Is South Africa Betfair's Next Target Market?

Published: Friday, March 03, 2006 Online-Casinos.com

IS SOUTH AFRICA BETFAIR'S NEXT TARGET MARKET?

After Betfair's expansion into Australia, is global betting exchange looking at African possibilities?

Betfair's top PR man, Richard Rumbelow gave some hints on Betfair's next strategic expansion move this week when he told South African reporters that the Betfair Gambling Group, fresh from its success in securing Australian licensing was now applying for a South African license.

Rumbelow said his company aimed to establish a locally licensed black empowerment company, and had started investigating SA as an investment destination almost 18 months ago.

He described the local gaming market as having been bursting at the seams over the past couple of years, as the country's consumers benefit from the lowest interest rates seen in more than 25 years and buoyant economic conditions.

Rumbelow said SA was an important jurisdiction for the group because of its close cultural links with Europe and Australia.

Without divulging figures, he said the group was looking at making a multimillion rand investment in SA, and had already earmarked a potential empowerment partner.

"From our point of view, black empowerment is not a challenge, and it can be used to unlock some initiatives we want to do" he said.

Rumbelow said the group was still in talks with the National Gambling Board on policy for interactive gaming.

The board's report on the regulation of interactive gambling, released last November (see previous InfoPowa reports), said its research suggested that it was possible to create a regulatory environment in the country that would attract reputable South African companies to locate their interactive gaming operations in the country.

"Once the industry begins to emerge, the possibility exists that one or more leading interactive gaming operators might choose to locate some or all of their operations here" the report states.

Rumbelow said sports betting in SA was entirely focused on horse-racing, which was not found elsewhere in the world. He said horse racing was an established product but in need of internationalisation.