Casinos are gambling on making a cool R2- billion a year – but they’ve had to go to the ends of the earth to get people there
Mary Dover
The race is on for five of the six licensed casinos in Gauteng to be complete in all their glory. It’s official: kitsch, glitz and glamour have migrated from Las Vegas to home in on the City of Gold.
Carnival City was the first Gauteng casino to open its doors in October last year and Gold Reef City Casino was launched in March. Two of the others are well on their way to completion by the end of the year and one is lagging behind because of a shareholder dispute. The remaining Gauteng licence is still subject to a legal dispute.
In keeping with their global counterparts, each operator is trying to outdo the other with the most elaborate theme to capture the hearts and pockets of Gautengers.
Developers of these new casinos have had to commit to a certain amount of community investment and tourism development.
To apply for a licence cost the bidders a non-refundable fee of R570E000. Each complex is worth more than or close to R1-billion, so make no mistake this casino business is big bucks.
And in return, the investors expect to make even bigger bucks. Gauteng has the highest population in South Africa and is also the richest province. It is estimated that casinos in the province could generate R2-billion a year, which is half the expected national expenditure.
Australians are religious about gaming and they spend 3% of their disposable income on it. Local predictions of total gaming spend range between 2% and 2,5%. However, according to analysts, these expectations in the first year have not been met.
The gaming board released figures earlier this year that indicate that in total the Gauteng casino win (money spent at the casino) was R1,84-billion in the five casinos in 1999. This equates to about 1,1% of disposable income.
So right now the war is on to attract punters through high pay-out ratios.
The days of old biddies getting arthritis in their shoulders from playing the one-arm bandits are over. Modern and high-tech, the new computerized gaming machines will be a challenge for committed pensioners.
Smart card gaming is a new “coinless” way of playing slots launched by Sun International. The danger lies in the fact that this smart card can also be linked to your credit card.
Only time will tell if we have the disposable income to support all these ventures and we don’t know what the effect low pay-out machines and the National Lottery will have on levels of gaming.
Gautengers have a choice of five casinos, but who owns what and what are they offering the general public?
Montecasino, Fourways
Owners: Tsogo Sun, a joint investment between Southern Sun and Tsogo Investments. Las Vegas-based MGM Grand will run the casino.
Theme: Tuscan.
Facilities: “Shoppertainment” is the name of the Montecasino game and 24E000m2 is allocated for retail and family entertainment; platinum class cinemas, which entitle ticket holders to VIP treatment – business class seats and complimentary drinks to name a few; a 300- seater theatre (rumour has it that it will be run by Pieter Torien); a five- star Palazzo Inter-Continental hotel (246 rooms); and Lego Lab (a virtual reality store) is just one example of kids’ activities.
Comment: We’ve all driven past this massive construction site, where traffic has been re-routed to accommodate this towering Babel of northern Tuscan architecture. The prime site alone will be a magnet for Sandtonites to strut their stuff.
Opening: December 2000.
Caesars Gauteng, Kempton Park
Owners: Global Resorts, a South African company, owns 25% – the rest is owned by Caesars World (operators of Caesars Palace in Las Vegas) and other local empowerment companies.
Theme: Roman.
Highlights: The flight of the imagination starts with The Charioteer, a mammoth 6m- long, 4m-high, 4m-wide bronze statue of four galloping horses pulling a chariot that will greet guests at the focal point of the casino. For some reason, ceilings are very elaborate in casinos. This one boasts 7km of Tivoli lighting and an 80m stained glass dome. Cleopatra’s Barge will be a draw card on its own. It’s an action buffet restaurant built in the form of an Egyptian barge seating 240 people. With its elaborate sky mural and gilded bronze Egyptian mummies, it promises to be an adventurous dining experience.
In the spirit of cultural tourism, the new South Africa Museum will celebrate South Africa’s history and incorporate wax works and high-tech audio-visual presentations.
Comment: This development has the edge of being one of the only casinos in the world to be so close to an international airport. It is probably the most decadent venture of all and it is built on the historic site of the Codesa negotiations.
Opening: Full facilities launch in October 2000.
Emerald Safari Resort, Vanderbijlpark
Owners: The Emfuleni consortium, a joint venture between Malaysian-based Samrand, London Clubs International and the Western Vaal Metropolitan Council.
Theme: Cape to Cairo.
Highlights: A 3E000m2, climate controlled Aquadome for water-based entertainment, aimed at both young and old visitors; a 276ha game park, incorporating a wildlife centre and a breeding station for endangered wildlife; a Moroccan-style souk (market); and a cultural village.
Comments: This one is lagging a little behind time-wise due to a shareholder dispute. It is probably also one of the most ecologically sensitive projects and one of the few that has an inherent African theme and that focuses on “edutainment”. The game drive opportunity and short distance from Johannesburg (one hour) should attract foreigners and day trippers.
Opening: June 2001.
Gold Reef City Casino,
Owners: Local company Gold Reef City Casino Resorts. Casinos Austria International will manage the casino operation.
Theme: Old gold-mining town.
Highlights: The legendary Three Ships restaurant, which became defunct after the closure of the Carlton hotel, has been resurrected at Gold Reef City Casino; a Globe Theatre, based on Johannesburg’s Globe Theatre of the 1890s, which hosted the first moving picture shows in South Africa; and the Gold Reef City Theme Park.
Comments: Gold Reef City Theme Park is already an established tourist attraction in the province. A tribute to the history of Johannesburg, this one scores a lot lower on the ridiculous scale.
Opened: March 2000.
Carnival City, Brakpan
Owners: Led by Sun International, which will operate the gaming, Afrisun consortium is building this entertainment park.
Theme: Carnival/Circus.
Highlights: Includes Barbie Doll World and a range of high-tech and cosmic kiddie experiences; and Pocket Park, a fun zone that includes a rollerblade track, rock climbing, go-carting and adventure golf.
Comment: The dcor is spectacular, true fantasy: larger than life-size harlequin light fittings, pirates hanging out of eight hot air balloons above the casino floor, and so forth. Situated in the heart of Johannesburg’s East Rand, this is where researchers say blue-collar workers have money to spend.
Opened: October 1999.