Battle brewing over new casino licence

Brian Benza
Staff Writer | Tuesday September 21, 2010 00:00

Three months ago, the Casino Control Board of Botswana awarded a fourth licence in Gaborone to a consortium that includes South Africa's Gold Reef Resorts, the MD of Botswana-listed property group, RDC Guido Giachetti, and local businessman Moitsheki Lekalake, who is the holder of the licence.

Now, led by gaming and hotel giants Peermont Global and supported by Sun international and Moonlite Casinos which runs the casino at Gaborone Hotel, the old players want the awarding of the new licence to be reviewed and could mount a legal challenge in the High Court to achieve that. While no official comment was forthcoming from local hotel and gaming outfits, Business Day of Johannesburg quotes the parent company of Peermont Global Botswana, Peermont Global, as saying there were irregularities in the awarding of the licence and that they will contest it.

'Gaborone is a small city with only about 200, 000 people and we don't believe there is space for another competitor,' Peermont CEO, Anthony Puttergill, said last week.

Sun International, Moonlite and Peermont had objected to the granting of the licence by the Casino Control Board and were 'taking it a step further by going to the High Court to have the licence reviewed,' he told Business Day.

A source close to the developments confirmed to Mmegi that the three casino licence holders will soon file papers with the High Court. 'We believe we have enough evidence that there were some irregularities in the awarding of the licence,' said the source. 'We want that licence revoked.'

Asked for a comment, Lekalake, who is the first Motswana to hold a casino licence, said there was nothing irregular about the awarding of the licence and challenged Peermont and Sun International to come up with the evidence. 'I have been trying to get this licence for the past 10 years and my efforts were being frustrated,' Lekalake said.  'We submitted everything to the Casino Control Board and they awarded us the licence fairly.

'I believe they are just running scared because of the competition they will get from us. For a long time, the two major players have had cosy relations and have been acting more like partners rather than competitors.'

An operating company called Workman Holdings - in which Gold Reef has a 50 percent stake and the remainder is equally owned by Giachettii and Lekalake - will run the casino. Gold Reef Resorts said it would invest up to R30 million in building of the casino this month.

The new Masa Towers, which will comprise a 160- roomed hotel managed by Holiday Inn, a shopping mall, a cinema and the casino, which is being constructed by Giachetti's RDC Properties, is set to open next year.