Yeah, having entertainment means they need an entertainment licence, but so do a lot of other things, like having more than two gaming machines. It's not expensive though (R25 in Cape Town, probably similar up there). It won't be transferable as it's keyed to the owner's ID.
Here's the one for Cape Town, which includes the relevant info on the Business Act 71 of 1991:
http://www.capetown.gov.za/en/CityHealth/EnviroHealth/FoodQualityandSafety/Pages/LicencingandCertification.aspx