Owner of South Africa’s most iconic hotel set to win big from government’s gambling crackdown

Hospitality giant Sun International is set to win big from the government’s ongoing crackdown on online gambling, which could see illegal operators banned in South Africa.

This is set to benefit established local gambling operators, such as Sun International’s online betting platform, Sunbet.

Sun International is one of South Africa’s biggest hospitality companies and the owner of the country’s most iconic resort, Sun City.

The company also operates one of the biggest casino businesses in the country, as well as the successful online betting platform Sunbet.

Sun International has been performing well over the past few years, as the hospitality industry is recovering from the Covid-19 pandemic.

2025 marked a “transition” year for the group, with Sun International having assessed its potential and operating capabilities on a five-year value creation plan.

This plan is aimed at helping Sun International realise its ambition to become a digitally-led, market-leading, omnichannel gaming company of scale.

It coincides with Sunbet’s success over the past few years, with the online betting platform having become a standout performer in the company’s results.

Sun International has also invested R400 million into upgrading and refurbishing the Sun City resort, revamping the Palace and the Sun City Hotel to attract more affluent clients.

According to CEO Ulrik Bengtsson, this investment is starting to pay off, with Sun City benefiting from a strong increase in gaming and hospitality revenues.

In Sun International’s latest full-year results for the year through December 2025, the company reported net gaming wins growth of 7.5% to R10.30 billion and revenue growth of 10.39% to R2.67 billion.

However, the company’s profit for the year fell 15.70% compared to the 2024 financial year, declining to R1.78 billion. Its basic earnings per share also declined by 12.90% to 667 cents per share.

Analyst opinion

Nitrogen Fund Managers’ founder and managing director, Rowan Williams, chose Sun International as his stock pick in a recent interview with BusinessDayTV.

Williams explained that his company has liked Sun International for some time, and believes that the ongoing FIFA World Cup is set to benefit the company’s gambling income.

“Some of the prediction markets have picked up that market share, but Sun International has a very strong online gambling presence,” he said.

“What they’ve been trying to strengthen is actually their sports betting, and this is a great opportunity to do that.”

While South Africa’s online betting market is currently dominated by two players – Hollywoodbets and Betway – Sun International has been making inroads.

When looking at JSE-listed players, which include Sun International, Tsogo Sun, and Goldrush, the Sun City-owned is growing by far the fastest.

According to Camissa Asset Management’s Nicholas Brown, Sunbet commands roughly 3% of the market.

Williams said this market share is expected to grow in the coming years as South Africa’s government increasingly cracks down on the online betting market.

While this may sound like a threat to players like Sunbet, Williams pointed out that the government’s regulatory efforts are largely focused on illegal operators.

“It looks like in the short term it’s actually going to be to their benefit because the government is now looking at cracking down on illegal operators,” he said.

The government has announced plans to block illegal offshore online gambling operators from South Africa.

“I think that will grow the market share of particularly the legal operators. That’s where Sun International will benefit,” Williams said.

Even government efforts that are expected to affect local operators, such as limits on gambling advertisements, could work in Sun International’s favour.

This is because, as Williams explained, Sun International and other local operators already have an established brand presence and loyal user base.

Williams explained that limits on advertising will likely translate into fewer new entrants, which should benefit local players who are already well-known and have established, loyal users.

“We don’t see that as a significant threat. If anything, it may actually raise barriers to entry,” he said.

On top of this, Williams said Sun International’s stock is still very reasonably valued and “looks like it’s still got further potential”.