MultiChoice betting big on gambling and new payment platform in South Africa

Media group MultiChoice says it is working on a new online betting service and payment system for South Africa. The group has launched its inaugural capital markets day, in which the company outlined its long-term strategy of transforming its business from a predominantly video entertainment-based platform into a bigger technology platform encompassing new and emerging ecosystems.

As part of this strategy, the group aims to expand its interactive entertainment segment with a big play in sports betting, while also expanding its fintech capabilities through the launch of a new payment platform, Moment.

Sports betting

MultiChoice said that it is partnering with KingMakers, a sports and gaming betting company, to launch a new online betting service in South Africa. Sports betting is a regulated and legal form of gambling in South Africa, and legal bookkeepers and betting agencies can operate as long as they are licensed.

“The new South African platform will be called SuperSportBet, with the platform set to launch by the end of 2023” – KingMakers’ CEO Kim Reid said.

SuperSportBet will join KingMakers’ other businesses in Africa, including BetKing in Nigeria and SuperPicks in Ghana. KingMakers said that Africa is the fastest-growing gambling market in the world.

Africa’s Gross Gaming Revenue (GRR) is expected to rise by 17% by 2027, beating Latin America and Asia and the Middle East, which are set to see growth of 13% and 7%, respectively. The growth in GGR is expected to be assisted by the expected GDP growth of 6% in Africa by 2027. Moreover, Africa is expected to see further internet access, mobile network penetration and smartphone penetration, allowing for greater digitisation.

KingMakers added that online betting in Sub-Saharan Africa is set to rise from $2.9 billion (R55.7 billion) to $5.5 billion (R105 billion) in 2027. In South Africa, online betting is set to rise from $13 (R231) per head in 2022 to $18 (R346) by 2027.

KingMakers said that its major focus will be on online betting and will leverage its relationship with MultiChoice to differentiate itself from the competitive and saturated market.

The group noted that MultiChoice brands and well-recognised and trusted, which will reduce marketing costs. It also plans on leveraging MultiChoice’s database for growth opportunities, noting that around 77% of DStv subscribers are said to be active betters or engage in match predictions.

New payment system

MultiChoice is also working on a new online payment company called Moment which aims to address the digital divide in Africa.

Moment is a joint venture between MultiChoice, global payment platform Rapyd and Fintech Ventrue Capitalists General Catalyst, Entree Capital and Raba, and aims to build the biggest Pan-African payments network.

According to research from Mastercard and the World Bank, across Africa, 90% of retail transactions are paid with cash, with 350 million underbanked on the continent.

However, with the youngest working population in the world – expected to hit 1.7 billion people of working age by 2050, growing urbanisation and the improvement in mobile access, it is believed that digital adoption will increase across the continent.

Moment will partner with real-time payment providers, such as payshap in South Africa, which will allow consumers and businesses to make payments instantly. It will also allow for instant cross-border payments in over 16 markets.

The company is set to earn revenue by charging users when they pay bills, purchase in-App or redeem offers at a retailer location. Moment is currently in Beta, and its launch date is yet to be announced.

Source: businesstech.co.za

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