SunBet's CEO Simon Gregory is optimistic about leveraging the extensive land-based presence of its parent company, Sun International, to gain an advantage in South Africa's competitive online gambling market. SunBet operates not only in South Africa but also in Namibia and Botswana, where it aims to significantly increase its online market share, even as it faces established players like Betway and Hollywoodbets.
"We’re not as big as Betway or Hollywoodbets, but we have a competitive solution that offers more rewards and integrates gambling experiences between our casinos and online platforms," Gregory stated during a post-H1 earnings interview with iGB.
He estimates that SunBet ranks as the third or fourth largest online betting service in South Africa, trailing the dominant operators that have been in the market longer—Betway since 2017 and Hollywoodbets since 2006.
Although SunBet has not yet reached the top two spots, Gregory believes the integration between the online and land-based offerings positions them well against the competition. The operator is capitalizing on Sun International's established loyalty program, which plays a crucial role in its strategy to enhance its digital presence.
Sun International holds a significant market share, accounting for about 50% of the land-based gaming sector in South Africa, with 11 casinos across eight provinces. Gregory regards the synergy between SunBet and Sun International's physical operations as mutually advantageous, enhancing both sides through omnichannel capabilities.
"We have certainly benefitted from this omnichannel solution," he said. "We leverage the strong cultural heritage that Sun International has in the gaming space, allowing us to provide a trusted online brand while offering our land-based customers the same rewards."
This sentiment aligns with remarks previously made by Sun International CEO Ulrik Bengtsson, who expressed his vision of a comprehensive customer ecosystem that facilitates shared opportunities and streamlined offers within the company.
In its recent financial report, Sun International announced a 7.4% growth in group income to R6.58 billion ($400.4 million) for H1, driven by a remarkable 35.5% year-on-year rise in SunBet's revenue to R1.18 billion. Notably, the land-based operations also returned to growth after three years of decline.
During the post-H1 earnings call, Bengtsson identified a key opportunity to transition more of Sun International's land-based patrons to SunBet users. Echoing this strategy, Gregory noted that leveraging Sun International's vast customer database and longstanding loyalty initiatives is vital in attracting these customers to the online platform.
"We’re fortunate to have a large database of gamblers," he noted. "We maintain the oldest loyalty program in the industry in South Africa, so we are ensuring that Sun International’s land-based customers recognize the appealing and competitive online options available."
