888 Holdings enters iGaming industry in South Africa with joint venture
Online gambling giant 888 Holdings has taken the first steps to pave the way to dominating a completely new market after launching 888Africa.
This joint-venture is one that has the potential for the iGaming conglomerate to make their mark in a market that is so far, virtually untouched by any of the bigger firms in the space.
It means that 888 will offer products of its brands to the African market, via a third party tech platform, while further casino and sports betting assets that are developed will be based on designed for specific markets, based on preferences and research.
Substantial market growth anticipated
With projected revenue of $2.3 billion 2023, South Africa is believed to become the largest market on the continent for online gambling and sports betting and with an increasing number of countries aiming to become regulated, it has become a major attraction for foreign investors.
For a number of years, there has been many question marks about the continent and how legitimate that it can be, especially with a certain amount of crime prevalent in some countries. Implementing regulation in every nation on the continent is likely to be unrealistic, however, it appears that South Africa is one of those that is primed for significant movement.
Now a company of 888s magnitude is primed to launch, this is almost a seal of approval for the market, which should help to substantially increase its profile, with the firm simultaneously gaining access to millions of customers.
CEO Itai Pazner has already indicated that Africa represents an exciting opportunity in a fast-paced market and such a move from 888 represents the strength of the group’s ambition.
Such a move will see 888 and its brands align with other industry specialists, creating 888Africa and sharing the risk with a leadership team that includes The Stars Group trio of Christopher Coyne, Ian Marmion and Andrew Lee, Editec Online's Alex Rutherford in addition to the ex-CFO of Premier Bet Helen Scott-Allen.
Another major move from 888
It has been somewhat of an eventful 12 months for 888 Holdings, having completed the £2.2 billion acquisition of the non-US assets of the William Hill brand from Caesers Entertainment last year.
This came in the midst of a flurry of deals in the industry, with firms looking to really capitalise on the potential of a number of new markets, including the ever-growing US, plus a number of new regulated countries in Latin America (LATAM).
It has been crucial for 888 to be able to make sure that it can continue to compete in an industry that has witnessed the explosive growth of its rivals over the last few years, including UK-owned conglomerate, Entain, Kindred Group and Flutter Entertainment to name just a few.
Last year also saw revenues for 888 grow substantially, by 15.4 per cent, indicating a strong forecast over the next few years. Already partly established in the US, on the sports betting side at least, it is unlikely that it will be able to dominate in the country, especially being up against such brands like FanDuel and DraftKings, however, Africa definitely represents a good opportunity for this to happen.
Written for onlinecasinogamesindia.in by Vihaan Agarwal - 31-03-2022