Super Group sees opportunity in UK gambling market consolidation

The Betway and Spin owner Super Group is considering chances in the combining UK market while continuing to develop its existence throughout Africa.

Super Group CEO Neal Menashe thinks the business is well positioned to record income as the UK market combines.

It’s been a rough duration for the UK’s certified sector, with tax boosts for both online and land-based organizations revealed given that November 2025.

The increased tax concern has actually caused a variety of operators leaving of the marketplace, while a few of the bigger business have actually revealed store closures and task cuts.

For Super Group, its Q3 profits from the UK market through its Betway and Spin brand names was up 13% year-on-year, with total group profits increasing 10% to $611 million for the quarter.

Changed EBITDA for Q3 was $165 million, an 8% rise compared to the exact same quarter of 2025, leaving Super Group with a net earnings for the duration of $142 million.

In spite of the considerable boost in UK online betting taxes, Menashe informed iGB that Super Group is weathering the modifications reasonably well thanks to its effective operating structure.

He likewise feels Super Group can make the most of the debt consolidation of the marketplace triggered by the tax increases.

“We’re really doing alright, think it or not,” Menashe stated. “We run a very lean maker, so we combined all our UK companies. At least we can alleviate some of the taxes.

“Then the little operators do not exist any longer, so essentially we can then begin mopping up a few of that lost income.”

Menashe problems UK black market alerting

From 1 April this year, the UK’s online sector has actually dealt with a near doubling in remote video gaming task from 21% to 40%, while an increase in the device video games task for land-based operators, from 20% to 25%, was revealed in last month’s Autumn Budget.

Menashe thinks the UK sector is “overtaxed”, prompting the federal government to discover a “middle ground” when it concerns tax problems on gaming.

“I saw they increased the stores now from 20% to 25%,” he stated. “It’s more task losses.

“I believe what they do not understand, you increase it excessive, you eliminate all these operators, and the majority of them wind up ending up being black operators where you’re not getting tax anyhow. There’s no defenses, and there’s no accountable video gaming.”

Africa stays a significant development engine

Super Group continues to have success in Africa, where profits increased practically 17% year-on-year in Q3 to $262 million.

This was led by Super Group’s iGaming efficiency on the continent, with profits from that vertical skyrocketing 21.3% to $205 million.

Africa represented 43% of Super Group’s profits throughout Q3, and Menashe discussed how the business was looking beyond its recognized South African operation for other development chances in the area.

Super Group is presently functional in 8 African nations and anticipates to release in Namibia next year.

Furthermore, it’s likewise obtained authorisation in Kenya, where the group formerly had a licence however offered it up prior to its listing on the New York Stock Exchange in 2022.

With the marketplace now ending up being appealing once again following regulative reforms, Menashe stated the business had actually discovered a lesson.

“We closed the business down,” he described. “We paid our back taxes, which in fact weren’t a lot in the end. Now it’s the most affordable market in Africa.

“We’re going to go through the entire procedure once again. We ought to have simply kept it open. We’re finding out as we go, so we will not make that error.”

Super Group has actually likewise been approved licences to run both sports wagering and gambling establishment in Rwanda.

Knowing from the Kenya example, Menashe stated that taxes in Rwanda are “rather high”, however the business has actually protected the licences so that it can call up the marketing for its already-live item ought to the tax problem boil down.

“If they alter the tax tomorrow and we’re not in the market, it’s simply a lost chance,” he included.

‘Radically various’ sportsbook in Africa

Menashe discussed that Super Group’s African sportsbook company runs really in a different way from its global sports wagering operation, with parlays representing around 70% of wagering activity.

This develops a various wagering vibrant, with the capacity for substantial swings in sportsbook margins depending upon sporting outcomes.

“We are rather various to our rivals,” he stated. “We’ve practically got like 2 sports services. The Africa sportsbook is significantly various. Like 70% of it is parlays, and some can be 30 legs deep. The average has to do with 13, 14 legs. It’s practically a lotto service?

“Over time, you’ll discover that if they win huge, which is what you desire them to do gradually, it simply takes you a bit longer to get them back, however the retention is constantly there.”

Super Group’s disciplined technique

Super Group completed Q3 with money and money equivalents of $602 million, raising the concern of whether M&A might be on the cards.

Menashe highlighted the business’s conservative technique to M&A, mentioning: “The factor we have not purchased any other organizations like ours is every time we went in to look at them, the costs were simply insane.”

Menashe stated Super Group will just purchase business that it feels it can include worth to, including: “We do not simply purchase standalone companies and leave them alone.

“We are conservative. We aren’t heading out and purchasing companies with great deals of financial obligation. That’s simply not us. M&A needs to bolt on to what we’re taking a look at.”