GVC eyes Africa launch in 2021
CEO Shay Segev refuses to rule out organic entry and namechecks Kenya, Uganda and Tanzania as exciting territories
GVC hopes to enter Africa next year to capitalise on untapped online gambling opportunities across the continent.
Discussing potential market entries after rebranding as Entain PLC, CEO Shay Segev said he was keen to focus on the £50bn gross gaming revenue potential offered via territories including Africa, Latam and Central and Eastern Europe.
GVC has successfully integrated 20 businesses over the last five years and M&A is a key strategy for the FTSE 100 operator when it comes to launching in new markets.
For example, GVC entered Portugal with the €50m acquisition of bet.pt in October.
On Africa, Segev conceded it was important to consider the nuances of each market, as the gambling habits of consumers in countries like Kenya are vastly different to what GVC might be familiar with.
“Some markets are different to what we are used to,” said Segev. “African countries are more reliant on mobile with many still on 2G or 3G networks so we may have to adjust our content.
“They are also often low-staking markets with customers placing low-stakes accumulators across a large number of games,” he added.
The Israeli namechecked Kenya, Uganda and Tanzania as interesting countries amid GVC’s pledge to generate 100% of group revenue from nationally regulated markets by the end of 2023.
“Africa is a market we have been studying for the last 12 months or so,” said Segev. “It is quite exciting as there are more than 20 regulated markets in Africa which allow betting with a licence.
“What we have learned is that the technology to penetrate the market requires localisation in terms of content and customer reach – mobile payments for example are very popular.”
Segev remained coy when asked if African growth would be achieved organically or via bolt-on M&A.
He said: “It would be through a combination of our existing expertise and brands, like bwin for example, as well as our marketing and technology.
“For other expertise we would look externally to combine it together,” he added.
Click here to read in-depth market focus analysis on African territories on EGR Compliance in partnership with Dentons.