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.
