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S. Africa Issues Gambling License

JOHANNESBURG -- South Africa's Mpumalanga gaming board granted the second legal gambling licence in South Africa to Tsogo Sun Holdings Ltd.

Mpumalanga province awarded the first licence to the Global Resorts South Africa consortium, which plans to build a 200 million rand casino and country club resort in the province's southern region.

"The decision to grant the casino licence in the Northern Highveld area in the town of Witbank to Tsogo Sun, follows a lengthy process during which the board evaluated the proposals submitted by several registrants in the Mpumalanga Casino Development Project," board chairman Keith Kunene said.

Tsogo, a joint-venture between a black consortium and South African Breweries (SABJ.J) hotels unit Southern Sun, has also been chosen as a preferred finalist in the Mpumalanga town of Nelspruit.

Although the board had completed its probity investigations into Tsogo, it has decided not to grant the Nelspruit licence until judgment in a court case between the board and another casino consortium, Esikhehleni Ltd-Karos Hotels Ltd (KARJ.J. Newspaper reports reported that a South African court had ruled on Wednesday in favour of the Karos consortium).

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