Operators in Africa have been left behind by legacy providers with outdated platforms according to EveryMatrix’s Head of Sales for Africa, Mark Schmidt.

Appearing on the latest episode of iGaming Daily, Schmidt detailed the need to end the “overpromise and underdeliver” culture that is holding the continent back.

“If you speak to an operator in Nigeria, Kenya or South Africa over the years, they would have had the same feedback that they were promised the world but basically got a tenth of what they were actually expecting,” Schmidt told Charlie Horner, SBC’s Media Manager.

Focusing on his native South Africa, he explained that Hollywoodbets and Betway enjoy the lion’s share of the market powered by their own proprietary technology, however, competitors are forced to choose between a legacy technology provider or new entrants to the region.

Schmidt said: “There was a legacy provider that had [over] 90% of the market but they’re very slow to roll out features. They’re very good from a horse racing perspective but pretty weak across every other vertical within the operation. 

“Being pretty much fed up with what they were being given, which was not much, [operators] took the opportunity to speak to these new providers coming into the market but then they soon found out that those providers couldn’t really do what they had promised either.”

This has hamstrung a market that was worth over €2bn in GGR during the last financial year and left executives with “never-ending frustrations” as they “try to win a Formula One race with a bicycle”.

Reflecting on why new entrants to the market have repeatedly failed, Schmidt spoke about the need for them to get to grips with the stringent regulations that govern the country’s gambling sector. 

“The crucial part to consider is the red tape from a regulatory point of view that’s in place. It’s an all-in approach and everything is covered,” Schmidt added.

“A lot of it comes down to how stringent it is and how much it takes to actually get done. Companies, when they see the costs associated with it, they will pull out. But I don’t think it’s been taken seriously and I don’t think it’s been done well. 

“That comes down to purely not offering the right product, the right customer support and understanding the requirements of the South African players. It is an incredibly competitive market and if you have a sales team that’s based on the other side of the world that’s trying to understand how you work from a day-to-day perspective, the chances of that relationship being successful are pretty much slim to none.”

In response to this dearth of technology, EveryMatrix has expanded its presence in Africa, establishing a base in Tanzania and a soon-to-open office in Durban, South Africa. 

Additionally, a number of brands previously using FSB Technology’s platform will migrate to EveryMatrix following its acquisition of FSB mid-way through 2024.

Among the most popular sports in South Africa is horse racing and Schmidt detailed how EveryMatrix is leveraging the expertise of FSB to launch its own horse racing solution, while still focusing on localised aspects to meet the needs of the South African market. 

He concluded: “You’re not getting a horse racing product where it’s a European product or UK product with all the UK terms, it’s customised to the way that horse racing is seen [in South Africa].”