Super Group sees opportunity in UK gambling market consolidation

Super Group CEO Neal Menashe believes the company is well placed to capture revenue as the UK market consolidates.

It’s been a turbulent period for the UK’s licensed sector, with tax increases for both online and land-based businesses announced since November 2025.

The increased tax burden has led to a number of operators dropping out of the market, while some of the larger companies have announced shop closures and job cuts.

But for Super Group, its Q3 revenue from the UK market through its Betway and Spin brands was up 13% year-on-year, with overall group revenue increasing 10% to $611 million for the quarter.

Adjusted EBITDA for Q3 was $165 million, an 8% surge compared with the same quarter of 2025, leaving Super Group with a net profit for the period of $142 million.

Despite the significant increase in UK online gambling taxes, Menashe told iGB that Super Group is weathering the changes relatively well thanks to its efficient operating structure.

He also feels Super Group can take advantage of the consolidation of the market caused by the tax rises.

“We’re actually doing alright, believe it or not,” Menashe said. “We run a super lean machine, so we consolidated all our UK businesses. So at least we can mitigate some of the taxes.

“Then the small operators don’t exist anymore, so basically we can then start mopping up some of that lost revenue.”

Menashe issues UK black market warning

From 1 April this year, the UK’s online sector has faced a near doubling in remote gaming duty from 21% to 40%, while a rise in the machine games duty for land-based operators, from 20% to 25%, was announced in last month’s Autumn Budget.

Menashe believes the UK sector is “overtaxed”, urging the government to find a “happy medium” when it comes to tax burdens on gambling.

“I saw they increased the shops [MGD rate] now from 20% to 25%,” he said. “It’s more job losses.

“I think what they don’t realise, you increase it too much, you get rid of all these operators, and most of them end up becoming black operators where you’re not getting tax anyway. There’s no protections, and there’s no responsible gaming.”

Africa remains a major growth engine

Super Group continues to have success in Africa, where revenue increased almost 17% year-on-year in Q3 to $262 million.

This was led by Super Group’s iGaming performance on the continent, with revenue from that vertical soaring 21.3% to $205 million.

Africa accounted for 43% of Super Group’s revenue during Q3, and Menashe explained how the company was looking beyond its established South African operation for other growth opportunities in the region.

Super Group is currently operational in eight African countries and expects to launch in Namibia next year.

Additionally, it’s also applied for authorisation in Kenya, where the group previously had a licence but gave it up prior to its listing on the New York Stock Exchange in 2022.

With the market now becoming attractive again following regulatory reforms, Menashe said the company had learnt a lesson.

“We closed the company down,” he explained. “We paid our back taxes, which actually weren’t a lot in the end. Now it’s the cheapest market in Africa.

“We’re going to go through the whole process again. We should have just kept it open. We’re learning as we go, so we won’t make that mistake.”

Super Group has also been granted licences to operate both sports betting and casino in Rwanda.

Learning from the Kenya example, Menashe said that taxes in Rwanda are “quite high”, but the company has secured the licences so that it can dial up the marketing for its already-live product should the tax burden come down.

“If they change the tax tomorrow and we’re not in the market, it’s just a lost opportunity,” he added.

‘Radically different’ sportsbook in Africa

Menashe explained that Super Group’s African sportsbook business operates very differently from its international sports betting operation, with parlays accounting for around 70% of betting activity.

This creates a different betting dynamic, with the potential for significant swings in sportsbook margins depending on sporting results.

“We are quite different to our competitors,” he said. “We’ve almost got like two sports businesses. The Africa sportsbook is radically different. Like 70% of it is parlays, and some can be 30 legs deep. The average is about 13, 14 legs. It’s almost a lottery business, right?

“Over time, you’ll find that if they win big, which is what you want them to do over time, it just takes you a bit longer to get them back, but the retention is always there.”

Super Group’s disciplined approach

Super Group finished Q3 with cash and cash equivalents of $602 million, raising the question of whether M&A could be on the cards.

But Menashe highlighted the company’s conservative approach to M&A, stating: “The reason we haven’t bought any other businesses like ours is every time we went in to look at them, the prices were just crazy.”

Menashe said Super Group will only invest in companies that it feels it can add value to, adding: “We don’t just buy standalone businesses and leave them alone.

“We are conservative. We aren’t going out and buying businesses with lots of debt. That’s just not us. M&A has to bolt on to what we’re looking at.”