Home to around 45 million people, Kenya is one of the
largest economies in Africa. The equatorial nation is located on the coastline
of the Indian Ocean in East Africa and enjoys steady growth across various
industries and sectors. The country’s capital city of Nairobi is one of the
biggest commercial hubs in Africa while various agricultural exports such as
coffee and tea, together with tourism and a booming financial sector, are great
pillars in Kenya’s robust economy. Kenya may not be a wealthy nation by global
standards, but compared to neighboring countries it has a higher standard of
living. The country also boasts of a huge sports-loving population, with
football, athletics, volleyball, rugby and cricket as some of the most popular
sports.
The Rise of Sports Betting in Kenya
Sports betting market is growing at a tremendous pace in
Kenya. While gambling has been legal in Kenya since the enactment of the
Betting, Lotteries and Gaming Act of 1966, it remained a craving for the elite
and international visitors to Kenya for many decades. Today, however, the
landscape has changed immensely with gambling taking over the population at an
incredible pace. In fact, according to recent studies, people of all social
classes are showing a strong interest in betting, lotteries and gaming, opening
up a bigger market for gambling companies. Recent estimates indicate that the
bookmaking industry alone enjoys a gross annual turnover of more than $20
million, which is expected to rise to $50 million by 2020. And with the country
having one of the most liberal regulatory environments, Kenya is likely to
remain one of the most vibrant gambling markets in Africa for many years.
Betting Companies in Kenya
Gamblers in Kenya have no trouble finding a betting
provider. The country has several high-street and online gambling providers
offering a huge variety of markets for gamblers. For sports lovers, there are
many online and offline bookmakers to choose from and it is upon the player to
make a choice from the many. Currently, there are more than 30 bookmakers
licensed to operate in Kenya, some running casinos in the country’s towns while
others have online websites offering 24-hour services. To growth of online
sports betting took a huge spike in 2013 when Sportpesa was licensed to offer
online betting services. The pioneering work of Sportpesa opened the market for
other players and soon the Betting Control and Licensing Board allowed more
than 10 companies to provide legal online betting services in Kenya. Such
companies include Betway, Betin, Betpawa, Bet Yetu, M-Cheza, among others.
Payment Options
Methods of depositing money into betting accounts vary
depending on the operator. Nevertheless, mobile money has become the most
dominant method and is accepted by almost all the major betting companies licensed
to operate in Kenya. The mobile money methods include M-Pesa, Airtel Money and
Orange Money, among others. Using mobile money is common because it is fast,
convenient and secure. Players can easily transfer money from their Safaricom,
Orange or Airtel accounts into their sportsbook accounts and vice versa. Mobile
money accounts are also used for making withdrawals after any winnings. Apart
from mobile money, players can use other methods such as e-wallets (Paypal,
Skrill etc), Visa, MasterCard, and bank transfer options to deposit or withdraw
money from their betting accounts, particularly when dealing with foreign
bookmakers.
Gambling Laws and Taxation in Kenya
The gambling industry in Kenya falls under the authority of
the Betting, Lotteries and Gaming Act, which was passed in 1966. The Act
established the Betting Control and Licensing Board (BCLB) which has the power
to oversee and regulate all kinds of gambling in the country. Under this Act,
most gambling (whether lotteries, poker, bingo, sports betting) is legal so
long as the operator is licensed by the BCLB. Even though online betting was
not part of the 1966 Act, the emergence of online betting have led to legal
adjustments for regulation. In Kenya, online bookmaking sites have been
licensed and regulated since 2013.
The most important aspect of these laws is restriction of
people who can engage in gaming. All providers are obligated to ensure no
minors (persons under 18 years) engage in betting. Children are also no allowed
to work or seek employment in gambling establishments. Minors should also not
be exposed to adverts of gambling services. Any gambling company that violates
these and other provisions of the Act face various penalties imposed by the
BCLB.
In terms of taxation, the gambling industry in Kenya has
faced very little since 1966. But the Financial Act of 2013 put in place a 20%
withholding tax on all gambling winnings for players, whether such winnings are
paid in cash or in terms of prizes. The government also moved in to solidify taxation
rules in the late 2016. According to these rules, casinos and gambling
companies owe 12% of their turnover in taxes, while all betting companies must
pay 7.5% and lottery operators to pay 5%.
The Future of Gambling in Kenya
Currently, there are several sports markets that Kenyans can
bet on. The most popular one is football whose markets are offered by almost
all bookmakers in Kenya. The betting companies offer local football games such
as the Kenya Premier League (currently Sportpesa Premier League) and
international football leagues such as the English Premier League, the German
Bundesliga, Spanish La Liga, and many other football leagues. Apart from
football, the sites offer basketball, tennis, rugby, volleyball, cricket,
handball, baseball and many others.
But gambling in Kenya is also seeing unprecedented growth in
land-based (high-street) shops. Presently, there are several gambling casinos
throughout Kenya, particularly in the major towns, with more than a dozen
registered under the Association of Gaming Operators Kenya, a group that
represents and lobbies on behalf of casinos. Nairobi alone has more than 10
major casinos, including Millionaires Casino, Palms Regency and Regency Slots;
while Mombasa has more than 3 top casinos, with the rest found in Malindi,
Watamu, Thika, Nakuru, Kisumu, Eldoret and Kisii.
In 2017, during the reading of the National Budget, a 50%
tax was proposed on sports betting companies. This has caused a huge uproar
though not affected the growth of the industry. It is still a wait-and-see
whether or not the proposal will be implemented. But even with such tax
proposal, the liberal environment in Kenya is set to promote the growth of the
industry.