Super Group Grows UK Revenue 34% in Q2 Despite Online Tax Increase

Betway owner Super Group reported a 34% year-on-year revenue increase in the UK for Q2, despite it being the first quarter in which a significantly higher remote gaming duty (RGD) rate was in place.

The operator did not provide specific numbers regarding what its UK revenue has specifically grown to, but overall group revenue for the quarter was $684 million, up 18% (£508.7 million).

There was a particularly strong increase in Africa, where revenue went up 36%, and the UK was part of a successful quarter in Europe, where revenue was up 22%.

Riding out the RGD storm

From the start of April, RGD in the UK, paid on online casino bets, was raised from 21% of gross gambling yield (GGY) to 40%. The increase in RGD may have been offset by the start of the FIFA men’s World Cup in North America, which began on June 11 and ran through to the start of Q3, finishing on July 19.

However, there will be further tax issues in the UK going forward, with general betting duty, paid on online sports bets, being raised from 15% of GGY to 25% in April 2027; bets on horseracing will be exempt from this increase.

There could be additional fears about future regulatory hurdles, with new Prime Minister Andy Burnham not expected to take a lighter approach to gambling regulation.

Efficiency is key

Speaking on a Q2 earnings call, Neal Menashe, Super Group CEO, spoke about how the operator has had to be smart in its UK operations to navigate the tax increase. Menashe told investors:

“As we deploy more of our sports product enhancements, we’re seeing the revenues stick even more. That’s really been great.

“Plus, we’re being clever in our casino operations there, and the whole market has now reassessed the UK market and the cost of acquisitions etc. We’re definitely seeing that play. Remember, we’re not a major player in the UK. There’s a lot of market share we are getting.”

Alinda van Wyk, Super Group’s Chief Financial Officer, added:

“We had significant product improvements in the UK in this quarter. If your taxes go up, you have to be efficient around your marketing spend and all your economics. We have to improve every single dollar we spend in the UK. We’re very happy with how the UK is going.”

UK sponsorship still prominent

Earlier this week, Super Group announced a multi-year partnership with Manchester United, making Betway the English Premier League football club’s Official Principal Partner and Exclusive Global Betting Partner.

Betway’s logo will feature on the training kits of United’s men’s and women’s teams, and Betway’s branding will feature prominently on home matchdays.

While the Premier League has introduced a voluntary ban on front-of-shirt sponsorship, all other types of sponsorship, such as sleeve sponsorship, training kit sponsorships and betting partnerships, are still permitted.

The deal with Manchester United means Betway is now partnered with the top three Premier League teams from last season, as it also has deals in place with Arsenal and Manchester City.

This is particularly useful to Betway’s operations in Africa, where the Premier League is very popular. Menashe said:

“We’ve got our overall brand that we show with Man United, Arsenal etc. We amortise that over all the countries, not just the UK. In the UK, obviously, it’s present a lot. It gets a natural spillover as well.”