potential.

The Gold Rush Group currently operates four bingo establishments in Pretoria and each site is licenced to have a number of electronic bingo terminals.

One of its operations at Atterbury Value Mart is a stone’s throw away from where Sun International intends to build the mega casino. Gold Rush Bingo Atterbury currently has 137 machines, while the Kolonnade Centre operation in the north of the city has 155 machines.

In Centurion, Gold Rush has 115 machines at the Mall@Reds and 88 at the Centurion Mall.

The company has several other units in Gauteng and other provinces and employs some 170 people in Pretoria alone.

“At this point we believe that if Sun International commences with the construction of the casino complex it does so at its own peril.

“Should Gold Rush be successful then Sun International will have to demolish whatever construction has taken place regarding the casino complex,” the source said.

Sun International originally planned to have the project completed by June 2017 but several court actions had delayed the start of the project.

If construction however commences, it is expected to be built in a single phase with 2 000 slot machines which could be extended to 3 000, and 60 tables that could be increased to 100, a five-star hotel with 100 rooms and an indoor arena able to accommodate 8 000 people. There will be 2 785 parking bays for vehicles.