Sun City owner prepares for retrenchments
Sun International has initiated a formal consultation process under section 189A of the Labour Relations Act (LRA), signalling upcoming retrenchments for the group.
Section 189A of the LRA sets out strict processes that must be followed if a company plans to retrench workers.
This consultation process will determine the timeline for potential retrenchments and the terms which Sun International must follow.
The LRA provides that if a company has over 500 employees, section 189A applies to more than 50 planned retrenchments.
“We are implementing a lower-cost, more centralised operating model, resulting in a formal consultation process in terms of section 189A of the Labour Relations Act (section 189A),” Sun International CEO Ulrik Bengtsson said.
It said that this process was being implemented to “enhance operational efficiencies and the profitability of our underperforming assets”.
The plans come as the company saw its income rise by roughly 7.4% year-on-year in its latest interim period.
The large majority of this income growth came from its online gambling segment, which saw 35.5% year-on-year income growth.
While online gaming reported strong growth, Sun International’s other segments saw muted improvements or losses for the interim period.
The group’s land-based casinos saw income grow by 1.5% for the period, while its hospitality sector grew by 2.8%.
Sun Bet, the company’s limited-payout machine (LPM) operator, posted losses of approximately 0.4% for the interim period.
The numbers show that although the group saw strong growth in its income, most of it came from its online operations.
Sun International reported approximately R6.6 billion in income for the interim period, up from its R6.1 billion in the same period in 2025.
Bengtsson said, “There is now clear evidence that the initiatives and operational improvements we have put in place are working and are delivering tangible results.”
The growth of online gambling
Sun International’s growth in its online gambling section follows a larger pattern in South Africa, with concerns growing around the industry.
In 2025, Stats SA found that gambling accounted for over half of household spending on recreation, sport, and culture.
It also noted that bookmaking and online gambling services had experienced significant income growth between 2018 and 2023, outpacing growth in all other activities.
A study by Yazi in June 2026 analysed the impact of gambling on over 1,000 South Africans, with nearly 90% of respondents having gambled in the month leading to the study.
The study found that over half of the respondents had spent money earmarked for essentials, such as rent or transport, on gambling in the last six months.
It also found that 29% of respondents had borrowed money to gamble, with the loans largely informal, from friends or family.
Despite these statistics, 72% of those involved in the study described themselves as “in control” of their betting habits.
The South African Responsible Gambling Foundation (SARGF) also recently flagged online gambling concerns among the country’s youth.
It found that university students sometimes use living allowances from NSFAS to support their online gambling habits.
“Internal intake records indicate that a growing number of students seeking counselling admit to diverting their NSFAS living stipends and book allowances to online sports betting,” the foundation said.
The growth in online gambling in South Africa is reflected in Sun International’s interim results, with the company calling its online gaming section “the group’s growth engine”.
While online gambling has continued to draw scrutiny from various groups in South Africa, Sun International said it is committed to supporting responsible gambling.
“Underpinning our strategy is our commitment to responsible gambling and customer protection as we continue to make progress on embedding responsible gambling principles across all customer channels and operations,” Bengtsson said.
The company also appointed a responsible gambling manager and plans to adopt a responsible gambling charter in the second half of 2026.
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