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South African pay TV operator Multichoice has paid R1.3 billion ($81 million), and may still make more payments of R500 million, to acquire a 20% stake in the Nigerian sports bet company BetKing.

In a brief interim statement, it stated that the first payments were an upfront investment with Multichoice valuing BetKing at a minimum of R6.5billion ($31 million). The additional payment was dependent on earn-out targets which is undisclosed and lasting till the end of 2023.

BetKing which has been described by Multichoice as Pan-African and has, however, only had significant betting operations in Nigeria and Ethiopia. As of June 2020, they began operations in Kenya and bagged a sponsorship deal in the soccer league.

Multichoice stated that the deal is intent on pushing forward the revenue prospects by introducing new products and services that will create more growth opportunities.

However, Multichoice has no intention of making continuous payments to hold rights on European soccer. The partnership with BetKing is expected to push more prominent African players into the gambling industry.