Super Group is gearing up to pursue three online gambling licenses in New Zealand. This comes as part of the Department of Internal Affairs’ upcoming licensing auction. The operator, known for its Betway brand, has already seen its New Zealand revenue rise by 14% year-over-year during Q2, despite scaling back marketing efforts. CEO Neal Menashe noted that this growth contributed to a 6% increase in revenue across their “rest of world” segment. CFO Alinda Van Wyk stated to iGB, “We’ve been operating in New Zealand for many years and it already has quite a major tax regime.” Van Wyk also confirmed intentions to pursue three out of the 15 available licenses.
In This News
New Zealand Licensing Strategy
The New Zealand government initiated its expression of interest process last month, opening the door for operators to secure online gambling licenses set to roll out in 2027. And the government aims to restrict market entries, requiring each bidder to demonstrate a minimum of NZ$7.5 million in capital. With each entity limited to three licenses, Super Group isn’t the only contender—Entain has also expressed interest in the maximum number of licenses. The limited license cap ensures that only well-capitalized, established firms can enter the playing field. The intent here is clear: to avoid market saturation and focus on quality over quantity. Industry watchers aren’t surprised by this measured approach.
Gains and Moves in the UK Market
On the UK front, Super Group reported a 19% increase in revenue across Europe to $132 million for the same quarter. Though exact UK figures were not disclosed, the region’s performance implies solid gains. CEO Menashe claimed that the firm’s modest presence in the UK allows them to capture more market share following the Remote Gaming Duty tax hike in April. Super Group has ramped up efforts, finalizing a sponsorship deal with Premier League’s Manchester United. This aims to bolster brand exposure not just in the UK but also internationally, with a particular focus on Africa. CFO Van Wyk underscored the importance of optimizing marketing strategies: “We’re happy with that performance. But it’s so important to note that by optimizing marketing… it just delivers better margin in that jurisdiction.”
Prospective Acquisitions and Product Enhancements
When asked about potential mergers and acquisitions in the UK, Van Wyk hinted at future opportunities, suggesting that some smaller operators might reevaluate their positions, thus opening merger possibilities. While traditionally known for its sports betting, Betway is enhancing its online casino offerings. The company recently completed a project to centralize its tech and product platforms, boosting World Cup casino cross-sell to 50% of new customers. Super Group’s enhancements have paid off, evidenced by their raised full-year revenue forecast to over $2.6 billion—up from $2.55 billion. And adjusted EBITDA also climbed to more than $710 million, reflecting a notable quarter-over-quarter improvement. The uptick in profit was drastic as well, shifting from a negative $3 million last year to a solid $123 million this quarter.
Looking Ahead
The next major focus for Super Group will be the New Zealand licensing auction and its potential moves in the UK market. With an eye on acquisitions and continued product enhancements, the company seems poised for future growth. Keep an eye out for the upcoming license decisions set to unfold in 2027.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
