Multichoice acquires 20% stake in Nigeria’s BetKing
MultiChoice, a South African Pay-Tv Company which operates DStv and GOtv has acquired a 20% stake in Nigeria’s sports betting company, BetKing for $81 million (R1.3 billion), with the potential for a further payment of $31 million (R500 million).
With the new investment, MultiChoice seeks to ramp up its revenue without relying on the capacity to ship more money to hold football rights in European capitals; In the same vein, Multichoice does not just want to live on European soccer rights, which keeps rising on aggregate price, affecting margins in a continent where consumers discover alternative ways to be entertained.
As the group exercises significant influence over BetKing, the business will be equity accounted as an associate from 1 October 2020 by MultiChoice. The company said the deal is part of its plans to expand its entertainment ecosystem. The group also intends to further expand its entertainment ecosystem and revenue prospects by offering new products and services and by pursuing new growth opportunities.
Launched in 2018, BetKing is a high-growth sports betting group with operations in Nigeria, Kenya and Ethiopia which has built an agent network numbering “more than 8,000 in part through a commission structure that offers shop-owners up to 30%, for transactions via equipment it provides, with the promise of payment within 24 hours.”
In order to hit the high commission payments, agents must push players towards high-risk bets. Those who do not will earn 1% instead.
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