Kenya was one of the first countries in Africa to legalize gambling in all its forms. This happened in 1966. The government and state agencies drafted the Betting Lotteries and Gaming Act, a legislative document for the new industry. Subsequently, a regulatory body was established to oversee licensed forms of gambling—the Betting Control and Licensing Board. In 1966, investment began flowing into Kenya for the construction of casinos.
What’s interesting is that gambling was legalized 50 years ago, but it only began to develop with the advent of mobile internet, gadgets, and online betting on the continent. African gambling experts claim that the impressive betting market has been the driver of Kenya’s gaming industry growth. This is not surprising, given the locals’ overwhelming love of football.
Key gambling markets in Kenya
As of 2019, there are 30 licensed casinos in the country. Large gambling centers are located in Kenya’s main cities. The most famous casinos in Nairobi are Mayfair Casino, Casino Flamingo, and Captain’s Club. Other casinos in Mombasa include Senator Casino and Golden Key Casino. Popular gambling activities among Kenyans and tourists include roulette, poker, and blackjack. The casinos also have slot machine rooms. There are approximately 1,300 slot machines and approximately 200 gaming tables in the country.
However, casinos in Kenya are far from the popularity of sports betting. Thirty licensed bookmakers accept bets in the country. The average annual revenue of these companies is $3 billion. SportPesa, a long-timer in the Kenyan betting market, has been licensed since 2013.
According to GeoPoll statistics for 2018-19, the most popular sportsbooks in Kenya were:
- SportPesa – 85% of Kenyans have opened an account with this company;
- Betting – 40%;
- Elitebet – 22%;
- Betika – 12%;
- Betpawa – 10%.
SportPesa, Betboss, Lotto, and Tatua were recognized as successful and valuable companies in betting advertising. They are among the top four in the Kenyan gambling market.
If we take a closer look at the services of the leading market operators, the rating results are beyond reproach.
SportPesaOffers players detailed statistics, live broadcasts of sporting events, and a wide selection of betting lines.
Betting– live broadcasts, a wide selection of sporting events, as well as interesting betting guides for every type of bet.
Elitebet– does not cover all sports, but accepts bets exclusively on football. However, it offers players accumulative bonusesbonusesand the convenient M-Pesa payment system.
Betika и Betpawato a large selection of sporting events and betting lines are played outimpressive jackpotsBetpawa has an additional advantage: live betting.
Kenya’s Sports Betting Boom
Sports betting in Africa has been experiencing a real boom since 2015. Tanzania, Nigeria, South Africa, and Kenya have seen a significant influx of players to bookmakers and, accordingly, a rise in betting operators’ profits. The reasons for this have already been discussed: the love of Africans, and Kenyans in particular, for football, especially the English and Spanish leagues.
Another driver of betting growth is mobile internet and the use of gadgets for sports betting. Kenya has a mobile payment system, M-Pesa, which supports mobile transactions. Experts estimate that mobile betting is steadily approaching 100%.
The Kenyan gambling market’s revenue is second only to South Africa and Nigeria. A PwC report documented growth in GGR from 2014 to 2019, from $20 million to $30 million. Experts forecast betting turnover of $50 million for 2020.
New gambling trends such as esports and virtual sports have yet to spark enthusiasm among Kenyans. Profitability in this sector is low, even after the establishment of the Kenya Esports Federation.
The Kenyan player is…?
The typical Kenyan bettor is 22 to 34 years old. They have a low income and often place bets on their mobile phones. Their favorite sport is football. According to GeoPoll, football accounts for 85% of all daily bets in the country.
Young players make up the majority of Kenyan players, accounting for 58%. Of these, 70% are men and 45% are women. They most often place bets using smartphones, accounting for 88% of all bets. Fifty-eight percent of Kenyan players place bets at least once a week.
The majority of avid gamblers in Kenya are poor – 54% of the country’s population. For the gambling market, this means only one thing: a predominance of low-cost bets. Despite this, operators generate stable profits. The average Kenyan spends $50 per week on betting. The industry annually brings in $28-35 million in taxes to the country’s treasury, third only to South Africa and Nigeria.
Tax woes in Kenya
In the summer of 2019, Kenyan operators clashed with the government over taxes. Government agencies accused bookmakers of refusing to pay the treasury fees under the new “tariffs.” As a reminder, the Kenyan parliament passed a law levying taxes on bets and player winnings. Thus, operators were required to pay the average gambling turnover.
Previously, bookmakers only paid tax on winning bets. This angered the government, and in July 2019, they abruptly revised 27 licenses for bookmakers operating in the country. Those operators that agreed to the new tax regime remained in the market. Others were expelled from the country.
M-Pesa mobile betting transactions were also hit hard. Safari.com was banned from accepting bets through this system, leading to a 35% drop in M-Pesa revenue.
The Kenyan government’s new policy hasn’t found favor with many betting operators. The largestAfrican bookmaker SportPesa has suspended operations.in the country, citing a predatory 20% sales tax. In October, about 500 bookmaker employees were laid off due to the termination of the bookmaker’s license in the Kenyan market. Another leading bookmaker, Betin, also left Kenya.
Some Kenyan operators remained in the case but filed a class action lawsuit in the country’s Appeals Tribunal. The gist of the claim is that the 20% tax should be applied to players’ winnings and deducted only from them, not from the operators.
Following the lawsuit, two of Africa’s largest bookmakers, Betin and SportPesa, said they were prepared to continue operating in Kenya if the lawsuit was upheld.
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