Sun International Land-Based Casinos Return to Growth After Three-Year Decline

Sun International has reported a return to growth across its land-based casino business, marking a turnaround for a sector that had recorded three consecutive years of decline.

The South African gaming and hospitality group reported land-based casino income of approximately R3.4 billion for the six months ended 30 June 2026, representing an increase of 1.5% compared with the same period last year. Gross gaming revenue performed considerably better, rising by 4.4%.

The result suggests that South Africans are not abandoning traditional casinos despite the rapid expansion of online betting and gaming.

New Slot Machines Help Drive Casino Recovery

Sun International has invested heavily in refreshing its casino floors and gaming offering.

During the first half of the year, the company introduced 876 new slot machines and stadium games across its portfolio. It also placed greater emphasis on table gaming and improving operations at its casino properties.

Sun International's share of South Africa's land-based casino market increased by 2.3 percentage points to 49%, giving the group almost half of the country's physical casino market. Gaming capital expenditure also increased to R255 million during the period.

CEO Ulrik Bengtsson described the performance as particularly encouraging given the challenging operating environment.

South Africans Still Visiting Physical Casinos

The return to growth is particularly interesting given the enormous shift towards online gambling in South Africa.

Sun International's own online betting operation, SunBet, continued to grow considerably faster than its physical casino division. SunBet income increased by 35.5% to approximately R1.18 billion during the first half of the year, outperforming estimated growth of around 19% in South Africa's wider online gambling market.

However, the latest figures indicate that online growth does not necessarily have to come at the expense of traditional casinos.

Physical casino properties continue to offer entertainment, restaurants, hotels and live experiences that cannot be replicated by online casinos.

Growth Comes as South Africa Targets Illegal Online Casinos

As we previously reported, South African authorities have stepped up efforts to block illegal online casino operators, reinforcing the distinction between locally regulated gambling businesses and offshore casino websites targeting South African players.

For established operators such as Sun International, a stronger regulated land-based sector alongside continued digital growth could prove increasingly important as the country's gambling market evolves.

Sun International Group Income Reaches R6.6 Billion

The casino recovery formed part of a positive first half for the wider Sun International group.

Group income increased by 7.4% to R6.6 billion, while adjusted EBITDA increased by 2% to R1.6 billion.

Sun International also declared an interim cash dividend of 185 cents per share, up from 172 cents during the corresponding period in 2025.

A Comeback for South Africa's Casino Floors?

Three years of declining land-based casino performance had raised questions about how traditional casinos would compete as more South Africans became comfortable gambling from their phones.

The first half of 2026 provides some evidence that the two markets can grow alongside each other.

Sun International's online business remains the group's fastest-growing gambling segment.