Tsogo Sun’s online betting revenue soars 15% amid digital expansion
New digital touchpoints are being rolled out across the group’s 14 casinos and 29 hotels to drive traffic to its online platforms.
South Africa’s gambling operator Tsogo Sun has launched more than 1,000 new casino games on its Bet.co.za platform and appointed a dedicated chief executive to run its online betting division as part of its growing focus on digital gambling.
The move brings Bet.co.za’s offering in line with the group’s larger PlayTsogo platform and forms part of a deliberate strategy to build momentum in a profitable market.
In its latest interim results, the company reported net gaming revenue from online betting grew 15 per cent to R136m (€6.8m) for the six-month period ending September 30, while adjusted EBITDA rose by 40 per cent.
Tsogo Sun noted in the report: “Based on the priority to create a larger online betting business and to expedite growth, this division may need to sacrifice a portion of its profits generated in the short term for the required investment.”
Management has already hired a new CEO for the online unit and added several senior executives with direct experience in the sector. A new betting platform, offering additional payment gateways and deeper product integration, is also planned for launch before the end of the 2026 financial year.
The company said: “Even though acquisitions are not the preferred growth method for this division, opportunities that present appropriate scaling, systems and a business fit will be considered.”
The Tsogo Sun mobile app, which combines loyalty rewards, hotel bookings and betting, passed 200,000 registered users by the end of September. New digital touchpoints are being rolled out across the group’s 14 casinos and 29 hotels to drive traffic to its online platforms.
The expansion comes against a difficult backdrop for the traditional business. Total group income for the half-year slipped 1 per cent to R5.56bn (€279.6m) and adjusted EBITDA fell 3 per cent to R1.72bn (€86.5m). Casino EBITDA dropped 4.4 per cent, reflecting weaker spending at physical venues.
To protect cash flow, Tsogo Sun halved its interim dividend to 15 cents per share. It has also started selling non-core assets, including its remaining 3.2 per cent stake in City Lodge Hotels, with proceeds earmarked for further debt reduction or share buybacks.
