THE CHANGES IN THE PUNTER PROFILE AND THE POSSIBLE IMPACT TO THE GAMBLING

REGULATORY LANDSCAPE IN AFRICA

PRESENTED TO THE IAGR CONFERENCE JOHANNESBURG : 16 – 19 OCTOBER 2017

EDWARD LALUMBE CHIEF OPERATING OFFICER

PRESENTATIONOUTLINE

§ Introduction § Impact of change in punter profile on GGR in SA § Drivers of sports betting growth in Africa § Smartphone adoption in Africa § Product improvements and regulatory challenges § Conclusion

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INTRODUCTION

§ Competitive market; § New Products; §  Impact on stakeholders; § Regulatory challenges

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TRENDINGGR,COMPARISONALLMODES(FY2010–F72017

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§ Youthful population and high unemployment

§ High Potential for addiction

§ Lax laws on sports betting

§ Passion for sports

DRIVERSOFSPORTSBETTINGGROWTHINAFRICA

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§  It is a skilled game. Appeals to an intelligent and thoughtful punter

who studies the form and places a careful wager

§  Caters for all types of punters: −  Traditional −  Technically savvy - millennials

§  Instant gratification

§  Growing internet penetration and widespread use of mobile phones

DRIVERSOFSPORTSBETTINGGROWTHINAFRICA-ConAnued

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SMARTPHONEADOPTIONGOWINGINAFRICA

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SMARTPHONEPENETRATIONINAFRICA

§ Millennials in SSA use mobile phones to bet on football § 54% of youth in SSA have gambled § Youth participation in gambling

− 76% - Kenya − 57% - Uganda − 42% - Ghana

§ Use of mobile phones for betting

−  96% - Kenya −  48% - South Africa

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KENYAMOBILEPENETRATION

§ M-Pesa is a small value electronic payment and store of value accessible from

ordinary mobile phones §  Launched in 2007 by Safaricom mobile network operator §  Used by over 17m Kenyans – two thirds of adult population §  25% of countries GDP flows through it

§  Also launched:

− Tanzania − Afghanistan −  India

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PRODUCTIMPROVEMENTSANDREGULATORYCHALLENGES

§  In-play betting § Opportunity to bet across channels §  Single bet vs multiple bet §  Affiliates §  Advertising §  New payment methods §  Cross border operations §  Betting on the outcome of the lottery §  E-Sports

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E-SPORTS–GROWTHPROJECTION

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E-SPORTSREGULATORYCHALLENGES

§  Underage gambling

§  Integrity of the game

§  E-Sports

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CONCLUSION

§  Address needs of new customers; §  Collaboration.

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QUESTIONS

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THANK YOU

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