Sports Betting Industry in Kenya: An Overview

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.

Sports Betting Addition: How to Overcome Gambling Addiction

Betting has many more risks than just the risk of losing money. You will spend a lot of time shopping for the best prices, analyzing various teams and building the best accumulators. But the most important risk is that of addiction. Betting is quite addictive once you get going. You will constantly find yourself chasing money, competing against bookmakers and trying to get an edge over them, waiting until the last minute of every match to see if you bet wins, and looking to try another bet should you win. There is a thrill and a rush involved, but you may also get desperate when in a losing streak and trying to get yourself out of financial problems.

High risk of addiction

The risk of addiction is quite high in sports betting. While it is a legal pastime that is easy to access and which you are more likely to engage in if you follow sports constantly, the massive promotions and media advertisement of various games may also influence you to bet even when you don’t want to. If you approach betting as fun, you are more likely to get addicted quickly.  Since betting is so easy and almost every person may be tempted to think he can beat the odds, it can quickly become addictive. This is why betting should be approached with care, caution and will power, so you can always have control over your betting habits.

What is betting addiction?

Betting addiction occurs when a person unquestionably believes that he/she has all the answers to betting, thinks he/she has a foolproof betting system for beating the odds, and believes he/she can rely on betting as an unwavering source of income. Addiction occurs when reality has been put aside and there is belief that betting can solve all financial problems. Addicted punters can go for a few days without betting, keep asking for money a lot of times to use for betting activities, and may even behave irrationally when they can’t have access to betting. You may be addicted whether or not you have enough money to use in betting. As long as betting has become so compulsive that you can’t go without it, you are addicted.

Studies have shown that adolescents are at greater risk of betting addiction than adults and that more than half of compulsive bettors will commit crimes in order to get money to pay for their gambling debts.

The most common signs of betting addiction are:

(a)     Unhealthy preoccupation with betting

(b)     Impatience and irritability when trying to quit betting

(c)     Lying about the extent of your betting activities

(d)     Needing to place increasingly huge wagers to enjoy the rush

(e)     Trying to recoup losses with more gambling

(f)      Seeking financial assistance from friends and family to support betting activities

Betting addicts may also become moody and irritable when they can’t get what they want. When they lose bets, they may become desperate and experience withdrawal symptoms. Most critically, betting addiction can lead to greater problems such as relationship strains, financial hardship, and putting job and home at risk. There is also a risk of turning into crime such as stealing from family and friends in order to fund betting activities.

How is betting addiction treated?

Bookmakers usually post information on betting addiction support and treatment on their sites. Check out the sites for contacts of those offering advice, counseling and treatment and how to stay in control. Also check online for available resources to help you control spending and reduce the risk of addiction. Behavioral therapy may help you to overcome the adverse effects of betting addiction such as low self-esteem, depression, anxiety and other problems. When you suspect that you are addicted, talk to someone. Speak with a friend or family member about your addiction and find a place to get confidential help.

Bookmaker Terms and Conditions: Betting Rules

While many punters rarely stop to read bookmaker terms and conditions, all bookmakers provide their betting rules avail the rules for punters to read. Often, the terms and conditions are tucked away in a small link or are accessible through the help link of a website. Terms and conditions are long lines of text and legal jargon that are rarely interesting to read. But for a bettor to be on the safe side, it is important to take a few minutes to run through the rules just to be on the right path.

For example, it is important to know the rules pertaining to account suspension. This will help you to keep off making any misdemeanors that may lead to your account being blocked or suspended. Likewise, it is important to master the rules on bonuses and offers, deposits and withdrawals, and the maximum and minimum potential win per bet. You must also remember that when registering on a betting website, you accepting the terms and conditions pertaining to the usage of the website. The bookmaker assumes you have read and understood the rules and will take the necessary action should you break the rules. So even if you sign up without reading the rules, you are going to be bound by all applicable rules that are in place on the website.

Apart from the terms and conditions, make sure to read sportsbook rules. These are the specific rules pertaining to the particular sport you are betting on. The rules cover the available markets and stipulate what happens before, during and after you place your bet. For example, sportsbook rules will state what happens to your bet if a match you bet on is abandoned or postponed. The rules will also explain match terms such as 90 minutes, injury time and the actual settlement of bets. Make sure to check even the finest details of these rules.

Another thing you need to keep an eye on is the maximum and minimum deposit amounts you can make. This is determined by your payment method and by the bookmaker’s restrictions. Some bookmakers will even allow you to set you preferred deposit limits so you can’t deposit more than you can afford to lose. There are maximum winning limits which you must also pay attention to. The maximum winning limit is the amount you can win within 24 hours. Limits vary from one bookmaker to another, but they range between Ksh 1,000,000 to Ksh 4,000,000 depending on the bookmaker.

When can your betting account get suspended or banned? Suspension or blocking or an account depends on the bookmaker rules you have infringed. Different bookmakers have various rules that must be followed by punters and you can get kicked out if you breach them. For example, a bookmaker can kick you out if a negative balance on your betting account is not paid. In fact, if you become bankrupt, your betting account may be suspended immediately. Your account may also be suspended when you cheat or when you use the betting site improperly. Dormant accounts that have been inactive for a certain period of time (often 1 year) may also be closed.

Bookmaker Payment Methods: Options for Depositing or Withdrawing Money

Bookmaker payment options differ slightly from one company to another, but wherever you register you will find pretty much the same options. There may be slight differences on things like charges, but the methods are just about the same. There will also be differences on the minimum and maximum amounts that can be deposited or withdrawn.

Mobile Money

The most common method of depositing money to betting sites in Kenya is mobile money, whether that is M-Pesa or Airtel Money, among others. Mobile money deposits are very quick and take just about a minute to go through. Besides, mobile money can be used at any time. So you have no worries of the time to deposit money to your betting account. Whatever mobile money channel you use, you will pay some charges to deposit money. For example, depositing money on Sportpesa is charged Ksh 3 for depositing less than Ksh 50, Ksh 5 for depositing Ksh 51-99, and Ksh 22 for depositing Ksh 100 or more.

E-Wallets

E-wallets are quite a popular means of depositing money to an online betting account quickly, securely and efficiently. E-wallet options include Paypal, Skrill, Neteller and IDebit, which have instant processing time and do not have bookmaker processing fees. Many bookmakers do not charge any fees on any of the above E-wallet methods. One disadvantage of E-wallets is that bookmakers do not often allow them to be used to fund bonus bets because of security and fraud options.

Credit and debit cards

Debit and credit cards are processed instantly and are a quicker method of depositing money than banks. They allow for the deposit of huge sums as the maximum amount placed on them is usually high. The disadvantage is that if you use a credit card you will be charge a high interest rate, but using a debit card may be a bit advantageous because interest rate is pretty low. Likewise, your bank may charge you a fee to deposit money in your betting account using a debit or credit card.

Prepaid vouchers

Prepaid vouchers allow you to exchange cash for vouchers that can be used safely for various online purchases. Two common examples of prepaid vouchers are Ukash and Paysafecard. Prepaid vouchers have the smallest deposit limits of all the deposit methods.

Bank options

You can fund your betting account directly from your bank. For example, you can use wire transfer or a direct bank transfer, or even a chaque to fund your betting account. The major disadvantage with bank options is that they take a very long time, from 3 days to 10 days or more, for money to hit your betting account. Bank options also have a very high maximum limit requirement which may not be met by many bettors.

Recommended options

For bettors in Kenya, mobile money transfer is the quickest, safest and most convenient way to fund your betting account. You will have the money in your account in less than 1 minute. Apart from that, you can use the debit card or the e-wallet options as they are also quick, cheap and efficient. More importantly though, make sure to keep your finances in check, only depositing what you can afford to lose in your betting account.

Sign Up/Registration at a Bookmaker: Opening a Betting Account

Once you decide to get into betting, the next step is opening a betting account. If you want to try betting with a high street betting shop, you simply need to walk into that shop and request for account opening details. But if you want to open an account with an online betting company, you will need to do some research, choose the most reputable company and then sign up (register) with the company.

Sign Up

Most online betting companies have a sign up/registration page. On such pages, the registration steps are usually straightforward and easy to follow. So once you pick your preferred bookmaker, go to the company’s registration page and then click on “Register” or “Sign Up” depending on the term used. Enter all the required details and then click “Ok” or “Register”, whichever term has been used. A link will be sent to your email account which you can follow to confirm your registration. Some sites will require you to confirm your registration using your mobile phone and a confirmation code will be sent to your phone. Respond accordingly to have your account activated.

Registration is quick and easy

At most online betting sites, registration is quite simple and quick. You will be able to complete registration in a few minutes. During the registration, you will typically be presented with a form in which you need to fill with your basic information. Complete the form out and you will be done. Once your account is set up, you can navigate into the account and set up a few necessary things, such as your payment and withdrawal options. After this, you can deposit money into the account and start betting.

Almost all betting companies in Kenya accept mobile money transfer, such as M-PESA, Airtel Money etc. But some will accept e-wallets, cards and bank deposits. Use your preferred method to deposit money in your account. Take note of the charges so you have enough money to cover your bankroll and the charges. You can also take advantage of the welcome bonuses offered by many online betting websites during sign up.

Registering with many bookmakers is advisable

Remember not to limit yourself to just a single bookmaker. If you want to have access to a wide range of sports, matches and odds then opening accounts with many different bookmakers can help. Different bookmakers also mean you can access special promotions, various bonuses, a wide range of markets and high-value odds. Most importantly, though, you should go for a bookmaker that gives you enough convenience when withdrawing and depositing money. You don’t want to wait far too long to withdraw what you have won or to struggle to deposit money in time for a match you want to bet on. Likewise, you should register with a bookmaker that guarantees the safety of your personal information. You don’t want thieves and fraudsters to have access to your personal identification details or details of your bank accounts. Go for reputation and convenience.