Tsogo Sun is the leading hospitality and entertainment company in South Africa. With more than 50 years of experience in the industry, Tsogo Sun has plans to buy a stake in one of the country’s leading sport betting websites, Betcoza. Buying a majority share of 50.1% of the company for the sum of R49 million. This adds another gambling offering to Tsogo Sun’s 13 land-based casinos, spanning Southern Africa. Taking a keen interest in sports betting looks to be a positive step forward for Tsogo Sun.
Betcoza was founded in the wake of the 2010 FIFA World Cup, wanting to share in the opportunity that came with sports and the bets that go along with it. The company currently offers lotteries, sports betting, horse race betting and even includes eSports. Tsogo Sun will be gaining a great partner to help walk the company through a new revenue stream. Betcoza is regulated by the Western Cape Gambling & Racing Board, which also allows residents to bet on international sports. Betcoza has the sports fan in mind and aims to improve the sports-watching experience, by adding betting to the pot for that extra bit of excitement. Betcoza has also become a client of SBTech in April 2020, which offers online sportsbooks with iGaming and sports betting platform software and solutions.
Tsogo Sun’s structure was recently restructured that split the company into Tsogo Sun Hotels and Tsogo Sun Alternative Gaming Investments. The latter is making strides to improve the gaming industry in South Africa, to offer residents more options when it comes to entertainment and gambling. The transaction helps Tsogo Sun transition into the online sports betting market through a tried and trusted business. The deal is reported to include an indirect interest in retail sports betting from Betcoza, which also spans other provinces like Limpopo and Gauteng.
Being a leader in hotel management, Tsogo Sun felt quite a blow financially once coronavirus restrictions were put in place. Other revenue streams were being explored and investing in more online activities should help maintain their bottom line.
Even though online casino offerings from South African companies are currently prohibited within its borders when regulations eventually change to allow for more freedom in the gambling industry, the acquisition of a majority share in Betcoza puts Tsogo Sun at the forefront to take full advantage of the online gambling market. Betcoza has expansions planned with Betgames.TV that will see growth for the company and profits for Tsogo Sun, not to mention a return on investment.