Gambling is constantly developing in South Africa. If you are a fan of online free slots and follow what is going on in the gambling business, continue reading this article.
Betfred Deal Fails
A South African horse racing specialist turned down a deal offered by Betfred. This company is Phumelela Gaming and Leisure Limited. The company, which is reportedly losing money, received a $55.6 million offer and rejected it.
The firm has opted to accept another offer. This offer comes from one of its largest creditors, Mary Oppenheimer Daughters, a private equity investor. In this deal, the firm will receive $28.8 million in exchange for some of its assets, along with shares in the company.
According to analysts, the deal may eventually cost the private equity firm more than $55 million. Mary Oppenheimer Daughters already loaned $6 million to Phumela. Sources say that the creditors of Phumela may even receive at least $33 million in assets and shares.
Phumela is a big network that manages four horseracing facilities in South Africa. One of these is the world-renowned Turffontein Racecourse. However, the company has been struggling financially, and it is in debt of $36 million. This situation is what prompted the executives of Phumela to start entertaining business propositions from interested parties.
African Sports Betting Is Suffering Because Of The Pandemic
The world is suffering, but some industries felt a heavier blow than the others. One of these industries is sports betting, and Africa’s situation is not doing any better than its global counterparts.
According to a report for BBC, South African betting sites experienced a drop of 75% in revenues.
Ivan Kalanzi, brand ambassador for GAL Sports Betting, said that the business of sports betting is now a mess. Authorities implemented quarantine laws and measures to prevent the spread of the virus, which further caused a downward spiral on sales.
The BBC also reported that several sports were cancelled, these cancellations led to the poor performance of sports betting businesses. For example, the EUFA European Football Championship was cancelled. It is a major event, and its cancellation put a serious dent in the earnings of sports betting companies.
Specifically, the wagering sectors that got hurt are physical betting businesses. Their customers are primarily made of patrons who are reluctant in betting online. Kalanzi now says that the GAL Sports Betting has now lost 99% of its revenues. While the company offers online sports betting, a big chunk of their customer base is comprised of “physical bettors.” These are players who also do not play online games even despite generous casino bonuses.
Another expert said that local gaming revenues have declined because clients are reluctant to place bets in a sports league that they do not know. For example, there may be games in North America and Asia, but the African market is averse to these leagues as they do not know the players.
Evolution Gaming to Go Live in South Africa
Evolution Gaming announced that it is ready to deploy its services in the South African market. This news comes just a day away from unveiling its line-up in ICE. Evolution Gaming received its license from the Western Cape Gambling and Racing Board, also known as WCGRB.
Evolution Gaming, which is based in Stockholm, is a major supplier of live casino games. They have studios where live casino games are happening, and these games are aggregated to different online gambling operators.
The license will now enable Evolution Gaming to provide games to South African operators. The license includes gaming provisions for its recently acquired live dealer provider, Ezugi.
The founder and chief of Ezugi said that they are expecting long-term growth in live dealer games in the South African market. Furthermore, he believes that they can power live games that have fixed odds, including live game shows, which will further expand that reach of the company in South Africa.
Evolution Gaming acquired Ezugi late in November of 2018. This acquisition increased the visibility and reach of the company in the European market, and this also allowed them to start seeking new ventures in South Africa.
South Africa may be suffering from the ebb and tide of the pandemic, but it surely is going to recuperate from the financial slum in the casino industry once the pandemic is over. As gamblers realize that it may take a little while for things to go back to normal, we can expect the punters to start trusting online gaming facilities, such as online casinos and sportsbooks.