SOUTH AFRICA – Tsogo Sun acquires stake in sportsbook Betcoza
Casino operator takes strategic opportunity “to enter the online betting space”
South African gaming and entertainment casino and hotel operators Tsogo Sun has struck a deal move into the country’s sports betting market through the acquisition of a 50.1% stake in local land-based and online operator Betcoza, through Tsogo Sun Alternative Gaming Investments, and will pay ZAR49m (US$2.8m) in cash for its stake in the company operating the Bet.co.za online sportsbook.
As part of the transaction, Tsogo Sun will also acquire an indirect interest in Betcoza’s retail sports betting licences, which covers the provinces of Gauteng and Limpopo, describing the deal as an strategic opportunity, “to enter the online betting space via an existing developing business”.
The deal is classed as a small related party transaction under the Johannesburg Stock Exchange’s listing requirements, as the stake is being acquired from a wholly owned subsidiary of Tsogo Sun majority shareholder Hosken Consolidated Investments.
News of the deal comes after Tsogo Sun said in June that it was at an “advanced stage” of entering the online sports betting market. Following the “devastation” to its core hotels and land-based gaming businesses caused by the novel coronavirus (Covid-19) pandemic, the operator explained that it was searching for new sources of revenue, adding that the online casino games offering is a “natural progression”, despite the vertical currently being prohibited in South Africa.
In April this year. Betcoza became SBTech’s first South African client, after it struck a deal to launch the DraftKings-owned supplier’s sports betting and igaming platform, supported by a tailored trading and risk management strategy for the market, which will facilitate an expansion of Betcoza’s lottery offering, through an integration with BetGames.TV, allowing players to bet on live dealer games and live lottery draws.
