The GDP in the country mostly relies on agriculture and tourism. The betting industry has been crucial in its growth. There has been a rise in the employment rates, particularly with the availability of online gambling platforms.
According to a study by Geopoll, 57 per cent of Kenyans above the age of 18 have been involved in gambling. The statistic further reveals up to 44 per cent of females and 69 per cent of males. Of those who participate in gambling, 47% does it lightly that is they stake a single time in a month. Besides, those who place more than one bet in a day are 10%. The most popular betting sites in Kenya: Betika, Betlion, Odebets, 22Bet Kenya.
Betting is popular among males with the ages of 25 to 34. When it comes to females, very few are likely to involve themselves in gambling, especially after they are 35 years. The statistic indicates that gambling is popular amongst the Kenyans population.
For most households in this country, gambling happens to be an everyday activity. At the moment, Kenya is number three in Africa with regards to its traffic in both land-based and online betting. Moreover, there are strong indications that it might rank even higher in the next few years.
Unfortunately, it has come with adverse problems such as gambling addiction. After the revelation of the statistics on the betting industry in Kenya, regulations and restrictions have become crucial. The industry has a robust impact on the country with its yearly revenue of more than three million dollars.
Overview of online gambling in Kenya
Mobile phones have a crucial role in online gambling. Furthermore, the massive growth in the industry is attributable to the use of handheld devices. Additionally, out of 64 per cent of the population that possesses a smartphone, 40 per cent have used them in gambling. Mobile devices happen to be the most frequently used devices. Punters find it so comfortable to place bets while on their couch.
The popularity of casinos is low with less than 40 per cent of bettors claiming that they have ever placed a stake in these betting rooms. Those who happen to bet at casinos does it only once or less in a month. Some use betting shops and cyber centres. But its less frequent than the use of smartphones. The population that uses these places is less than 35 per cent each.
Popular sports in Kenya
Soccer is a popular sport in the streets of gamblers in Kenya. Over 83 per cent of Kenyans bet on soccer matches. Take, for example, 77 per cent of gamblers claimed that they placed their stakes during the previous World Cup. Lotteries follow closely as the most popular form of gambling. However, it is common amongst the older age group. Besides, more females participate in lotteries than males.
Legal Gambling Regulation in Kenya
Betting has been a form of entertainment for several years in this country. However, it is only sometimes later that related regulations came into force to allow the establishment of various land-based betting centers. Betting, Lotteries and Gaming Act came into force in 1966. Through it, gambling became a developing industry in the country.
Today, Kenya has about eleven bingo rooms, several sportsbooks and one racetrack in its web of the gambling scene. All those provide several betting activities. Moreover, there are more than 20 land-based casino operators who have a wide selection of table games, video gaming machines and the latest slots. The developments have been possible through the Betting Control and Licensing Board which is in charge of regulations and issuance of licenses.
Betting Control and Licensing Board
In the past, gambling in Kenya operated under the regulations of the Interior Affairs Ministry. Today, all issues are under the Betting Control and Licensing Board. The authoritative body is in charge of the gambling atmosphere in the country. It issues licenses to gambling operators once they meet the requirements.
The board has particular fundamental functions that provide with a comprehensive account of its daily operations. Other than the issuance of licenses, management and annulling operators, the organization also offer competitions and regulates award system.
It is crucial in keeping up with trends, forces and changes in the market wherein return it gives an appropriate response via new policies.
Challenges facing online gambling in Kenya
The gambling industry in Kenya has several challenges. That is especially after the government officials noticed its huge potential. There has been an increase in taxation from 20 per cent to 35 per cent. It is relatively moderate compared to the proposed 50 per cent. However, it has become a big challenge for many online operators. It is difficult to raise such an amount considering that they also have the obligations to pay 35 per cent corporate tax and also contribute 20% of their total revenue to a worthy initiative. Besides, it has had an impact on the players. They can notice a change in their winnings. Operators are supposed to hold back 20 per cent of the bettor’s winning. But so far, only lotteries have adhered to that regulation.
The authorities have been keen on suspending licenses in case the gambling operators fail to comply with the requirements.
Sometimes back, the BCLB delayed the renewal of the operational licenses for six lotteries, thirteen casinos and eight sports betting companies. Besides, it also failed to renew those of 19 gambling operators citing imminent scrutiny of their safety of operations in addition to ownership.
Besides, the unveiling of the 2019 Gaming Bill saw an increase in the regulatory charges, minimum stake limits and local possession requirements. Besides, the government had earlier states that it would suspend the licenses for any gambling operator with outstanding tax obligations.
Conclusion
The Betting Control and Licensing Board (https://bclb.go.ke) maintain transparency in the Kenyan gambling industry. It is an excellent move that reduces the risk of corruption and illicit gambling services. For any lottery, casino or sports betting, a license from the BCLB is crucial. The biggest threat to this industry is the heavy tax proposal from the Kenyan government.
