Gaming

Grand Sport

Profile

Grand Sport is a licensed online sports betting operator, offering bets on national and international horse racing and sporting events. The business was established in 2014 and trades under grandplay.co.za.

ownership structure

logo

100%
effective ownership (as at 30 June 2015)
(R8.1 million)
contribution to GPI headline earnings for the period

gpi_slots

“Grand Sport is confident that the investment in technology, supported by the rollout of retail licences, will grow the brand’s reach in a dynamic, high-growth industry.”

factsheet

managing executive

Graeme Hart

GPI directors at Grand Sport board level

Hassen Adams, Alan Keet, Dylan Pienaar

BBBEE rating

Level 2

Employees

Total employee complement: 3

Head office

Cape Town

Operational footprint

One bookmaker licence authorising online operations nationally and retail operations in the Western Cape 29 retail (premises) licences in the Western Cape (not operational as yet).

Key financial performance indicators (R’000s)

2015 2014 2013
Revenue 545
EBITDA (8 081) (422)
Net profit after tax (8 468) (422)
Shareholder loan 10 100 204 047
Total debt excluding shareholder loans 487 344
 

Operating context and performance

The online sports betting industry is highly competitive, with new operators facing stiff opposition from several established market players. Sports betting in South Africa is experiencing a growth phase, following a similar pattern to other parts of the world, despite inhibiting factors in the prevailing regulatory environment. Laws pertaining to marketing and advertising requirements are not uniformly applied across all provinces, which is a limiting factor to growth. In addition, activation processes require all customers to comply with onerous FICA requirements prior to engaging in online sports betting, which slows the potential rate of expansion. The business engages with regulators and legislators by commenting on draft bills and legislation.

In spite of these challenges, grandplay.co.za has established a foothold in the online betting market with its technically advanced and user-oriented online betting platform. The Company commenced operating in June 2014 and has shown steady growth during the period, retaining good trading percentages relative to stakes wagered. Development of an online mobile betting app was completed during the year, making grandplay.co.za one of only two operators in South Africa to offer such a product.

In addition, 29 retail betting licences have been obtained, with the intention of rolling these out during the course of the 2016 financial year, with initial focus in the Western Cape. The combination of the app and retail licences will contribute substantially to increased turnover in the coming year and establish grandplay.co.za as a serious contender in the online betting market in the short term.

Prospects

grandplay.co.za anticipates significant growth in the coming financial year. This will be achieved through a strategic drive to reduce third-party costs, implement a targeted marketing and retention strategy and make use of technical data and expertise from specialised service providers. grandplay.co.za staff will receive additional training on retention and website development to improve the company’s capability in these areas.

The long-term goal remains to grow the footprint across the country.