(Ecofin Agency) - South African pay-TV operator MultiChoice announced a plan to increase its stake in BetKing, a Nigeria-based sports betting and entertainment company that has expanded its operations to Kenya and Ethiopia. The company is investing $282 million to bring its share from 20% to 49%. 

The deal, subject to regulatory approvals, was announced during the release of MultiChoice's financial results for the year ended March 31, 2021. The company sees sports betting as an attractive market that is currently experiencing strong growth worldwide. MultiChoice says it will align this business with its pay-TV offerings to take advantage of the opportunities. "We have a lot of sports on our platform, and many people that are betting on more games,” said Calvo Mawela, CEO of MultiChoice Group.

This additional investment comes seven months after MultiChoice's first commitment to BetKing. The South African entertainment giant had acquired in November 2020, 20% of the digital gaming platform for $81 million. BetKing, which offers customized virtual games and provides offline betting services, will benefit from MultiChoice's presence to continue its African growth and expand its reach on the continent. The company co-founded in 2017 by Adekunle Adeniji and Byron Petzer plans to enhance its digital entertainment portfolio and then expand into new markets.

According to MultiChoice Group, Africa currently holds only 2% of global sports betting revenues. However, the sector has seen interesting momentum in recent years, and the market is experiencing some growth on the continent.

Chamberline Moko