What kind of approach will work?
In markets such as Latin America we have done well with an
approach of starting ﬁve to six diversiﬁed projects in different
regions as a way to test the market. Therefore it is likely that
our approach in Africa will be the same. Unique models such as
agents’ joint ventures with shop operators and casino operators
are likely to ﬂourish in this region. We will seek and identify key
marketing partners over the course of 24 months and work
with ﬁve to six partners across the region, where we will try and
ensure that all of these ventures succeed with the maximum
support we can give them. We have already set up a hub in
South Africa to service the market and ensure we have boots
on the ground from the start.
Type of business
The nature of business in Africa is interesting. We have a
licensed venture in Uganda where we are making 20% margin
with strong growth month on month. However, we are learning
on the job and have had to do a lot of work on the mobile
channel to get it working across all handsets.
In terms of operations we are working with shop operators
and using shop networks as cashpoints. Step two will be to
integrate various mobile payment systems. It’s basic, but it
works. In particular mobile apps need to work on relatively basic
feature phones using Opera Mini.
At the recent Big Africa Summit, Betradar mentioned that
some of its licensees in markets such as Nigeria are experiencing
growth rates of over 1,000% per annum. Although likely from a
low base, it is still fast growth. We are currently getting more
new business enquiries from Nigeria than any other region.
Nigeria is ahead of many markets in this region, with a number
of operators offering European standard of live betting and
covering up to 2,000 events per month.
At the recent Big Africa
Summit, Betradar mentioned
that some of its licensees in
markets such as Nigeria are
experiencing growth rates
of over 1,000% per annum.
Although likely from a low
base, it is still fast growth
Overall the market is very interesting and offers real growth
opportunities for operators there. It will be a mix of old fashioned
business development driven business mixing up channels such
as shop, mobile, agents, cashiers and various other models. But
also a high level of technical aptitude is required from ﬁrms
entering in terms of mobile – this is a region that may skip
desktop to some extent. Indeed, 80% of our current players in
this region do not have an email address!
We will seek and identify
key marketing partners over
the course of 24 months and
work with five to six partners
across the region, where we
will try and ensure that all of
these ventures succeed