The South Africa sports betting market continues to grow in both retail and mobile categories. Learn the five most important trends in the market, and insights on how to build a marketing bridge between today's market and the inevitably more mobile future.

1. Growing Rapidly into a Mobile Future
April 2017
The 5 Most Important Trends
in
South African Sports Betting

2. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
Executive Summary
Five Most Important Trends in SA Sport Betting
Velocity: SA sports betting is a rapidly expanding market
Positioning: Sports betting is a core component of SA gaming growth
Retail: Number of betting shops supports growth
Mobile: Online sports betting is highly mobile
Future: Sports betting growth outlook is strong
Key Learnings and Recommendations
About Chalkline Sports
Contents
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3. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
South African Sports Betting Market Continues Strong Growth
The South African sports betting market continues to grow rapidly, and
PricewaterhouseCoopers (“PwC”) projects strong double-digit growth through 2020.
Strong Retail Infrastructure Continues to Expand
The number of South African retail outlets has increased 24% over the past three
years, and solid retail growth is predicted through the 2018 World Cup.
Highly Mobile Population has High Smartphone Usage
At 37% smartphone penetration, South Africa leads the continent.
Profitable Opportunity to Bridge Online-to-Offline (O2O) Shift
The opportunity for operators who develop marketing strategies that bridge the retail-
to-mobile shift can maintain retail margins while improving convenience and
increasing volume via mobile.
Executive Summary

4. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
South African Sports Betting Continues Strong Growth1
478
847
1,004
1,582
2,403
R0
R500
R1,000
R1,500
R2,000
R2,500
2011 2012 2013 2014 2015
Millions
South Africa Sports Betting GGR (in Rand, Millions)
+48.2%
2011 – 2015 CAGR
Source: Gambling outlook: 2016 – 2020 • South Africa, PWC

5. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
Sports Betting is Significant Share of Total South
African GGR with Room to Grow2
0%
5%
10%
15%
20%
25%
30%
35%
40%
USA South Africa UK
Sports Betting as a Percentage of National GGR
SA Sports Betting Market Facts
Fastest-growing category in 2015
+28.5% increase in YoY GGR
Increased YoY share of total GGR to 17% from 14%
Source: Gambling outlook: 2016 – 2020 • South Africa, PWC

6. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
Retail Outlets Grow to Support Market3
Source: National Gambling Board of South Africa
0
50
100
150
200
250
300
350
400
450
500
2013 2014 2015
Operational Bookmaker Outlets
+24%
2013 - 2015

7. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
South African Online Market is Highly Mobile4
Source: Sampling of Online Operators
Online Betting by Device Type
Smartphone Fact
37%
of South Africans
own a smartphone,
the highest rate in Africa
(Pew Research)
30%
Desktop
70%
Mobile

8. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
Strong Growth Forecast Through 2020
R0
R1,000
R2,000
R3,000
R4,000
R5,000
R6,000
2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E
Millions
South Africa Sports Betting GGR Actuals and Projections (in Rand, Millions)
5
Source: Gambling outlook: 2016 – 2020 • South Africa, PWC
+15.8%
Estimated CAGR: 2016 - 2020

9. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
Developing an Online-to-Offline (O2O) strategy that
complements existing mobile efforts is imperative and
timely, given current market trends.
Operator product strategy (internal and software
providers) must reflect the Mobile-First nature of
customer consumption and transaction habits.
Operators must put metrics in place that measure their
ability to engage customers via retail and mobile.
Insights

10. www.chalklinesports.com 5 Most Important Trends in South African Sports Betting
The Chalkline team has operated sports books in Africa and
North America and built marketing automation tools around the
event lifecycle for 15+ years.
Chalkline Sports partners with sports books to:
Acquire new customers throughout the event lifecycle.
Convert single bets into loyal customers.
Drive greater customers lifetime value.
The Chalkline marketing automation platform delivers engaging,
personalized, snack-sized mobile content to punters across
devices and channels.
Chalkline is built to bridge affiliate and loyalty programs,
amortizing customer acquisition costs across an ever-
increasing customer lifetime value.
About Chalkline Sports
Meet the Chalkline Team

11. Connect
www.chalklinesports.com
hello@chalklinesports.com
@ChalkLineSports
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