Sun International considers M&A and expansion outside of SA in SunBet growth drive

Sun International is exploring mergers and acquisitions alongside international expansion as it seeks to accelerate growth for its SunBet online betting brand, with CEO Ulrik Bengtsson signalling the company sees “plenty of inorganic opportunities” to drive its next phase of development.

The South African operator reported that revenue from SunBet surged 35.5% year-on-year to R1.18 billion ($73.6 million) during H1 2026, significantly outpacing the 19% overall growth of South Africa’s online market during the same period. The strong online performance helped drive Sun International’s group income up 7.4% to R6.58 billion during the first half.

Speaking on the company’s post-H1 earnings call on Monday, Bengtsson indicated that Sun International maintains a high bar for potential investments but is actively assessing consolidation opportunities both within South Africa and in new markets.

“In terms of the SunBet business, there might be opportunities to consolidate locally, but there might also be opportunities outside of South Africa. We are looking at all of it, but we have a very high bar for what we deem to be good investments,” Bengtsson said.

Geographic expansion underway

SunBet has already begun its international expansion, launching in Namibia in May 2026 with Bede Gaming powering its platform. The brand now operates in three markets: South Africa, Botswana (entered in 2024), and Namibia, all utilising Bede Gaming’s platform infrastructure.

At Sun International’s Capital Markets Day in March, the company revealed it was assessing expansion opportunities in Zambia, Kenya and Ghana, suggesting a broader African growth strategy is taking shape.

The company had previously outlined plans to double SunBet’s share of the South African online market from its 4.5% baseline, though it did not provide an update on market share progress during the latest earnings call.

Product development and sportsbook opportunity

Bengtsson emphasised that product improvement remains central to SunBet’s growth strategy. The company recently launched a new user interface for SunBet in both South Africa and Botswana, with further enhancements planned for the remainder of the year.

A significant opportunity lies in sports betting, which currently represents just 10% of SunBet’s business compared to 90% for casino. Bengtsson noted that Sun International is “under-indexing on sportsbook” relative to the broader market, where sports betting accounts for approximately 35-40% of activity.

“That is the delta we have to close by delivering a better product and better operational intensity in our sports business,” Bengtsson stated. He added that momentum from the summer’s World Cup had continued into the second half of the year, despite a low sportsbook activity environment in July when most football leagues were closed.

Land-based synergies support online growth

Sun International’s land-based casino segment returned to growth for the first time in three years, with revenue increasing 1.5% to R3.42 billion. The company’s market share in South Africa grew 2.3% to 49%.

Bengtsson highlighted the synergies between the company’s land-based and online operations, noting that while the vast majority of land-based customers play online, not all are using SunBet. “We look increasingly at our business as one customer ecosystem or one customer platform,” he said. “SunBet probably wouldn’t be where it is today without a land-based business, and a land-based business probably wouldn’t be where it is today without SunBet.”