The reserve bank is actively investigating Super Group, the corporate entity behind prominent gambling brands such as Betway and Jackpot City, over historical offshore fund transfers.
According to an investigative report published by amaBhungane, the central bank’s financial surveillance department is examining the manner in which the group’s South African subsidiary, Raging River, paid for software licences and other services from international entities within the broader multinational structure. The investigation was formally disclosed to shareholders via a footnote in Super Group’s latest annual report.
The multinational gambling company operates through a complex international structure, with its ultimate parent company registered in Guernsey and more than 100 subsidiaries located worldwide. Recent financial records indicate that significant capital flows out of South Africa, with a Malta-based holding company receiving a dividend of R1bn from the local operations earlier this year. South Africa remains a highly lucrative market for Super Group, generating the equivalent of R11.5bn in revenue and operating at a 35% profit margin, compared to the 22% margin seen in its European and North American markets.
Addressing the investigation in its annual report, Super Group stated that the central bank’s inquiry relates to “historical transactions involving the transfer of funds from the Company to foreign / non-South African resident entities within the Super Group (SGHC) Limited group structure, allegedly in breach of the South African Exchange Control Regulations”. The company further explained that the transfers were executed in exchange for services and licences provided to its local subsidiary. While the Reserve Bank has declined to comment publicly on the matter, citing statutory confidentiality provisions, Super Group confirmed it has already paid a discretionary, refundable deposit of R30m to the central bank pending the final findings.
The conclusion of the financial surveillance probe remains pending, but the investigation has directed renewed focus towards the massive capital generated by the local gambling sector. The financial success of the South African operations has facilitated recent dividend payouts totalling nearly R4bn across the group. This extensive profitability also highlights the financial influence of the group’s major shareholders, particularly Martin Moshal, who holds a 45% stake through various trusts and has recently emerged as a significant financial backer of opposition political parties within the country.
