Sun International is looking to acquire new companies after its attempt to purchase Peermont, the owner of Emperors Palace, was unsuccessful. The deal, valued at around R7 billion, was terminated due to issues with competition regulators.
In October 2024, the Competition Commission recommended that the Competition Tribunal reject the acquisition, stating it would substantially prevent or lessen casino and gambling services in South Africa and central Gauteng. Although the Tribunal had the final say and could have approved the deal, both companies decided to abandon it when it became clear they could not make it work.
The tribunal hearing and closing arguments were scheduled for October 2, 2025, which would have been after the proposed transaction’s longstop date of September 15, 2025.
Sun International emphasized that the regulatory environment is a critical focus area and called for a balanced framework that aligns the interests of operators, government, and consumers. The company stated, “Well-calibrated regulation is the most effective safeguard against the proliferation of illegal gambling and is essential to maintaining a fair and responsible gaming ecosystem.”
Despite the setback with Peermont, Sun International remains open to selective acquisitions in online gaming to enhance scale, geographic diversification, and access to technology. The group aims to optimize its portfolio through minority buyouts where opportunities arise and to redirect resources toward strategic growth areas.
The company is also focused on driving growth in free cash flow while maintaining a disciplined approach to capital allocation. This strategy aims to balance shareholder returns, business investment, and value-accretive mergers and acquisitions (M&A).
In its financial results for the six months ended on June 30, 2025, Sun International reported navigating economic headwinds and structural shifts in the gaming sector. The group benefited from market-leading assets, including land-based casinos, online gaming, resorts, hotels, and limited payout machines.
The Sunbet division continued its upward trend, with income increasing by 70.7%, driven by a higher volume of activity and deposits. However, urban casinos experienced a muted performance, with income declining by 1.4% due to operational challenges and a pressured casino market, prompting a reassessment of the portfolio.
The group’s Sun Slots strategy yielded positive outcomes, with income improving by 2.2% to R701 million compared to the previous period. Continuing income increased by 3.2% to R6.2 billion, and when excluding the impact of the Table Bay Hotel lease cessation in Cape Town, continuing income rose by 6.7%.
Continuing adjusted EBITDA declined by 3.8% to R1.6 billion, though it would have increased by 1.1% without the lease cessation. Despite these challenges, the group’s headline earnings per share rose by 60% to 741 cents, while basic earnings dropped by 3% to 745 cents. The increase in headline earnings was aided by a reduction in the estimated redemption value of the SunWest put option liability of R197 million. Sun International declared an interim dividend of 172 cents per share, marking a 6.8% increase from the prior period.
