Sun International’s stock has declined nearly 9 percent as a result of forced casino closures in South Africa.
Casinos in South Africa will be shuttered until at least July 11 due to a surge in infections of the Delta strain of COVID-19, according to President Cyril Ramaphosa’s declaration.
According to a spokesman for the casino and hotel operator: “All of Sun International’s restaurants and casino properties will be temporarily closed from today, in line with new COVID-19 regulations announced by the president last night. The group has also taken a decision to temporarily close its hotels and resorts, including Sun City Resort and Wild Coast Sun.”
Casinos, gyms and fitness centres, nightclubs, restaurants – except for food deliveries and takeout – and conferencing, exhibition, and entertainment facilities must all temporarily close their doors, with the government reassessing the situation in two weeks.
Graham Wood, Sun International’s chief operating officer for hospitality, explained: “The new regulations require our casinos and restaurants to close, but given the new restrictions on leisure travel into and out of Gauteng, alcohol and the curfew, our hotels and resorts will struggle to operate, so we have taken a decision to temporarily close them too.
“We are mindful that the government is concerned about the risk of transmission and the need to curtail the rise in new infections. However, these restrictions will have a further negative impact on our tourism industry, the thousands of people employed and the surrounding local communities.
“We remain hopeful that the worst of the latest COVID-19 outbreak will have subsided 14 days from now so that we can safely reopen our hotels, resorts and casinos.”
The news comes after Queensland announced a three-day lockdown, which saw The Treasury Brisbane Casino and Restaurants and The Star Gold Coast temporarily close.