Africa
Tsogo Sun to Buy Stakes in Betcoza
Tsogo Sun Hotels, the major hospitality group in South African, is moving closer to acquire Betcoza, the popular online betting platform in the country.
Tsogo Sun will acquire a 50.1% share in Betcoza (popular name for bet.co.za) for a price of R49m. This will give a foothold for the hotel giant in the online gaming sector. Betcoza possesses retail sports betting rights for operation in Gauteng and Limpopo.
A press statement from Tsogo Sun confirmed the development: “The acquisition represents a strategic opportunity for Tsogo Sun Gaming to enter the online betting space via an existing, developing business. The loss attributable to the net assets that are the subject of the acquisition was R3.5m for the year ended March 31 2020.”
The acquisition is significant for two reasons.
First, Tsogo Sun’s main competitor Sun International has developed a robust online gambling platform called Sunbet, offering live games and betting from last month.
Second, Tsogo Sun’s from its core hotel sector has witnessed a massive fall owing to the Covid-19 restrictions.
A move into gaming sector was anyway imminent following the company’s split into Tsogo Sun Hotels and Tsogo Sun Gaming. The Covid-19 pandemic seems to have accelerated the move.
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