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Nigeria’s Betting Space Widens As MultiChoice Stakes $281.5m In BetKing - Businessday NG

by Michell Pearson (2021-10-23)

South African cable and entertainment giant, MultiChoice group, announced it will increase its stake in Nigerian betting company, BetKing, from 20% to 49% in a $281.5 million dollar deal.

South African media reported this after the MultiChoice board approved the deal.

The reports says MultiChoice is expected to formalize the offer of $281.5 million for a 49% stake in Blue Lake Ventures Limited (BetKing), adding that the board approval was given on the 10th of June, 2021.

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The board approved the formal offer to acquire more of the sports betting company in 2021.

These include finalization of the employee share incentive scheme, securing debt funding by MultiChoice and regulatory approvals by the relevant competition or antitrust authorities in several jurisdictions.

Other conditions include the agreement of an appropriate exit clause for minorities who are partially selling down to recover some of their initial investment.

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As a result of the transaction, the earn-out of $31m relating to the acquisition of the first 20% in the company will be triggered and payable.

This means that MultiChoice will have to raise a total of $294.45 million debt to complete the deal

Commenting on the deal, MultiChoice Group CEO Calvo Mawela, explained that Sports betting is an interesting market that is aligned to the company’s Pay-TV business.

"Sports betting is an interesting market that is aligned to our Pay-TV business. We have a lot of sport on our platform, and many people that are betting watch more games."

Mawela explained that most people who bet watch more games and Multichoice has lots of it on its platform.

As one of the leading sports betting companies in Nigeria, BetKing was founded by CEO Byron Petzer and Adekunle Adeniji, who once served as Bet9ja’s virtual product manager.

BetKing’s annual statement for the financial year ended December 2020 shows a growth in revenue to $77.9 million, from $54.7 million in the previous year. Meanwhile, net asset value stood at $100.2 million.

Between 2020 and 2024, the sports betting industry is expected to grow by an estimated $134 billion, a Compound Annual Growth Rate of 10%, according to Technavio.

In Nigeria, big betting players like BetKing Bet9ja, Nairabet, Naijabet, Sporting Bet, Surebet24 dominate the betting space.

In 2018, it was reported that an estimated 60 million Nigerians between the ages of 18 and 40 were involved in active sports betting.

Also, almost ₦2 billion was spent on sports betting daily in Nigeria, equivalent to nearly ₦730 billion in a year. Yet, Africa accounts for only 2% of global sports betting revenue. As the regional market begins to play catch up, it is poised for significant growth.