Super Group plans to pursue three online gambling licenses in New Zealand as it prepares to enter the upcoming licensing auction held by the Department of Internal Affairs (DIA). The group, which already manages the Betway brand in New Zealand, reported a 14% year-over-year increase in regional revenue during the second quarter, despite cutting back on marketing expenses.
CEO Neal Menashe noted that improvements in the New Zealand market contributed to a 6% overall increase in revenue for the group’s operations outside its primary markets.
In a discussion after the company’s recent results call, CFO Alinda Van Wyk remarked, “We’ve been operating in New Zealand for many years and it already has quite a significant tax regime. At the time of the re-regulation, there was a lot of noise around marketing; we didn’t market there because you don’t want to fall into the trap of a bad actor.”
Van Wyk confirmed that Super Group intends to apply for three of the 15 licenses available for tender. The New Zealand government welcomed expressions of interest (EOI) for online gambling licenses in July, with plans for market launch in 2027. Each operator will be limited to three licenses, and Entain, which currently holds the TAB sports betting monopoly, has also expressed its intention to apply for the maximum number of licenses.
The cap of 15 licenses, along with a requirement for operators to demonstrate access to at least NZ$7.5 million in capital, indicates the government’s goal of restricting license grants to established operators with solid capital bases.
In the UK, Super Group faced questions from analysts about its market position during the same results call. Although the group does not provide a breakdown of its UK revenue, the UK market contributed to a 19% revenue increase in Europe, reaching $132 million. Menashe stated that the company has been increasing its market share in the UK since the Remote Gaming Duty tax hike implemented in April.
“We’re not a major player in the UK, so there’s a lot of market share we are getting,” he said. Van Wyk added, “Our marketing is really returning to what we’re spending at the moment, which is really a good strategy and we’re happy with that performance. It is crucial to optimize marketing for greater efficiency in that market, which would ultimately enhance margins.”
Super Group recently secured a substantial sponsorship with Premier League club Manchester United, aimed at boosting its visibility in the UK and internationally, particularly in Africa.
After the earnings call, Van Wyk mentioned that the group is in a “fortunate position” in the UK market. When asked about potential acquisitions as smaller operators reassess their strategies, she expressed optimism: “At some point, there would definitely be operators that we could merge with to enhance our market share. We’re quite excited.”
While Betway has traditionally focused on sports betting in the UK, Van Wyk remarked that there is a strong focus on enhancing its online casino offerings. The operator has improved its product suite and completed a project to centralize its technology and product platforms, which, alongside increased marketing efficiency, has helped boost World Cup casino cross-sell to 50% among new customers.
Super Group has raised its full-year revenue guidance to exceed $2.6 billion from an earlier $2.55 billion projection, with adjusted EBITDA now expected to surpass $710 million. In the second quarter, the adjusted EBITDA reached $204 million, up from $157 million last year, and the company reported a profit of $123 million, a significant improvement over the previous year’s loss of $3 million.
