Super Group, spearheaded by an experienced CEO and supported by a seasoned team, is aggressively venturing into promising markets in developing regions. Africa, Latin America, and the Middle East stand as immediate expansion targets for all of the company's brands.
Outlook on the Middle East
In the burgeoning regions of the Middle East, football reigns supreme. Betway's partnership with the Premier League grants it global brand recognition, making its investment in England a boon on a worldwide scale. "Long-term relationships with the teams and leagues we sponsor offer numerous benefits," remarks Menashe.
"However, these partnerships must be mutually profitable," Menashe asserts. "Super Group meticulously evaluates any potential transactions and continues to do so before entering into or renewing contracts."
UAE: To Enter or Not?
Super Group remains vigilant regarding new market opportunities, including the United Arab Emirates (UAE), where a lucrative market encompassing land-based establishments (expected in the future), online gaming, and lotteries could emerge. While Menashe acknowledges this potential, he believes the conditions for operating in an Arab country are not yet favourable and opts for cautious deliberation.
"The growth and revenue potential of the gaming industry in the UAE hinge directly on the tax and regulatory framework in place," Menashe explains. "If the industry fosters sustainable competition and ensures seamless and transparent access, this market could evolve into an exciting and highly profitable geographical area. Despite the challenges, the UAE and the entire Middle East hold immense promise."
Super Group's strategic approach to assessing market viability underscores its commitment to responsible expansion and long-term success in diverse global landscapes.
"Leave on Time": Super Group's Experience in India
A CEO's role entails making tough decisions, including knowing when to persevere, when to pivot, and when to step away.
India is often viewed as a dormant powerhouse within the gambling industry, boasting a population of over a billion people with a fervent passion for sports, particularly cricket. Given Super Group's existing sponsorship portfolio in South African cricket, India naturally emerged as a promising market for expansion.
However, the revised Goods and Services Tax (GST) regime, levying a hefty 28% tax on turnover, compelled Super Group to rethink its presence in the country. "The decision is straightforward. When profitability is absent, departure becomes imperative. It's simply not viable to operate under the burden of a 28% Indian GST," remarks Menashe.
While some operators persist in challenging markets, hoping for regulatory improvements or policy shifts, Super Group prioritizes present-day return on investment (ROI), prompting its withdrawal from India.
In Germany, stringent taxation on casino gaming necessitated adjustments to the gaming experience itself to ensure economic viability, Menashe notes. "Each market presents its unique challenges and regulatory pathways. While regulation of the unregulated sector is essential, penalizing compliant operators while customers flock to unlicensed establishments undermines the integrity of the regulated market."
Menashe underscores the inevitability of regulation, emphasizing Super Group's embrace of gambling oversight. "A well-regulated market fosters industry integrity, and regulators play a crucial role in curbing illicit activities."
Super Group's strategic approach to market entry and exit underscores its commitment to navigating regulatory landscapes while prioritizing sustainable growth and compliance with industry standards.
The Future of Super Group: Navigating Change and Embracing Innovation
Super Group has evolved into a global powerhouse, marking milestones such as the landmark 10-year deals with prestigious teams like West Ham and commemorating the 30th anniversary of its first online casino on January 28th—a significant moment for the entire industry. According to the CEO, gambling, coupled with the inevitability of regulation, remains a driving force propelling the industry forward into its fourth decade of development.
Artificial intelligence (AI) emerges as a pivotal element shaping the future of online gaming. "We're only scratching the surface of what innovative technologies can achieve, but their impact on the gaming industry's operations and customer interactions is undeniable," notes Menashe.
However, predicting the future of specific brands remains uncertain for Super Group's CEO, as the pace of deals accelerates in 2023 and is expected to continue into 2024. "I foresee a dramatic transformation in the industry landscape over the next five years," explains Menashe. "While maintaining healthy competition is crucial to retain our appeal to existing and potential customers."
Asserting Super Group's enduring presence in the evolving industry, Menashe emphasizes its adaptability and sustainability. "Super Group will remain a cornerstone of the industry, regardless of its evolving shape," he asserts. With Betway's global appeal attracting an international audience, the company is poised for further expansion as more markets embrace regulation.
After more than two decades of leadership at Super Group, Menashe remains steadfast in his commitment to competing at the industry's forefront. "We've built a global empire from the ground up—a testament to over two decades of ROI on marketing investments. Who else can claim such a feat?" he concludes, reflecting on the company's remarkable journey and its ongoing pursuit of excellence.
