Sun International shares fall due to closure of casinos in South Africa

Sun International
Sun International

After the announcement of the closure of all casinos in South Africa, Sun International’s share price has dropped by almost by 9 per cent.

South Africa.- The news that casinos in South Africa will be closed for at least two weeks has impacted the share price of one of the biggest gaming companies in the country, Sun International.

The South African presidentCyril Ramaphosa, announced this week that all casinos must close until at least July 11 due to an increase in infections of the Delta variant of Covid-19. Gyms, nightclubs, restaurants, exhibition and entertainment facilities are also affected.

A spokesperson for Sun International said: “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.

The share price of the company dropped by around 9 per cent after the news.

Sun International’s chief operating officer for hospitality, Graham Wood, said: “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.”

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