Tsogo Sun has ventured online by acquiring a significant share of Bet.co.za. This is in response to the devastation wrought on the brand by COVID-19.
Tsogo Sun, one of the leading hospitality groups in South Africa, has reached an agreement with Bet.co.za, the country’s premier online bookmaker. It sees the gaming and entertainment business making its move into the sports betting market. This is being achieved by its acquiring a 50.1% stake in the local brand which operates at land-based venues and at sites online.
A Multi-Million Rand Transaction
The Tsogo Sun Alternative Gaming Investments subdivision will ante up ZAR49 million cash for the stake. The transaction includes its acquiring indirect interest in the Bet.co.za retail sports wagering licenses which cover Gauteng and Limpopo. The agreement has been described as a move calculated to allow the operator to make its entrance into the world of online betting smoothly. Thanks to doing so via a business that is already functional.
This contract has been classified as a Small Related Party undertaking under the listing requirements for the Johannesburg Stock Exchange. This categorisation is as a result of the stake being acquired from a wholly owned division of Tsogo Sun’s principal contributor, Hosken Consolidated Investments, a financial holding company established in 1973.
The value of the 50.1% holding has been set at ZAR36.7 million and a loss of ZAR3.5 million was attributed to the assets. This was over the year ending 31 March 2020.
All in the Wake of the Pandemic
The details of the deal were made public after the June announcement by the Group of the advanced stage of its plan to enter the online sports wagering market being reached. This was in response to the ruin brought to the core hotel and land-based casino by the novel coronavirus COVID-19 pandemic that swept the globe in 2020. New revenue sources had to be found and this venture is the response.
The operator saw moving into offering online casino games as the next step in its vertical, despite the fact that it is still unlawful for South Africans to enjoy them.
Bet.Co.Za’s Big April Expansion
In April this year, Bet.co.za became the first South African client at SBTech, a supplier of world-leading online sportsbooks and assorted white label operators with best-in-class wagering and various iGaming platform solutions.
The latest move is also one which will pave the way for Bet.co.za to expand its current Lottery products via a merger with BetGames.TV. This allows bettors to wager on games featuring live dealers and real time Lottery draws.