Super Group

In this “tier 2” review, we explore Super Group, a leading holding company overseeing Betway and Spin, focusing on its Environmental, Social, and Governance (ESG) practices. While awaiting the Better World Casinos (BWC) Sustainability scorecard assignment for Super Group, this analysis covers key aspects such as transparency, governance, environmental impact, social initiatives, and concerns raised by sanctions and controversies.

Last updated:25th April,2024

In this review, we aim to answer:

  1. How transparent is Super Group?
  2. Does Super Group have a robust ESG strategy?
  3. Has Super Group faced any sanctions, controversies, or legal challenges?
  4. Does Super Group have any 3rd Party Rating?

BWC Sustainability score: In this review, BWC will provide a sustainability scorecard for Super Group. As we continue to analyze more companies, we aim to offer a comprehensive assessment of Super Group’s social, environmental, and governance performance, allowing for a fair comparison among operators.

At the moment BWC has no affiliation with Super Group. Upon publication of this review we’re reaching out to them for commentary and hope to get the opportunity to talk about their  ESG performance and ambitions to determine how much of a sustainable gambling company it is and how it contributes to society.

To stay up to date on BWC latest reviews and updates, subscribe to our newsletter or follow us on X (fka Twitter)

Company Overview

Name Betway—-SGHC Limited
Company Type Public Limited Company, NYSE: SGHC
Location(s) Guernsey
Presence Online sports betting, online casino, and multi-brand online casino offerings
Products Sports betting, multi-brand casino
Brands Betway (Sports, Casino, Live Casino, e-Sports, Vegas), Jackpot City, Hippodrome Casino, Dream Bingo, Spin Casino, Brands operated by Jumpman Gaming
Licences UK, US, Malta, Italy, Denmark, Spain, Belgium, Germany, Sweden, Mexico, South Africa, Portugal, Ireland, Poland, France, Argentina
Key markets UK, Africa and Middle-East, North America, Asia-Pacific, Europe
ESG/Sustainability Report No. Waiting for the Published Audited 2023 Annual Report
Reporting standard International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS)

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About the Company

Super Group stands as a significant player in the sports betting and online casino industries, serving as the holding company for Betway and Spin. Operating on a global scale, these brands cater to customers across Europe, Africa, North America, Asia-Pacific, and Latin America. Super Group‘s reach extends far and wide, providing top-notch betting and gaming experiences to a diverse and expansive audience. With a commitment to innovation and customer satisfaction, Super Group continues to make its mark as a leading provider in the online gambling sector, offering a wide array of betting options and casino games tailored to meet the preferences of players worldwide.

The company’s flagship brand, Betway, is renowned for its premier online sportsbook, offering an extensive range of sports betting options alongside captivating casino entertainment. Betway’s global presence is fortified by licenses held across various continents, solidifying its position as a trusted and respected name in the industry. Complementing Betway, Spin stands as a premium, multi-brand online casino platform with a focus on high-growth markets. Leveraging proprietary data and advanced analytics, Spin delivers personalized and cutting-edge gaming experiences, ensuring players enjoy a secure and immersive environment. With a dedicated workforce spanning 17 countries, Super Group’s leadership team of industry veterans oversees operations with a commitment to excellence, integrity, and responsible gambling.

Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) for Super Group based on the Full Year 2023 and Fourth Quarter 2023 Financial Results

Financial Performance Summary

Key Performance Indicator 2022 (€ million) 2023 (1Q – 4Q) (€ million)
Total Revenue €1,292 €1,400
Total Operation Costs €1,213 Not specified
Total Taxes (income tax) €34 Not specified
Total Profit €182 €16.8 (FY), €(44.9) (4Q)
Total Number of Employees 600(BetWay)
EBITDA (Operational) N/A €197.3 (FY), €36.2 (4Q)

Financial Highlights

  • Total Revenue: Super Group achieved a record revenue of €1.4 billion for the full year 2023, surpassing guidance, which includes the highest-ever total revenue for a fourth quarter of €359.9 million.
  • Total Profit: The company reported a profit before tax of €16.8 million for the full year 2023, but incurred a loss before tax of €44.9 million for the fourth quarter. These results were affected by certain non-cash charges arising from changes in fair value of option liability and an impairment of goodwill.
  • EBITDA: Operational EBITDA for the full year 2023 amounted to €197.3 million, exceeding guidance, and was €36.2 million for the fourth quarter.

This analysis showcases the company’s robust financial performance, strategic objectives, and continued growth momentum in the dynamic online sports betting and i-gaming industry.

ESG Overview

In this section, we explore the Environmental, Social, and Governance (ESG) practices of Super Group. Understanding a company’s ESG commitments is crucial for investors, stakeholders, and the general public to assess its impact on the environment, society, and governance structures. We delve into Super Group’s initiatives, strategies, and performance in these key areas, shedding light on its sustainability efforts and social responsibility. For a comprehensive guide on ESG in the iGaming industry, you can visit Better World Casinos – Understanding ESG and iGaming.

ESG Strategy

Super Group is deeply committed to its Environmental, Social, and Governance (ESG) strategy, recognizing the critical importance of sustainability in today’s world. The company is dedicated to minimizing its environmental footprint through innovative technologies and practices, striving to reduce energy consumption and greenhouse gas emissions as it expands globally. Social initiatives focus on supporting the communities where Super Group operates, fostering education, health, and social welfare programs. The company believes in making a positive impact on society, enhancing lives, and contributing to the betterment of the world.

In governance and ethics, Super Group upholds the highest standards to ensure transparency and accountability throughout the organization. The governance framework is designed to safeguard stakeholder interests and maintain trust in the brand. With a core strategy centered on global expansion, Super Group is present in over 20 jurisdictions across Europe, the Americas, and Africa. This expansion not only drives business growth but also allows the company to reach diverse audiences with its entertainment offerings. Additionally, the dedicated Risk Committee, alongside other governance bodies, plays a vital role in identifying and managing risks, enhancing the ability to make informed decisions for sustainable, long-term success.

Environmental Impact

In this section, we delve into the company’s efforts towards environmental sustainability and its initiatives to reduce its carbon footprint. For a detailed overview of Super Group’s environmental strategies, you can also visit ESG Environment page.

Environmental Performance

Emissions:

Super Group recognizes the importance of addressing its environmental impact, particularly in reducing emissions. While specific emission reduction targets are not publicly disclosed, the company is committed to minimizing its carbon footprint as it expands globally.

Social Performance

In this section, we explore the company’s initiatives related to social responsibility, employee engagement, and community involvement. For a comprehensive view of Super Group’s social endeavors, you can also visit ESG Social page.

Internal

Employee feedback: Employee feedback on Glassdoor offers insights into Super Group’s(Betway) internal social performance. With a Glassdoor rating of 3.2, there are mixed sentiments among employees, with 45% indicating they would recommend Super Group to a friend. CEO Anthony Werkman has a CEO approval rating of 46%, showcasing varying opinions on leadership within the organization. Employees value aspects such as healthcare benefits and pension programs, highlighting the company’s commitment to employee well-being.

Gender Diversity: Betway boasts a diverse workforce with representation from 85 nationalities, maintaining a 70:30 male to female ratio. A gender pay gap report for subsidiary Win Technologies (UK) Ltd is available, demonstrating transparency in its employment practices.

External:

Responsible Gambling Measures: Super Group is affiliated with organizations like Gamstop and IBIA, actively contributing to gambling awareness initiatives. These affiliations underline the company’s commitment to responsible gambling practices.

Community Engagement: The WayForward program, initiated by Super Group, has donated over $2 million to various charity programs as of 2021. This program supports disadvantaged communities through both financial contributions and volunteer activities.

Responsible Marketing: Super Group ensures responsible marketing practices, collaborating with organizations such as Code Your Future and Guernsey Sports Association for the Disabled. These partnerships focus on promoting responsible gaming and supporting charitable causes.

Modern Slavery:

Commitment Against Modern Slavery: Super Group is committed to combatting modern slavery, with established policies in place. While specific details of these policies are not publicly disclosed, the company maintains a stance against modern slavery within its operations and supply chain.

Governance

For any organization, governance forms the backbone of its operations, shaping its transparency, integrity, and regulatory compliance. It encompasses the structures and processes through which companies are directed and controlled. To delve deeper into the governance practices within the iGaming industry, visit Better World Casinos – ESG and Governance.

Governmental Performance

Code of Conduct:

Super Group maintains a comprehensive Code of Conduct outlining ethical standards and behavior expected from employees. This code serves as a guide for all staff members to ensure compliance and integrity in their roles.

Frameworks & Policies:

The company has established robust frameworks and policies to govern its operations. These frameworks cover various aspects such as risk management, compliance, and corporate governance, ensuring transparency and accountability.

Anti-Corruption Measures:

As part of its commitment to ethical business practices, Super Group has implemented anti-corruption measures. These measures aim to prevent bribery and corruption in all aspects of its operations and relationships with partners.

Sustainability Charter:

While Super Group emphasizes its commitment to sustainability, specific details of a sustainability charter are not publicly disclosed. The company may be in the process of developing or formalizing its sustainability goals and initiatives.

Tax Policies:

Super Group adheres to tax regulations in the jurisdictions where it operates, contributing to the local economies. However, detailed information on its tax policies and practices is not publicly available.

CEO Compensation:

Details regarding CEO compensation are not disclosed in the provided information. CEO compensation typically includes a mix of salary, bonuses, and other incentives tied to the company’s performance.

Corporate Structure:

The governance framework of Super Group includes a Board of Directors overseeing strategic decisions and corporate governance. Three key committees support the board: Nominating and Corporate Governance Committee, Audit Committee, and Compensation Committee.

Financials:

Global Exit Strategy: Betway made the strategic decision to exit the Indian market due to increased service taxes, impacting its operations in the region. The full impact of this exit is yet to be realized and may affect the company’s financial performance in the short term. The decision aligns with Super Group’s focus on sustainable growth and profitability in viable markets.

Sanctions, Controversies, and Concerns

Betway’s Regulatory Challenges:

Awards and Ratings

Betway Awards:

In recognition of its excellence in the esports sector, Betway received prestigious awards in 2022:

  • SBC Awards 2022: Betway was honored with the title of Esports Operator of the Year, highlighting its dedication and success in the esports betting market.
  • EGR Awards 2022: Once again, Betway was recognized as the Esports Operator of the Year at the EGR Awards, solidifying its position as a leader in the esports betting industry.
  • Global Regulatory Awards 2022: Betway was shortlisted for the Outstanding Contribution to Sports Betting Integrity, showcasing its commitment to maintaining integrity and fairness in sports betting operations.

UN Sustainable Development Goals (SDGs)

Super Group actively contributes to several United Nations Sustainable Development Goals (SDGs), aligning its operations with key global sustainability objectives:

  1. Goal 3 (Good Health and Well-being):
    • Super Group prioritizes responsible gambling measures, promoting the health and well-being of its customers.
    • Health care benefits provided to employees contribute to the goal of ensuring good health and well-being within the workforce.
  2. Goal 4 (Quality Education):
    • With a diverse workforce representing 85 nationalities, Super Group fosters a multicultural environment that supports the goal of quality education.
    • The company’s commitment to diversity and inclusion enhances learning opportunities and cross-cultural understanding among employees.
  3. Goal 5 (Gender Equality):
    • Super Group’s workforce ratio of 70:30 male to female actively promotes gender equality within the organization.
    • Initiatives aimed at gender diversity and inclusion contribute to the advancement of Goal 5.
  4. Goal 8 (Decent Work and Economic Growth):
    • Super Group’s provision of health care benefits and pension programs enhances the quality of work life for employees, aligning with Goal 8.
    • These initiatives support decent work and economic growth by ensuring employee well-being and financial security.
  5. Goal 10 (Reduced Inequality):
    • Through its commitment to diversity and inclusion, Super Group works towards reducing inequality within its workforce.
    • Providing equal opportunities for employees of diverse backgrounds helps in achieving Goal 10.
  6. Goal 12 (Responsible Consumption and Production):
    • While not explicitly mentioned, Super Group’s responsible gambling practices contribute to responsible consumption and production.
    • By promoting responsible gaming, the company encourages sustainable consumption patterns among its customers.
  7. Goal 13 (Climate Action):
    • Super Group’s commitment to addressing climate change risks indicates alignment with Goal 13.
    • While specific details are not provided, efforts to mitigate environmental impacts contribute to climate action.
  8. Goal 17 (Partnerships for the Goals):
    • Super Group’s collaborations with charitable organizations and partnerships with industry groups demonstrate its commitment to Goal 17.
    • By working together with stakeholders, Super Group aims to achieve sustainable development goals and create a positive impact in its communities.

Conclusion

Overall Summary and Verdict

Super Group, a prominent player in the iGaming industry, demonstrates a strong commitment to global expansion and diverse offerings. Despite encountering regulatory challenges, the company remains resilient and adaptable, implementing measures to enhance social responsibility and address past shortcomings. Super Group’s focus on sustainable business practices and contributions to various social initiatives reflect its dedication to broader societal well-being.

Answering Initial Questions

  1. Transparency: Super Group scores a 3 for transparency, providing insights through financial reporting, but lacking comprehensive ESG disclosures.
  2. ESG Strategy: The company earns a score of 2 for its vague ESG strategy, with opportunities for improvement in defining clear targets and initiatives aligned with global sustainability goals.
  3. Sanctions and Concerns: Super Group’s score is 3, indicating no sanctions in the last year, but potential challenges in responsible gambling practices.
  4. 3rd Party Review: With a score of 3, Super Group maintains a positive public perception, though further enhancements could be pursued to bolster its industry standing.

Verdict & Scorecard

Final Score: 3 (Acceptable – we think you deserve better!)

Strengths:

  • Transparency: Provides insights through financial reporting.
  • Sanctions: No sanctions in the last year.
  • Public Perception: Maintains a positive public perception.

Areas for Improvement:

  • ESG Strategy: Define clear targets and initiatives aligned with global sustainability goals.
  • Transparency Enhancement: Enhance transparency further through comprehensive ESG disclosures.
  • Responsible Gambling Practices: Continued focus on responsible gambling practices to avoid potential challenges and regulatory fines.

Note: This scorecard is based on the BWC rating system, providing an assessment of Super Group’s sustainability performance across transparency, ESG strategy, sanctions, controversies, and public ratings. It offers a snapshot view for stakeholders and investors, highlighting the company’s strengths and areas for improvement.

Disclaimer data: This analysis is based on publicly available information, and future reviews will delve deeper into ESG reporting and potential improvements through interviews with company representatives.

Source Material: Refer to the provided hyperlinks for detailed sources.

Super Group – This page is a review of Super Group, a holding company for Betway and Spin.

 

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