South African casino operator Tsogo Sun Gaming (TSG) is looking to enter the online gambling market as its land-based venues deal with COVID-19 shutdowns.  

This week, TSG, which was spun off from the hotel operations of Tsogo Sun Holdings last year, reported revenue of R11.7b (US$708.8m) in the 12 months ending March 31, up a mere 1% from fiscal 2019. Earnings rose 3% to R4b but profits fell 83% to R277m.

The profit decline was largely due to R2b in write-downs on the value of its businesses due to COVID-19. The company, which operates 13 casinos, 23 Galaxy Bingo sites and numerous VSlots halls – offering Limited Payout Machines (LPM) – across South Africa, was already dealing with decreased visitor traffic when it was forced to close all its venues on March 27.

Casinos accounted for the bulk (R7.34b, -2%) of FY20 revenue, with slots accounting for around three-quarters of that total. The LPM segment was up 7% to R1.65b while the bingo vertical produced the biggest percentage gain, rising 10% to R856m.