South Africa has long been a leader in the African gaming market, and now the country is entering a new phase of growth. Greentube, a digital gaming and entertainment brand under Novomatic, is increasing its investment in this market, leveraging a "revolutionary" technology stack to break into online and physical gaming operations, aiming to stand out in the increasingly fierce competition. Michael Bauer, Chief Product and Revenue Officer at Greentube, elaborated on the opportunities and challenges faced in the South African market during an interview.
Gaming Giant Targets African Bridgehead
According to H2 Gambling Capital data, by the end of March 2024, South Africa's annual gaming gross revenue (GGR) will reach $3.37 billion, accounting for more than one-third of the total African gaming revenue, despite the country's population only accounting for 4% of the total African population. The nation's 37 physical casinos contribute about $1 billion in revenue, while the online gaming sector is growing even more rapidly, with sports betting revenue increasing by 51.2% annually, nearly half of which comes from online betting.
In South Africa, a country that loves rugby, football, and cricket, the appeal of online casinos is also rapidly rising. Greentube has been committed to expanding its global market share, and is now striving to position itself as a leading provider of gaming content in the South African gaming industry.
Greentube Opens Market Doors with "Book of Ra"
As the digital division of Novomatic, Greentube has already been positioned in the African market. About a year ago, the company decided to formally enter the South African market. Although online casinos have not yet been fully legally recognized in the country, existing sports betting licensing frameworks have enabled platforms to offer online casino content.
Bauer stated, "We believe there is still huge growth potential for online casino business in South Africa. Physical casinos have cultivated a large number of players, and online experiences will naturally follow." He also pointed out that the parent company Novomatic continues to launch physical machine content targeted at the South African market.
Leading Innovation with Mynt Technology Stack
Greentube's "secret weapon" in South Africa is a new technology stack called Mynt. Launched in early 2023, it features a modular architecture, cloud deployment, and interactive tool support, significantly reducing latency and enhancing game development efficiency.
South Africa has become the first regulated market for Mynt, and the platform has also been activated in multiple test markets. Bauer stated, "Mynt allows us to expand quickly, easily create native features, such as free spins, cumulative bonuses, tournaments, etc."
He admitted that compared to Europe, the entry path in the South African market is more complex, "Everything is a bit slower, but our local team has provided tremendous support."
Multichannel Cooperation Advances Local Layout
Thanks to Novomatic's solid foundation in South Africa, Greentube can quickly connect with local major operators. Bauer revealed that the company is advancing through both online and offline channels, reaching cooperation with mainstream platforms such as Sunbet, Goldrush, and Supabets. Additionally, more cooperation plans will be announced in the short term.
Greentube's popular game "Book of Ra" is widely popular locally, and this slot machine product, which is simultaneously launched on physical and online platforms, helps the company quickly open market doors. In the future, the company will also introduce more localized products, including crash games developed by Capecod (an Italian subsidiary), which are heating up in the South African market.
Bauer said, "Our next step is to gather feedback from players and operators, then continue to refine our products. We are currently preparing to launch several popular slot games, including 'Wukong,' 'Piggy Prizes,' and 'Fortune Wand 2,' all of which are worth looking forward to."
Regulations Complex but Potential Huge
The main challenge in the South African gaming industry lies in the decentralized regulatory system. Although the "Remote Gambling Act" was proposed as early as 2008, it has not yet been formally legislated, and the current online casino business still relies on the sports betting licensing framework. Each of the nine provinces has its own licensing and regulatory system, far more complex than the European market.
Bauer pointed out, "Although the regulations vary, the path still exists. We just need to find the right method and invest more time in integrating processes."
South Africa as the Gateway to Africa
Looking ahead, Bauer sees South Africa as a strategic springboard for entering the entire African continent. He stated, "We hope to integrate Mynt to build a continuous content delivery channel, covering most operators and aggregation platforms." In terms of physical business, Novomatic will also bring more locally adapted content.
Meanwhile, Greentube's globalization strategy continues to advance steadily. The company is expanding in North America and Latin America, focusing on the Czech Republic and Slovakia in Europe, and strategically positioning in high-potential markets such as the Philippines and UAE in Asia.
"We still have many goals to achieve, and we must continue to consolidate our leading position in existing markets," Bauer stated, "but South Africa is undoubtedly one of the most influential target markets at present."
