SunBet's CEO Simon Gregory emphasizes the competitive edge provided by its parent company, Sun International, through its extensive land-based presence as it seeks to challenge established online competitors in South Africa.
Currently operating in South Africa, Namibia, and Botswana, SunBet aims to double its market share online despite facing challenges from major players like Betway, owned by Super Group, and Hollywoodbets. "We’re not as big as Betway or Hollywoodbets, but we have a solution that is highly competitive with those, and we can offer more rewards and harmonize their gambling play between the casinos online," Gregory stated following the company's first-half earnings release.
He estimates that SunBet ranks as the third or fourth largest online betting option in South Africa, trailing the two larger competitors. Betway began its operations in South Africa in 2017, while Hollywoodbets launched its online services in 2006.
Even though SunBet has not yet reached the top two positions in the online gambling sector, Gregory is confident that the integration of their services provides a solid platform for competition. SunBet is leveraging its strong land-based loyalty program as part of its strategy to enhance its digital presence.
Sun International dominates approximately 50% of South Africa's land-based market, with 11 casinos spread across eight provinces. Gregory characterizes the synergy between SunBet and Sun International's physical operations as beneficial for both entities, facilitating a seamless omnichannel experience.
"We have certainly benefitted, or both of us have benefitted from an omnichannel solution," he noted. "We’re able to trade off the strong cultural heritage that Sun International has in the gaming space.
With nearly half of the casino industry in South Africa under its belt, the partnership enables SunBet to offer a reliable and recognized online platform, allowing land-based customers to play with the same rewards and integrated product offerings online.
Gregory’s perspective aligns with that of Sun International's CEO, Ulrik Bengtsson, who mentioned in May the growing concept of an interconnected customer ecosystem designed to enhance customer management across their platforms.
Competitive pressure in the online gambling market in South Africa remains intense. Recently, Sun International reported a group income increase of 7.4%, reaching R6.58 billion ($400.4 million) for the first half of the year.
This growth was largely fueled by a remarkable 35.5% rise in SunBet's revenue, totaling R1.18 billion, while the company’s land-based services also started to show growth after three years.
During the post-H1 earnings call, Bengtsson highlighted the potential for converting more of Sun International’s land-based clientele to SunBet. Gregory elaborated on their strategy to capitalize on the substantial customer database and the long-standing loyalty program of Sun International.
"Look, we’re fortunate to have a large database of gamblers," he remarked. "We’ve got the oldest loyalty programme in the country, I think, of any industry.
"So we’ve got a large database, and we’ve been making sure that Sun International’s land-based customers are aware that Sun International has an online offering that is attractive and competitive."
