Tsogo Sun Holdings reported flat casino and hotel revenue of R8.2 billion for the year ended 31 March 2026, as structural pressure from the migration of South African consumers to online sports betting continued to weigh on the physical gaming floor business that has historically anchored the group’s earnings.
Adjusted earnings before interest, taxes, depreciation, and amortisation from the casino and hotel segment fell 3% to R3 billion — a modest decline in absolute terms but one that reflects a sustained directional shift in how South Africans, particularly younger demographics, engage with gambling. Slot machine revenue, which typically accounts for the largest share of casino income at most South African properties, has been the primary casualty. Online platforms offer 24-hour access, lower minimum bets, and promotional incentives that land-based casinos structurally cannot match.
The competitive pressure is visible in the performance of Tsogo’s rivals. Sun International’s digital betting platform, SunBet, reported income growth of 75% for the year ended December 2025 — a trajectory that illustrates how aggressively the online segment is capturing wallet share from physical venues. Tsogo’s own online platform, operating under the playTSOGO and bet.co.za brands, has been loss-making until recently, having reached adjusted EBITDA profitability of R50 million in the 2026 financial year after reporting a R15 million loss the prior year.
Gross gaming revenue net of promotional bonusing on the online platform grew 24% to R313 million — meaningful growth from a low base, but still a fraction of the revenue the group generates from its physical estate. Management acknowledged the group had been slow to invest in online capabilities and has now appointed a chief executive with specialist online betting experience alongside several senior hires from the digital gaming industry. System development, product portfolio expansion, and customer experience improvement are identified as priorities for the 2027 financial year.
Gold Reef City, the group’s flagship Johannesburg theme park and casino complex, was separately identified as an area of operational challenge. The group said the property has made progress in stabilising performance and is investing in upgrades to the casino gaming floor and theme park rides. Management indicated that outstanding operational issues are expected to be resolved in the near term, without specifying their nature.
The online betting sector as a whole faces a policy headwind. The National Treasury proposed a 20% tax on online bookmaker gross gaming revenue in the 2025 budget, which the industry has lobbied against on the grounds that it would impair competitiveness relative to unregulated offshore operators. A final decision on the proposed levy has not been announced. Simultaneously, government and the Advertising Regulatory Board are tightening controls on gambling marketing — restricting broadcast advertising windows and increasing scrutiny of digital and social media promotions — in response to growing concern about problem gambling, underage access, and the reach of illegal operators.
For Tsogo, the strategic imperative is clear: the physical casino model, while still profitable, is a maturing business facing structural volume pressure. The group’s long-term earnings profile depends on whether its online operation can scale quickly enough to offset land-based decline. On current trajectories, that is a race it entered late.