SunBet CEO Simon Gregory sees significant potential in the company’s connection to its parent firm, Sun International, as it faces intense competition from established online gaming platforms in South Africa. SunBet operates in Namibia, Botswana, and its home market, South Africa, where it aims to double its online market share despite strong competitors such as Betway, owned by Super Group, and Hollywoodbets.
Gregory acknowledges that while SunBet is smaller than its rivals, it presents a compelling alternative. “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,” he said during a post-H1 earnings interview.
Currently, Gregory estimates that SunBet ranks as the third or fourth largest online gambling platform in South Africa, positioned behind the two leading firms. Betway entered the South African market in 2017, while Hollywoodbets has been operational online in the region since 2006.
Despite not yet reaching the top two positions, Gregory believes that SunBet’s integrated offerings provide a strong foundation for competing with market leaders. The company is capitalizing on its established land-based loyalty program, which is critical for its digital strategy.
Sun International holds approximately 50% of the South African land-based gaming market, operating 11 casinos across eight of the country’s nine provinces. Gregory emphasizes the mutually beneficial relationship between SunBet and Sun International’s physical locations. “We have certainly benefitted, or both of us have benefitted from an omnichannel solution,” he stated. “We’re able to trade off the strong cultural heritage that Sun International has in the gaming space.”
He added, “We have nigh on 50% of the casino industry in South Africa, and that certainly enabled us to provide a trusted, branded solution online.” This integrated approach allows land-based customers to access the same rewards online and strengthens the overall product offering.
Gregory’s remarks resonate with statements made by Sun International CEO Ulrik Bengtsson earlier this year, who described their strategy as developing one proprietary customer ecosystem to facilitate cross-promotion and customer management within that platform.
Sun International recently reported a 7.4% increase in group income, totaling R6.58 billion ($400.4 million) in its H1 earnings, driven by a significant 35.5% year-on-year rise in SunBet revenue, reaching R1.18 billion. The company’s land-based sector also returned to growth for the first time in three years.
During the post-H1 earnings call, Bengtsson highlighted the opportunity available in converting more of Sun International’s land-based customers into users of SunBet. Gregory reiterated that SunBet’s strategy focuses on utilizing Sun International’s robust customer database and longstanding loyalty program. “We’re fortunate to have a large database of gamblers,” he said. “We’ve got the oldest loyalty programme in the country, I think, of any industry.” He stressed that maintaining awareness among land-based customers regarding Sun International’s competitive online offering is crucial for future growth.
