Industry veterans team up with 888 for new Africa joint venture
Former The Stars Group executives spearhead 888AFRICA with launches planned in four African markets during 2022
888 has inked an agreement with five igaming industry veterans to launch a new joint venture business targeting the African market.
Revealing details of the agreement, the London-listed operator has confirmed it has invested a minority stake in the new joint venture business, 888AFRICA, but has options to increase this stake to take control of up to 100% of the business in the future.
Former The Stars Group (TSG) alumni Christopher Coyne, who was CMO and chief customer officer at the operator, will be joined by Andrew Lee, former MD of TSG’s sportsbook and current chairman of Voxbet, and former sportsbook trading director Ian Marmion.
The five-strong group is rounded out by former William Hill and Editec Online chief product officer Alex Rutherford and Helen Scott-Allen, who was previously CFO of Premier Bet.
Coyne will become 888AFRICA’s first CEO, with the business’ other executive roles still to be confirmed.
Speaking about his new role, Coyne highlighted the synergies of partnering with 888.
“With our team of experienced professionals and significant knowledge of the African markets, it is our ambition to build the business towards market-leading positions in selected regulated markets across the region.
“Partnering with 888 will give us access to a world-class brand, as well as a broad team of experts to support our growth plans, further enhancing our confidence in our future prospects,” he added.
Under the terms of the agreement, the 888AFRICA business will pay a brand licence fee to 888 to utilise its product portfolio in “selected” regulated markets in Africa.
These brands will operate via an unnamed third-party technology platform, with 888AFRICA operating a localised brand and products tailored for the African market.
888 CEO Itai Pazner lauded the new joint venture business and its “impressive roster” of industry talent.
“The new JV will launch 888’s world-class online betting and gaming brands to millions of new customers in the exciting and fast-growing African online market,” Pazner said.
“The structure of this deal enables the group to invest in a strong business with high growth ambitions, without distracting focus from our core business and key strategic markets.
“We look forward to being a part of 888AFRICA’s journey as it grows its footprint and increases brand awareness, while also offering potentially significant long-term opportunities for the group in the future,” Pazner added.
London-based firm Oakvale Capital LLP acted as financial adviser and Herzog Fox & Neeman acted as legal adviser to 888 on the joint venture agreement.
Africa remains largely an untapped market for European operators, however operators including Betsson Group, Betway and Entain have all launched operations on the continent.
In the case of Entain, this has been via its joint venture business, Impala Digital, as part of a commitment to build out a technology and product led offering for Africa in 2022.
Further information on the regulation of the African market can be found here.