Casino for Somerset West strongly opposed

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18-07-2024
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News 24
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• At a public hearing, Somerset West residents voiced strong opposition to Tsogo Sun's proposal to relocate its Caledon casino to the Helderberg area.
• The session, organised by the Western Cape Gambling and Racing Board, featured presentations from Tsogo Sun highlighting potential economic and social benefit.
• Despite assurances from Tsogo Sun representatives, objections centred on economic disruption, gambling-related harms, and proximity to schools.

 

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Residents endured adverse weather conditions to have their say, mainly in opposition to the proposed casino for Somerset West, at a public hearing on Friday (12 July).

The session was held at Charles Morkel Hall in Strand and called by the Western Cape Gambling and Racing Board, which is reviewing Tsogo Sun’s application to relocate its Caledon casino from the Overberg to the Helderberg.

Earlier this year the board published an official notice inviting interested and affected parties to make oral submissions at the proceedings to apply for the opportunity by Monday 27 May.

It followed objections and comments received during a public-participation period for the relocation application last Augus.

Furthermore, questions and comments were also allowed by those attending who signed the register on the morning.

Plan in the pipeline

The public hearing started with a presentation by Rajesh Dullabh, Tsogo Sun’s director for Business Intelligence and Analytics. It focused on the proposed construction of a stand-alone casino complex as a regional entertainment hub with multiple economic and social benefits.

Dullabh offered insight into the R1,1 billion dual investment strategy, which comprises the phased construction of a casino – initiated with a 10 000 m² development (in phase 1 and 2) and expanding to 15 000 m² (in phase 3) – and the refurbishment of the existing Caledon complex into a resort destination. The latter, which is estimated at R70 million, will see the entire redevelopment of the hotel and spa (to a potential four-star), thermal mineral-water spring amenities, conferencing, event spaces, restaurant and bar offerings, outdoor activity centre, and supplementary gaming area (subject to licensing).

Dullabh said the proposed Somerset West casino will serve as a cornerstone for a new entertainment node, realising the vision to establish the Helderberg as a dynamic entertainment region, while enhancing interactions between the two developments and fostering a vibrant local economy. “We are committed to community engagement and economic development, including preferential procurement from B-BBEE compliance and locally based suppliers,” he said.

Lynton January, general manager of the Caledon complex, said Tsogo Sun is committed to corporate social investment (CSI) and will focus funding to education, sport, tourism marketing and creating a sustainable community development. He said R15 million has been earmarked for improvements to deserving beneficiaries, including local schools and organisations in Lwandle and surrounding areas within the first year of opening.

January shared a video featuring leaders of local schools, which offered insight into the challenges the educational institutions face and what much-needed support would mean.

Moreover, January noted the intention to collaborate with provincial government and spend a further R40 million on improvements to the N2 corridor and townships. He further highlighted the employment benefits of the proposed development, including additional job opportunities, outsourcing of specific functions, tenant employment and indirect supplier advantages.

Location, location, location

Dullabh further shared that six of the 22 ha of the earmarked site will be developed to accommodate the proposed casino. The proposed location is within the urban area on Portion 29 of Farm 794, which previously formed part of the Somerset West Golf Course. It is seen as ideal for its accessibility and potential to allow for expansion.

In 2018, an application was made to rezone the tract of land on the corner of the N2 and R102 – to allow for the development of a casino and a 120-room hotel – was made to the City of Cape Town. The Municipal Planning Tribunal initially approved the application, but after appeals, the final approval was only granted by the City’s Appeal Authority in July 2020. The decision, based on comprehensive impact assessments, is valid for five years.

As part of the development concept, Dullabh assured safety and security as the stand-alone destination will be separated by roads with direct access control, given that there will be a single entry point. This will be boosted by 24-hour manned surveillance and security visible on-site.

Dullabh further divulged that the casino would be the first uniquely green development of its kind with sustainable water and power generation resources.

Penny for thoughts

Somerset West resident Pieter Human raised serious reservations about the proposed development, expressing his disappointment over restrictive access to essential information and that the presentation, while polished and politically correct, glossed over significant economic and social concerns.

Human said research suggests casinos often harm local economies by redirecting spending away from small and medium businesses, potentially leading to broader economic disruptions and job losses not compensated for by the projected employment creation.

He said casinos disproportionately attract middle to lower income individuals, who are probably the most vulnerable to the pitfalls of gambling, ironically the same demographic Tsogo Sun aims to support through CSI.

Human believes the casino will not significantly draw tourists or external capital, further undermining the argument for its economic viability. “ . . . the mere fact that it will be viable doesn’t mean we should allow it. A liquor store on every corner will also be viable, but it doesn’t mean we should allow it.”

Somerset West resident Pieter Human during an oral submission in objection to the proposed relocation of the Caledon casino to the Helderberg community at the public hearings.

Another resident, Cameron Green, said for the relocation application to be considered viable, the casino must generate a gross gambling revenue (GGR) of about R1 billion, considering its CSI commitments.

Response to assertions

Geoff Budlender, legal representative for Tsogo Sun, responded to the objections, emphasising that there is only one license available, and the casino will either operate in Caledon or Somerset West.

He also noted that many objections are general criticisms of gambling and casinos, which are deemed irrelevant to the board’s regulatory role, as gambling is legally sanctioned.

“Many people may not like or understand it, but there will be gambling, there will be a casino – the question is where it should be located.”

Budlender emphasised the development’s economic benefits and dismissed fears of increased crime, citing positive feedback from Caledon residents.

He assured that infrastructure enhancements for sewage and roads are planned with stringent safety measures to prevent minors’ access to gambling facilities.

Budlender also refuted claims about capital displacement and the adverse impact on property values, noting the shift in gambling trends towards online platforms and challenging stereotypes about gambling demographics.

He further countered the allegations concerning the GGR figure, stating that R400 million is necessary, and the license holder generates revenue from various sources.

Further questions and comments

A resident questioned the inclusion of local schools in the video by Tsogo Sun, given that the proposed development would be in close proximity to two schools – one of the solid grounds for objection.

He described the CSI presentation as “nice and fluffy”, criticising it for lacking substantive insight due to the absence of concrete figures regarding their achievements.

Another resident criticised the development’s ability to attract people to the basin and questioned the job creation figures shared.

Chris Whacker, a long-time resident, urged the board members to consider not only their legal obligations but also common sense and community values. He strongly recommended rejecting the licence transfer, emphasising that the Helderberg does not need a government-supported gambling facility near schools and vulnerable communities.

“When you spend money at a grocery store, a furniture store, or even a petrol station, you receive something tangible in return. However, when you place your grant money into slot machines, the result is often big problems.”

Another legal representative for Tsogo Sun said none of the schools represented in the video were approached before or during the commenting process, and could have objected to the proposed development.