SunBet's CEO Simon Gregory asserts that the extensive land-based presence of its parent company, Sun International, provides a significant advantage in competing with established online gaming rivals in South Africa.
With operations in Namibia, Botswana, and a solid footprint in its home market of South Africa, SunBet aims to expand its online market share significantly despite fierce competition from established brands like Betway and Hollywoodbets.
"We’re not as big as Betway or Hollywoodbets, but we have a solution that is highly competitive with theirs, and we can offer more rewards while harmonizing gambling play between online and land-based casinos," Gregory stated in an interview following the first half of the year's earnings release.
According to Gregory, SunBet ranks as the third or fourth largest online gaming provider in South Africa, behind market leaders Betway, which entered the South African market in 2017, and Hollywoodbets, which has been active since 2006.
Despite not yet reaching the top two positions, Gregory is confident that SunBet's integrated approach will enable it to effectively compete with these industry giants.
As part of its strategy to bolster its digital presence, SunBet is capitalizing on the established land-based loyalty program of Sun International. This program plays a crucial role given that Sun International holds approximately 50% of the land-based gaming market in South Africa, with 11 casinos operating across eight provinces.
Gregory views the synergy between SunBet and Sun International’s land-based operations as mutually beneficial, stating that the omnichannel capabilities enhance both businesses: "We have certainly benefitted, or both of us have benefitted from an omnichannel solution. We’re able to trade off the strong cultural heritage that Sun International has in the gaming space."
He added, "Having nearly 50% of South Africa’s casino industry allows us to provide a trusted online brand, enabling land-based customers to engage and receive the same rewards online."
These remarks align with comments from Sun International's CEO, Ulrik Bengtsson, who emphasized the development of a proprietary customer ecosystem designed to facilitate diverse offers across platforms.
Sun International reported a 7.4% rise in group income to R6.58 billion ($400.4 million) in the H1 report released this month. A notable highlight was the year-on-year jump in SunBet's revenue, which soared by 35.5% to R1.18 billion, marking a resurgence in the land-based segment after three years of decline.
During the post-H1 earnings call, Bengtsson addressed the potential for converting Sun International's land-based patrons into SunBet users, an objective Gregory is eager to pursue. "We’re fortunate to have a large database of gamblers, and we’ve got the oldest loyalty program in the country across any industry," he remarked. "We’re ensuring that Sun International’s land-based customers know about our attractive and competitive online offering."
