As online gaming platform SunBet shoots the lights out for Sun International’s mid-year results with income growth of 70%, the group is increasingly turning to technology across its operations to thrive in a digital world.
In the six months to June, SunBet’s revenue jumped to R874 million and now makes up almost a fifth of the gambling company’s income, driven by a 128.7% increase in slots income, as well as higher customer activity and deposits.
By comparison, the broader group reported a gain of 6.7% in income, excluding Table Bay Hotel, which is undergoing “substantial refurbishment”.
The rapid growth of online betting, together with broader developments in technology, are shaping Sun International’s digital strategy.
This is reflected in SunBet’s strong performance, with the results booklet highlighting that the group is “well-positioned for sustainable growth”. It cites “strong momentum in digital conversion for SunBet” and notes plans to “seek growth in selective regulated African markets for SunBet”.
During the results presentation, recently appointed Sun International CEO Ulrik Bengtsson said: “I’m very happy with the continuous growth in SunBet of 70%.”
SunBet’s growth comes at a time when, as the CEO said, “customer expectations and behaviours are changing fast, and they're being driven by technology, values and innovation”.
Although Bengtsson was only appointed in July and the company cannot yet fully detail its digital strategy, he hinted at its future direction. “Sun International now needs to ensure it stays ahead of the curve, to make sure we are thriving in a digital, mobile and AI-first world.
“Over the coming months, we will re-assess our approach to both driving improvements in growth and optimising returns. My focus is on the long-term competitiveness of Sun International as a digitally-led, market-leading omnichannel gaming company of scale, enabled by competitive products, smart omnichannel solutions, engaged teams and improved execution.”
Sweden-born Bengtsson noted that Sun International’s omnichannel has great potential. “This is a critical time for our industry, and for Sun International we have an incredible set of physical and digital assets and a unique ability to offer a true omnichannel experience.”
This comes as its urban, physical, casinos are seeing declining revenues.
Sun International CFO Norman Basthdaw highlighted that, although urban casinos – such as Carnival City in Gauteng – remain the cornerstone of the group’s land-based operations, growth is on a declining trend.
Income from these venues was down 1.4% year-on-year in the first half.
Sun International’s shifting focus to a digital environment aligns with global trends, where backend providers such as VeliTech are developing AI-based offerings in iGaming – internet-based gambling or gaming.
Other emerging technologies in the sector include machine learning, virtual and augmented reality, blockchain and crypto-currency, biometric authentication and the internet of things.
Research is also under way in quantum gambling theory, with academics exploring how quantum computing principles could be applied to games like blackjack to eliminate bias.
Online gaming is surging in South Africa. The National Gambling Board of South Africa notes in its latest performance report for 2023/24 that “online betting is now firmly established as the dominant mode of gambling in the country”. This is its latest available report.
The latest Statistics South Africa data shows online gambling generated R152.6 billion in 2023, sharply up from R10.1 billion in 2018.
Despite half of all gamblers playing online, the gross gambling revenue – the difference between wagers and payouts – was substantially higher than at casinos, reaching 81% in the 2023/24 fiscal year, the National Gambling Board says.
Share