National Gambling Board data shows gross gambling revenue has more than doubled
25 June 2024 - 05:00
by Mudiwa Gavaza
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SA’s online betting market has been helped by recent sporting World Cup events, a greater awareness of online betting, the rise of mobile betting apps, better regulation and increased internet casino activity. Picture: 123RF
SA’s online betting market is growing, one of the reasons for MultiChoice’s bullish investment in the sector, which has been helped by recent sporting World Cup events, a greater awareness of online betting, the rise of mobile betting apps, better regulation and increased internet casino activity.
In January, the group officially entered SA’s sports betting market with a new platform, using its tie in with SuperSport, Africa’s largest sports broadcaster, to stand out in an already crowded, but growing, market.
In June 2021, the group paid $281.5m to increase its stake in BetKing, a digital and sports entertainment platform that focuses on Africa, to 49%. It initially bought a 20% stake in October 2020. Blue Lake Ventures, which traded as BetKing, recently changed its name to KingMakers.
KingMakers had debuted the betting service locally through a soft launch of SuperSportBet in November 2023. Since then, the group said the service was “experiencing strong user uptake”.
The group, which uses sport as a big drawcard to its DStv and Showmax Pro platforms, is employing the same strategy to boost the betting business through programming and other efforts that increase awareness of betting, helping to push up users for SuperSportBet.
“With SuperPicks and the PlayBook preview show already live in SA on SuperSport, we have pushed pregame shows and live feed integration to leverage the SuperSport platform in driving uptake and engagement on SuperSportBet which features a fully-fledged sportsbook and casino product suite, as well as virtual and other i-gaming products,” the group said as it reported full-year earnings to March.
“User uptake has been further supported by our official betting partnership with local soccer clubs Kaizer Chiefs and Orlando Pirates.”
MultiChoice is yet to reveal specific performance numbers for SuperSportBet.
As a sign of the available opportunity, data from the National Gambling Board of SA shows gross gambling revenue in the country more than doubled to R47.2bn in 2022/23 from R23.25bn in 2020/21.
The local market is dominated by Betway, Hollywoodbets, PlayaBets and Easybet.
Retief Uys, head of yield at local outfit Sportingbet, said its business has grown in recent years.
“In a nation as obsessed with sports as SA, sports betting will likely keep growing. In doing so, it will create jobs, help grow the economy and, provided it’s practised safely, bring people closer to their favourite sports.”
Sportingbet accepts more than 1-million unique bets a day, and on some days more than 2-million.
Expectedly, football is the most popular sport to bet on for South Africans, with the typical bettor bidding smaller amounts, about R70 per bet.
Uys highlighted the popularity of basketball, saying it appealed to “bettors who have the appetite to risk more per bet”. The typical basketball bettor will bet R350 per play.
He said the popularity of tennis “is also significant” and was growing atrates of about 20% a year.
“There was huge growth in the popularity of rugby in 2023, growing by almost 100% compared to the two preceding years. We can call it the Springbok effect,” Uys said.
He noted rapid growth in the popularity of darts, especially in 2023. This sport has grown by 75% since 2022 and is popular among people who are willing and able to risk larger amounts per bet, around R700 per bet.
“One of the biggest factors in the growth of sports betting is simply increased awareness and visibility,” he said.
“We are also seeing a shift in player demographics. There has been rapid growth of women punters regularly betting in recent years, growing from 20% of new acquisitions in 2021 to 40% in 2023. This has further been aided by the greater prominence of casino products in recent times, especially slot games.”
Further afield, BetKing Nigeria was negatively affected by poor macroeconomic conditions.
The group said KingMakers delivered a robust performance in terms of organic growth and operational execution. The online business in Nigeria grew monthly active online users by 37% year on year and online gross gaming revenues were up 26% year on year in constant currency.
In the period, the company launched new products in the West African nation, including BetKing Casino and BetKing FootballGO, a virtual football sportsbook service.
Earnings before interest, tax, depreciation and amortisation (ebitda) was marginally up to $2m, with a net loss of $40m as a result of foreign exchange losses.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Online sports betting market is on the up and up
National Gambling Board data shows gross gambling revenue has more than doubled
SA’s online betting market is growing, one of the reasons for MultiChoice’s bullish investment in the sector, which has been helped by recent sporting World Cup events, a greater awareness of online betting, the rise of mobile betting apps, better regulation and increased internet casino activity.
In January, the group officially entered SA’s sports betting market with a new platform, using its tie in with SuperSport, Africa’s largest sports broadcaster, to stand out in an already crowded, but growing, market.
In June 2021, the group paid $281.5m to increase its stake in BetKing, a digital and sports entertainment platform that focuses on Africa, to 49%. It initially bought a 20% stake in October 2020. Blue Lake Ventures, which traded as BetKing, recently changed its name to KingMakers.
KingMakers had debuted the betting service locally through a soft launch of SuperSportBet in November 2023. Since then, the group said the service was “experiencing strong user uptake”.
The group, which uses sport as a big drawcard to its DStv and Showmax Pro platforms, is employing the same strategy to boost the betting business through programming and other efforts that increase awareness of betting, helping to push up users for SuperSportBet.
“With SuperPicks and the PlayBook preview show already live in SA on SuperSport, we have pushed pregame shows and live feed integration to leverage the SuperSport platform in driving uptake and engagement on SuperSportBet which features a fully-fledged sportsbook and casino product suite, as well as virtual and other i-gaming products,” the group said as it reported full-year earnings to March.
“User uptake has been further supported by our official betting partnership with local soccer clubs Kaizer Chiefs and Orlando Pirates.”
MultiChoice is yet to reveal specific performance numbers for SuperSportBet.
As a sign of the available opportunity, data from the National Gambling Board of SA shows gross gambling revenue in the country more than doubled to R47.2bn in 2022/23 from R23.25bn in 2020/21.
The local market is dominated by Betway, Hollywoodbets, PlayaBets and Easybet.
Retief Uys, head of yield at local outfit Sportingbet, said its business has grown in recent years.
“In a nation as obsessed with sports as SA, sports betting will likely keep growing. In doing so, it will create jobs, help grow the economy and, provided it’s practised safely, bring people closer to their favourite sports.”
Sportingbet accepts more than 1-million unique bets a day, and on some days more than 2-million.
Expectedly, football is the most popular sport to bet on for South Africans, with the typical bettor bidding smaller amounts, about R70 per bet.
Uys highlighted the popularity of basketball, saying it appealed to “bettors who have the appetite to risk more per bet”. The typical basketball bettor will bet R350 per play.
He said the popularity of tennis “is also significant” and was growing at rates of about 20% a year.
“There was huge growth in the popularity of rugby in 2023, growing by almost 100% compared to the two preceding years. We can call it the Springbok effect,” Uys said.
He noted rapid growth in the popularity of darts, especially in 2023. This sport has grown by 75% since 2022 and is popular among people who are willing and able to risk larger amounts per bet, around R700 per bet.
“One of the biggest factors in the growth of sports betting is simply increased awareness and visibility,” he said.
“We are also seeing a shift in player demographics. There has been rapid growth of women punters regularly betting in recent years, growing from 20% of new acquisitions in 2021 to 40% in 2023. This has further been aided by the greater prominence of casino products in recent times, especially slot games.”
Further afield, BetKing Nigeria was negatively affected by poor macroeconomic conditions.
The group said KingMakers delivered a robust performance in terms of organic growth and operational execution. The online business in Nigeria grew monthly active online users by 37% year on year and online gross gaming revenues were up 26% year on year in constant currency.
In the period, the company launched new products in the West African nation, including BetKing Casino and BetKing FootballGO, a virtual football sportsbook service.
Earnings before interest, tax, depreciation and amortisation (ebitda) was marginally up to $2m, with a net loss of $40m as a result of foreign exchange losses.
gavazam@businesslive.co.za
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