An overview of the Kenyan gambling market
Kenya boasts around 55 million citizens and one of the continent's most robust economies. It's also home to one of the biggest gambling markets on the continent, with massive numbers of avid sports enthusiasts wagering massive amounts through Kenyan-based bookmakers.
This article provides an overview of online gambling in the Kenyan market and overview of gambling sites in Kenya, so if you’re looking for practical advice on how to enter the rapidly expanding casino and online betting market in Kenya, you’ve come to the right place.
Kenyan gambling market: types of gambling
The gambling market in Kenya is enormous, projected to reach a value of nearly $831 million.
Third-largest Sub-Saharan market, after South Africa and Nigeria, Kenya is also the region's leader in the proportion of young gamblers — younger Kenyans spend much more on games of chance than do younger people in other nations in Africa.
Availability of technology is a second characteristic that distinguishes Kenya.
Kenya has one of the highest rates of internet penetration in an African country – 40.8% — and is estimated to have 64.94%. The majority of citizens within the country access the internet from mobile phones; it is estimated that there are 122 mobile subscriptions per 100 inhabitants, as provided by the World Bank.
This rapid digitalization has driven rampant growth of the internet-based betting market. This is not convenience, but a requirement for a large number of residents in rural Kenya who have no access to land-based betting houses and casinos.
Betting in Kenya
Betting on sports is the one major sector that is driving the Kenyan gaming market.
Kenyan punters have increasingly acquired a strong craving for online sports betting on many grounds. Foremost among these is the comfort and convenience of online sites that have enabled players from the confines of their homes or even on the move. A GeoPoll survey conducted recently has it that 37% of the respondents placed their sporting bets weekly, 28.5% monthly, 18% daily, while 15.8% bet several times a day.
This has particularly been attractive to a younger market, who are more technology-savvy on the whole and prefer the convenience of online betting. Further, the large number of sports and markets for betting has drawn customers who appreciate the variety and excitement of placing wagers on a variety of events.
Certainly with no doubt, football is Kenyan punter's most popular bet. There are most favorite championships by betting volumes in the nation:
- The English Premier League
- UEFA Champions League
- Spanish La Liga
- Kenyan Premier League
The first, and one of the best, of Kenya's betting sites was SportPesa, which obtained an operating license. It remains the nation's popular betting site, with 82% of Kenyan punters holding an account there. Some other brands have noticed SportPesa's success and copied it; the number of licensed bookmaking businesses in Kenya has increased to as many as 128.
Gambling in Kenya
Success of the casino business is almost the limit of popularity of gambling. Conventional casinos, located primarily in big cities, are always packed.
In recent years, large casino operators have gone online and ushered in a vast array of opportunities.
Apart from the above mentioned, there are some more forms of Kenya online gambling games:
- Blackjack casinos
- Roulette
- Online poker
- Slots
Kenyan live dealer casinos also provide the real thrill of live play and are in demand among Kenyan gamblers.
The legalities of the Kenyan law
Is there gambling legalized in Kenya? Gambling per se is legally permitted in Kenya. However, the Kenyan gambling laws and betting rules are far from simple.
The most important regulatory document on Kenyan gambling laws is Betting, Lotteries, and Gaming Act which has since been amended, specifically to adapt it to suit a growing market as well as technological advancements.
The most prominent recent trend is the tabling of the Kenya Gambling Control Bill, which aims to revolutionize the gaming sector. The bill has been passed by the National Assembly of Kenya after rejecting a number of amendments brought by the Senate. The bill aims to regulate the gambling and betting industry, tax gambling, and protect citizens from exploitative behavior.
The taxation of gaming games in Kenya
The Kenya Gambling Control Bill imposes a 15% tax on all gaming revenue, payable to the Kenya Revenue Authority (KRA) by the 20th day of each month. The Senate proposed an additional 15% on bet, lottery, and competition prize, but it was rejected by the National Assembly. At least 30% of proceeds from each lottery must also be contributed to the stipulated charitable cause.
The cost of a gambling license in Kenya varies depending on the gaming activity and whether the applicant is a local or foreigner. The ultimate costs will vary depending on the actual operations you would like to conduct.
Conclusion
The Kenyan iGaming market is an exciting and prospective business for companies and entrepreneurs with an interest in the African gaming market.
Increased internet access and widespread use of mobile phones create a perfect market for online betting websites. With an open-minded youth interested in online gambling and betting, there is room for rapid expansion and growth in this segment.
Entering a new market is easier said than done. If you require expert assistance or wish to customize your business plan to fit Kenya to the word, contact us for a consultation free of charge. Our iGaming and legal professionals stand by, ready to assist you.