Racing company Phumelela believes old-fashioned betting shops will retain their importance. It opened two Supabets megastores in December, will open another in April and plans to open at least eight more of its own shops. The company is also running a franchise initiative under its Betting World and TAB brands and is looking for new partners, even if they have no experience in gaming or betting.
Online betting is fine, horse racing company Phumelela said on Wednesday, but there is still a place for old-fashioned betting shops.
And it plans to set up more of them in the near future.
But the trend shows an increase in the popularity of online bookmakers. According to Bettinglion.Africa the number of new players at the best betting sites in Nigeria in the first quarter of 2021 was 38% more than in the same period last year. Conclude for yourself.
"Retail shops remain popular with our customers and they are a place to get together and have fun with other punters," Phumelela said in a commentary on the half-year results to the end of January. "OTC betting [OTC betting] will continue to generate an important share of betting revenue for the foreseeable future."
The company generated R627 million in gross betting revenue in the six months, up 5.3%, despite what the company called tough economic times for its players.
Phumelela was set up for corporate racing in Gauteng, and it now runs racecourses and bets across much of the country. Its largest shareholder is the Thoroughbred Horse Trust.
The company's Betting World and TAB outlets are already familiar, but it has told shareholders it is opening new shops under both brands, as well as under its joint venture Supabets.
It opened Supabet megastores in Kempton Park and Pretoria in December and a third in Johannesburg's central business district will open in April, it promised.
"Eight more shops have been identified and will open in due course."
He also plans to actively develop franchising - with partners who need not have experience in betting.
In 2016, Phumelela struck its first franchise deal in the Northwest, investing R20 million and taking a 5% stake in a chain of 10 new outlets. In January this year, he said, he increased his stake and invested another R20 million to expand the chain.
"The franchise initiative will be rolled out to other provinces where new betting licences will be issued to previously disadvantaged local individuals," the statement said, without giving details.
To meet licensing and regulatory requirements, franchisees must be from a previously disadvantaged group, but this is the only major requirement.
"Franchisees do not need prior betting or betting experience as the group provides a turnkey solution with fully managed odds in addition to the group's well-known brands," says Fumelela.