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Sun International Closes Flamingo Casino in Kimberley After Sustained Revenue Declines

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Sun International Closes Flamingo Casino in Kimberley After Sustained Revenue Declines
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SCCG Take — Persistent channel shift to betting forces operators to accelerate portfolio rationalisation or adopt lower-cost models to protect margins in contracting land-based segments.

Sun International has closed the Flamingo Casino in Kimberley. The property ceased trading at 3am on November 1, 2026, ending more than 24 years of operations.

The closure follows prolonged revenue declines and operating losses. In the first six months of 2026, Flamingo recorded an adjusted operating loss of R9m against income of R38m. Revenue declined 21% during the period, after falls of 13% in 2025 and 10% in 2024. The casino posted an adjusted operating loss of R7m in 2025.

Opened in 2002 at a development cost of approximately R110m, the casino operated 250 slot machines and seven gaming tables. Sun International holds a 71.4% interest, with the Teemane Consortium holding the remainder.

Restructuring Programme and Strategic Response

The move forms part of a wider review. In July, Sun International initiated a Section 189A employee consultation process covering four smallest casinos: Flamingo, Golden Valley in Worcester, Meropa in Polokwane and Windmill in Bloemfontein. The group is applying a lower-cost 'Casino Lite' operating model to the latter three properties to improve productivity. Flamingo was excluded.

Sun International CEO Ulrik Bengtsson has outlined a financial discipline strategy that targets underperforming assets. Confirming the closure, the company stated: "Following the conclusion of the formal process, the decision was made to close Flamingo Casino." It added: "Our focus is on supporting affected stakeholders and ensuring customers receive clear guidance and assistance."

Market Share Erosion in South African Gaming

The closure reflects intensifying competition from online betting. National Gambling Board figures show casinos' share of gross gambling revenue declined from 78.4% in 2012/13 to 22.3% in 2024/25, while betting's share increased from 12.4% to 69.8%, according to reporting by G3 Newswire. The property employed 173 people in 2019, though that number had fallen considerably before closure. The number affected remains unconfirmed.

Flamingo's exit leaves the Northern Cape with one licensed casino, Desert Palace in Upington. Sun International has not disclosed plans for the former site.

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