MultiChoice and its sports broadcast arm have officially entered SA’s sports betting market with new a platformthat the group hopes will entice more people to its pay TV service, while deterring existing customers from cancelling their subscriptions.
The group is using its tie in with SuperSport, Africa’s largest sports broadcaster, to stand out in an already crowded, but growing, market.
The continent’s largest pay TV operator says the sport and casino betting platform, developed with SuperSport, “is aimed at being the ultimate destination for sports fans, the betting fraternity, and sports lifestyle enthusiasts.”
The group, which uses sport as a big drawcard to its DStv and Showmax Pro platforms, has been investing heavily to take up market share in the continent’s rapidly expanding sports betting 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.
The purchase is the biggest by the DStv operator since it was spun out of Naspers and listed on the JSE in 2019.
KingMakers debuted the betting service locally through a soft launch of SuperSportBet on November 9. The service is open to the public from January 5.
According to US firm Vantage Market Research, the global sports betting market was valued at $81bn in 2022 and is forecast to reach $167.5bn by 2030.
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.
MultiChoice is aware of the opportunity to open up new lines of revenue, with CEO Calvo Mawela telling Business Day in November that the group believes “very strongly that betting still has a great opportunity on the African continent.”
The company says SuperSportBet is being positioned as the “gateway to global sporting excitement, offering an inclusive and dynamic space for every fan to play.” The platform boasts an extensive range of global sporting events, including the leading international and domestic football and rugby competitions.
“Through its strategic partnership with SuperSport, users can expect high-quality matches and betting experiences,” said the group.
“SuperSportBet reflects our commitment to evolve into a platform-based business driven by innovation, delivering unparalleled entertainment experiences. We believe SuperSportBet is the ideal platform for fans to augment their sporting experiences,” Mawela said in a statement on Friday.
“SuperSportBet is more than just a platform; it’s designed to offer entertaining, engaging, and responsible betting experiences. We want our users to engage smartly and responsibly.”
KingMakers narrowed its loss after tax to $8.6m in the six months to June 2023, “despite some challenging results in February for global sportsbooks, the investment ahead of the launch in SA and incurring losses on cash remittances from Nigeria.”
KingMakers reported organic revenue growth of 22%, led by its online sportsbook, where active users increased by 17% and its revenue contribution rose 40% year on year. The weaker naira resulted in reported revenue increasing only 2% to $95m.
MultiChoice said KingMakers is focused on “optimising the profitability of its agency business and growing its higher-margin online business that together with the opportunity presented by the new SA business, will support its path to sustainable profitability.”
It said product and market expansion plans are fully funded, with KingMakers having $134m cash at the end of June 2023.
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