Super Group is writing a new chapter in the online gambling industry on the African continent. CEO Neal Menashe recently positioned the company as "Africa's DraftKings," a metaphor that not only highlights its market ambitions but also reflects the substantial success the company has achieved in Africa.
The first quarter financial report of 2024 shows that Super Group's net profit in the African market soared by 105.4% year-on-year, reaching 76 million Australian dollars, with EBITDA increasing by 46.6% to 107 million Australian dollars. Such growth rates have caught the attention of global peers.
The financial data is behind a significant shift in the market landscape. Africa and the Middle East currently contribute 39% of the group's revenue, surpassing North America for the first time as the largest source of revenue. This shift stems not only from a strategic contraction in North American operations but also from explosive growth in the African market.
Menashe explained the uniqueness of the African market with an impressive set of data: "Here, a 30-40% increase in revenue can lead to almost double the profit growth, a leverage effect that is extremely rare in other markets."
Supporting this extraordinary growth is Super Group's meticulously constructed operational system in Africa. The company has integrated over 150 local payment solutions across Africa, from traditional bank transfers to emerging mobile money and cryptocurrencies. This deep payment network allows Super Group to quickly adapt to the specificities of each market.
On the technical level, the company has developed a highly modular system platform, with new features developed in South Africa deployable to new markets like Tanzania within 72 hours. This agility significantly lowers the technical barriers to market expansion.
In terms of regulatory adaptation, Super Group has built a unique advantage with 15 years of experience in Africa. The company has established a system that tracks regulatory changes in 26 African countries in real-time, allowing for rapid adjustments to business strategies.
In markets like Botswana, through innovative structures with local partners, the company has achieved an effective tax rate of 18%, significantly lower than the average of 35% in North American markets. This localization capability allows Super Group to avoid many policy pitfalls encountered by foreign operators.
The pace of market expansion is accelerating. Following a successful entry into Botswana in February this year, Super Group has set its sights on new markets with greater potential.
Ethiopia, with its population of 110 million, has become a key target, although strict foreign exchange controls pose challenges, but the company is actively seeking breakthroughs in tax policies.
Côte d'Ivoire, as the financial center of West Africa, is also on the expansion list, with payment system integration work nearing completion.
Although Angola has a low internet penetration rate, the potential for consumer upgrades brought about by the recovery of its oil economy cannot be ignored.
In the long term, Super Group's vision is even more ambitious. Egypt and Morocco in North Africa, with their developed tourism industries, will become strategic points for high-end gambling operations. The French-speaking region of West Africa plans to expand radiatively through Senegal as a hub. The company is also testing a "one code for all" system, where in the future, users can use the same account for gaming across all African markets, greatly enhancing customer loyalty.
However, the uniqueness of the African market also brings unique challenges. Political instability in countries like Niger may trigger regional regulations, and currencies like the Ghanaian cedi often depreciate by more than 40% annually, putting pressure on capital repatriation. Additionally, local illegal casinos avoid regulation through cash transactions, forming a strong alternative competition. European investors are also increasingly focusing on responsible gambling standards in the African market, bringing new ESG pressures to Super Group.
Facing these challenges, Super Group is building deeper competitive advantages. The company plans to open its risk management SaaS platform to African peers, not only creating new revenue sources but also helping to raise the compliance level of the entire industry. The digital finance academy established in Nairobi will train localized talent, and leading the development of the African online gambling association certification system shows the industry leadership of Super Group.
Menashe's vision has transcended mere commercial success: "We hope that when people talk about the African digital economy, Super Group can become synonymous with this field like the tech giants of Silicon Valley." On this vast continent with 54 countries, a business expedition that redefines the online gambling industry is unfolding. From financial data to technical architecture, from market strategy to regulatory innovation, Super Group is proving that Africa can not only nurture world-class online gambling enterprises but may also become a global innovation engine for the digital entertainment industry.
