The Hidden Role Sponsorships Play in South African Betting Loyalty

The misconceptions often go deeper, with bettors assuming that betting companies sponsor events solely to attract clients or to boost their client base.

Sportsboom looks at the common misunderstandings linked to sponsorships, analysing the lesser-known roles these deals play in driving bettor loyalty.

Betting loyalty in a South African context

In the South African betting sector, where a majority of players use mobile platforms to place smaller, more frequent stakes, loyalty tends to be influenced by promotions more than odds on one bookmaker to the next.

A dissertation by Costen Madoro, published by the University of South Africa ^[1], suggests that user experience, trust, strong communication, and brand prominence are more important in driving client commitment.

Betting brands are placing themselves prominently in the eyes of local consumers by aligning with major leagues, teams, and events, enforcing the idea that loyalty is also driven by trust and psychological connections.

However, this concept comes with the negative trade-off of a sponsorship deal being seen as an indicator that a bookmaker is credible, which is not necessarily true in a market where licensed and illegal operators exist.

Why bettors believe sponsorships are a signal of trust

Having a bookmaker’s name heavily featured across a league, for example, means the brand becomes part of the sporting lexicon, which can drive loyalty beyond standard advertising.

Revenue from sportsbook sponsorship deals can also help fund sports teams, leagues, and events, although it has been argued that this can normalise gambling in the public’s eyes.

The argument that sponsorships prove a bookmaker is safer is also flawed, since these kinds of deals are only investments, which does not translate to outcomes that are better or safer.

Similarly, the South African betting market is highly competitive, meaning that bookmakers who sponsor sports like rugby and football do not necessarily offer better odds for consumers.

Weighing sponsorships against South African betting loyalty

To understand the role of sponsorships in terms of local betting loyalty, it is important to understand some of the common misconceptions.

Bettors often assume that deals boost brand awareness, but this is not fully accurate, as many South African bettors are aware of the major brands already.

Instead, the prominence of these brands make them easier to remember and they are often seen as more familiar.

Another assumption is that sports bettors trust brands more if they are sponsors.

While this may be true in theory, the reality is that when a bookmaker sponsors a league, they blur the lines between advertising and a stakeholder role, creating a stronger perception of trust.

Some arguments also centre on bookmakers sponsoring sports to boost betting.

In reality, although sponsorships can align with bettor emotions, such as the euphoria of a team scoring a winning goal, this does not equate to an increase in bettors.

Real-world example: Betway and brand loyalty

Using the Betway Premiership as an example, the title sponsorship of the PSL emphasises how these kinds of deals can influence loyalty beyond traditional advertisements.

When a bookmaker becomes consistently referenced in the media and during broadcasts, it creates a perception of legitimacy and increases familiarity.

Bettors may be driven to a brand they see more often, even if the odds are comparable to other bookmakers, underlining what influences loyalty for South African players.

However, it is also important to first verify that a bookmaker is licensed within the regulatory framework and oversight of the National Gambling Board ^[2].