Tsogo Sun, a South African gaming and entertainment firm, has entered the nation’s sports wagering market by acquiring a controlling interest in Betcoza, a local land-based and internet-based operator.
Tsogo Sun Alternative Gaming Investments, a subsidiary of Tsogo Sun, will pay 49 million rand for its share in the online sports betting enterprise behind Bet.co.za.
As part of the agreement, they will also receive a portion of Betcoza’s retail sports betting permits, which encompass Gauteng and Limpopo provinces.
The company stated the deal presents a favorable opportunity for them to enter the online betting market through an already established enterprise.
The transaction was approved by the Johannesburg Stock Exchange as it was a minor transaction between associated parties. The stake was purchased from a subsidiary of Tsogo Sun’s primary shareholder, Hosken Consolidated Investments.
The 51% stake was valued at 36.7 million rand and had a minor loss of 3 rand as of March 31, 2020.
A sum of five million yuan has been categorized as an asset.
Tsogo Sun publicized the details of this agreement following their June announcement that they were in the “final stages” of entering the online sports wagering market. The company explained that they were seeking new income sources as their primary hotel and brick-and-mortar gambling operations had been “significantly affected” by the novel coronavirus (Covid-19) pandemic.
The company further stated that providing online casino games was a “logical step” despite the sector currently being prohibited in South Africa.
In April, Betcoza became SBTech’s initial client in South Africa after the company secured an agreement with DraftKings-owned supplier to launch its sports betting and online gambling platform, driven by custom trading and risk management strategies tailored to the market.
This will also enable the expansion of Betcoza’s lottery offerings through integration with BetGames.TV, allowing participants to wager on live dealer games and live lottery draws.
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