Hospitality group Tsogo Sun has put all hands on deck to turn around the performance of its flagship theme park Gold Reef in Gauteng as earnings for its casino and hotel business come under pressure, with the flight of consumers to online betting platforms squeezing margins. The company on Tuesday said it ploughed money into Gold Reef as part of efforts to have it performing to optimal standards. “In Gauteng, Gold Reef City made progress in stabilising its business and it is hopeful to resolve the balance of challenges still faced after year-end in the immediate future,” the group said, releasing its year to end-March results.“The group is nevertheless committed to improving this business by investing capital expenditure for the upgrading of the casino gaming floor and certain rides in the theme park.”Tsogo Sun’s casino and hotel precincts came under financial pressure due to loss of revenue generated by slot machines in casinos — with consumers having moved to online betting platforms, benefitting Sun International, whose online betting platform, SunBet, reported 75% growth in income for the year to end-December.Tsogo Sun’s casino and hotel businesses reported flat revenue at R8.2bn in the year under review, with adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) down by 3% to R3bn.On its online betting proposition, it said it is seeing green shoots in the online betting business, which has left much money on the table for rival Sun International to feast on amid a surge in online betting in South Africa post Covid-19.Tsogo said the group is positive about the prospects of the online betting division, which operates under the playTSOGO and bet.co.za brands.“The loss-making operations of the online betting business turned around from August 2025. Gross gaming revenue net of bonusing increased by 24% to R313m for this year and adjusted ebitda increased to R50m compared with a loss of R15m for the prior year,” the group said.“The group’s appointments of the CEO and several other senior managers towards the end of the 2026 financial year come with extensive online betting industry experience. The investment in human capital is essential to deliver an improved offering.“Development of systems and the product portfolio and improvement of customer experience will be core drivers for the 2027 financial year. This will set the business up for strong long-term growth, thereby positioning it to explore broader opportunities in the market.”The online betting market is facing an existential threat from the proposed 20% tax on online bookmakers.The National Treasury last year proposed a nationwide tax on online betting revenue, presenting it as a way to curb excessive gambling but prompting pushback from the industry. Alongside this, the government and advertising industry are tightening gambling laws and marketing rules to crack down on illegal operators, strengthen oversight and better protect children and vulnerable consumers.