Q&A: LulaBet makes its debut in South Africa

Cape-Town-based online sports betting startup LulaBet recently launched in South Africa. Along with gaming technology provider Amelco, which supplies the betting platform for the venture, the shared aim is to provide a world-class betting experience delivered on a state-of-the-art platform.

South Africa has the largest gambling market in Africa, with almost half of the continent’s gross gaming revenue (GGR) coming from the country. Both LulaBet and UK-based Amelco  were looking for the right time and opportunity to enter the South African market. Both companies are well positioned to navigate South Africa’s historically complex sports betting regulations and specific technical requirements, and the partnership is shaping up to be an ideal pairing.

Here, EGR Intel speaks to Iain Gutteridge, managing director at LulaBet, to find out more about the launch of the new brand.

EGR Compliance: LulaBet launched in South Africa in September. Tell us more about the planning and development behind the brand.

Iain Gutteridge (IG): In developing the brand, we took a view of what the landscape would look like in the future and what demographic our players would be from. More importantly, we also looked at what our players would want in their preferred betting platform. From our perspective, the team delivered a fresh look that was immediately identifiable. They also delivered a slick experience with an honest value proposition. Forty-six percent of the South African population understand Zulu and the word “Lula” means “easy” in Zulu, making LulaBet a natural choice for us as a brand name that would resonate with players.

EGR Compliance: South Africa has been called Africa’s ‘gambling Mecca’. Has online gambling taken over from land-based casinos and if so, why?

IG: In 2010, casino revenue accounted for 84% of South Africa’s regulated gaming revenue and betting accounted for 10%. In the year ending March 2020 (just prior to lockdowns), casino was 56% and betting 26% of regulated gross gambling revenue (GGR). Online has really got going in the last four years and the initial boom was driven by mobile penetration and the beginning of mobile cash technologies. The growth in online has been further fuelled by the local regulators approving live games and, more recently, slots. Having come from a land-based background, I don’t see online taking over as the dominant force as many players still want the experience of a trip to the casino, but there will be a natural re-ordering over the coming years.

EGR Compliance: How has LulaBet been received so far? 

IG: The initial response has been phenomenal, and we are seeming to really resonate with our target audience, the combination of the technology and our tone of delivery is topical and fresh and the value proposition we offer is hitting the mark.

EGR Compliance: What is LulaBet’s main focus and longer-term ambitions for the market? 

IG: Our current focus is to build out and optimise our business processes and delivery channels. In the longer term, Amelco and ourselves aim to be serious players in this market and others.

EGR Compliance: LulaBet partnered with UK-headquartered sports betting platform provider Amelco to power the launch. What does this agreement mean for both parties and why has Amelco described LulaBet’s launch as a ‘game changer’? 

IG: The partnership with Amelco is a brilliant match, they offer us rock-solid support in Africa along with scale-proven technology. Amelco are also very agile and able to develop quickly into South Africa’s unique product and supporting tech requirements. Our collective visions for the product and market are closely aligned and they are very committed to doing well in this space.

EGR Compliance: Do you have any special products or promotions planned for the World Cup?

IG: We do, a TV campaign coupled with a huge top award prediction game is on the way – it’s sure to be a huge hit with our players.

EGR Compliance: What challenges are LulaBet expecting to face in the short term and how will you prepare for them? 

IG: The regulatory framework and economy are both a little unpredictable in South Africa, and the recent boom of entrants to the market will no doubt cause some disruption as operators overpay for acquisition in the rush to gain share. Our approach is very simple: listen carefully to our customers and deliver what they want, and be agile enough to move with the opportunities when we see them.

EGR Compliance: Has LulaBet invested in responsible gambling measures and how will it keep players safe from gambling-related harm? 

IG: Yes, we have. We will be contributing to the local responsible gaming NGO (non-profit organisation) and our staff have been fully trained in picking up and protecting vulnerable players. The platform offers an extensive suite of responsible gaming features, and these will need to be deployed accordingly.

EGR Compliance: Looking beyond South Africa, do you have plans to launch in other markets? 

IG: We certainly do. The broader African market is our ultimate goal and we aim to build a solid operational model that can be easily tailored into opportunities as they arise. Africa is very much a frontier market that everyone is talking about, and we are a natural fit and ideally placed to take the opportunities as they present themselves.

EGR Compliance: What can we expect to see from LulaBet over the next 12 months? 

IG: The next 12 months are all about iterating our product base and building loyalty with our players. We will be amplifying our presence in the market and getting the brand solidly established.