South African pay TV operator Multichoice has announced that it acquired a 20% stake in BetKing, a gambling company with major operations in Nigeria. The value of the deal is said to be worth R1.8 billion.
The BetKing 20% acquisition was disclosed this week by Multichoice CEO, Calvo Mawela, during a news briefing to discuss MultiChoice’s new deals.
Nairametrics reported in 2018 that an estimated 60 million Nigerians between the ages of 18 and 40 were involved in active sports betting, with almost ₦2 billion being spent on sports betting daily in Nigeria. This translates to nearly ₦730 billion in a year.
Several sports betting companies have emerged in the country, such as Bet9ja, Nairabet, Merrybet, Naijabet, BetKing, Sporting Bet, Surebet24, and many others.
In July that BetKing announced a sponsorship deal with the Football Kenya Federation (FKF). This was adjudged the biggest sponsorship deal in the history of Kenyan football.
Valued at $11 million (1.2 billion Kenyan shilling), the new sponsorship deal will end in 2025. According to the FKF, each club in the Kenyan league will receive 8 million Kenyan Shillings a year ($1= 107.85 Kenyan shillings) thanks to this partnership.
MultiChoice CEO added that sport betting augments their business as sport is major revenue source for the company. He also stated that BetKing has grown fast in Nigeria and plans on expanding to South Africa.
“We have a lot of sport on our platform, and many people that are betting watch more games.”he said.
“They plan to be pan-African and will be entering South Africa at some stage too,”
Reuters reports that the deal would be valued at $81 million upfront, “with a further $31 million performance-dependent payment possible later.”