Simon Gregory, CEO of SunBet, believes that the extensive land-based presence of its parent company, Sun International, gives it a significant edge in the battle against established online competitors in South Africa. Currently, SunBet operates in Namibia, Botswana, and South Africa, where it aims to significantly increase its online market share despite facing tough competition from major players such as Super Group's Betway and Hollywoodbets.
"We’re not as big as Betway or Hollywoodbets, but we offer highly competitive solutions, and we can provide more rewards that integrate gambling experiences across casinos and online platforms," Gregory stated in an interview following the company's first-half earnings release.
He estimates that SunBet ranks as the third or fourth largest online betting platform in South Africa, trailing behind Betway, which has operated in the country since 2017, and Hollywoodbets, which launched its online services back in 2006.
Although SunBet has yet to break into the top two, Gregory maintains that the company’s integrated offerings position it well against the frontrunners. To enhance its digital presence, SunBet leverages its well-established land-based loyalty program.
Sun International holds approximately 50% of the market share in South Africa’s land-based gaming sector, with 11 casinos spread across eight provinces.
Gregory highlights the synergetic relationship between SunBet and Sun International's physical gaming operations, noting the advantages of an omnichannel strategy. "We have certainly benefitted from our omnichannel solution," he remarked. "Our strong cultural heritage in the gaming space allows us to offer a trusted online solution, enabling land-based customers to engage with us and receive the same rewards through both platforms."
This perspective aligns with comments made by Ulrik Bengtsson, CEO of Sun International, who indicated in May that the focus has shifted towards integrating a proprietary customer ecosystem to ensure varied offers and effective customer management within that framework.
In its recent earnings report, Sun International announced a 7.4% increase in group income, totaling R6.58 billion (approximately $400.4 million) in the first half of the year. This growth was fueled primarily by a 35.5% rise in SunBet's revenue, which reached R1.18 billion, alongside a rebound in land-based operations after three years of contraction.
During the earnings call, Bengtsson pointed out the potential to convert more of Sun International’s land-based patrons into users of SunBet. Gregory emphasized that their strategy largely depends on leveraging the company’s extensive customer database and its longstanding loyalty program.
"We are fortunate to have a large database of gamblers," he noted. "Our loyalty program is likely the oldest in the country across any industry. So, we’re actively ensuring that land-based customers know about our attractive and competitive online offerings."
