The sports betting market in Kenya is booming, especially for football fans, as football continues to be at the core of the sports culture in the country. However, the sports betting market has faced new regulations since the government pushed the Gambling Control Bill 2023. This legislation can reshape the betting industry, as it would establish a dedicated Gambling Regulatory Authority. With this, the implementation of stricter rules for both operators and bettors would come about. The motivation for pushing for this bill has been related to concerns over social welfare and the economic impact which unregulated betting can have.
The rapid rise of football betting in Kenya
The high viewership of local leagues and international football events, football betting constitutes a big part of the sporting culture in Kenya. Football events like the English Premier League and the UEFA Champions League are some of the most sought out events for football fans in Kenya to watch and place bets on. According to a poll by TGM Research from 2022, around 63% of the population in Kenya has been involved in sports betting activities, with football being one of the most popular sports. This number reflects the stronghold sports betting culture in Kenya.
There are many major operators who have entered the sports betting market in Kenya. One platform which allows football fans and sports fans in general to place bets is Bombastic betting. With Bombastic betting, sports fans can find a great selection of sports to play on. For football, Bombastic betting offers odds for leagues all around the world, from England to Spain, and the U.S. Many betting operators are also offering sports betting through apps, making betting more accessible from mobile platforms.
The key features and objectives of the Gambling Control Bill 2023
The Gambling Control Bill 2023, which was passed by the National Assembly with amendments in December 2023 and which is currently under parliamentary discussion, introduces a new Gambling Regulatory Authority, which would be replacing the Betting, Control and Licensing Board (BCLB). The Gambling Regulatory Authority would oversee licensing, compliance, and monitoring of betting activities, with the main objective to curb illegal gambling and regulate licensed operators. Another key element of the bill is the enhanced focus on protecting vulnerable populations.
One of the provisions of the bill includes a minimum stake requirement of KES 20, which is mandatory, and anyone violating this could face a fine up to KES 5 million. The bill also adds tax revisions, with a 15% tax on gross gambling revenue, coupled with local county levy which will depend on the location of operations. Advertising for online gambling will also be banned during certain hours. Gambling ads cannot be visible on TV and radio between 6 a.m. and 10 p.m., with the objective to reduce exposure to younger audiences.
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Social and economic implications of new regulations
The betting sector in Kenya has been growing rapidly since the early 2010s and has since been increasingly contributing to the revenue of governments. However, at the same time, it has been raising concerns regarding addiction and financial strain. The youth in Kenya has one of the highest youth participations in gambling among African countries. According to a survey from 2021 by Statista, over 80% of respondents (young Kenyans) declared they had already gambled or betted. This trend can have negative financial repercussions if young people do not manage their funds well, and it can result in gambling-related stress and addiction.
This is where the bill comes in, as it will try to address these concerns. By protecting Kenyan youth from the harmful effects of unregulated betting, as it will provide the right tools for money management, volunteering exclusion from gambling, and less direct exposure to ads.
Impact on football and local economies
Football clubs in Kenya’s local leagues have enjoyed both sponsorships and partnerships with betting companies, which has provided crucial financial support. However, some football clubs had shown concern whether betting companies would reduce sponsorships due to stricter regulations and taxes. The 15% tax on gambling firms’ revenue is a significant increase.
It is still unsure whether this will materialize or not. Leading betting firms have previously withdrawn from the market in protest high taxes, however re-entered the market after negotiations. It could be expected that similar actions could occur if the bill is introduced by parliament.
International comparisons and local perspectives
The proposed regulatory model in Kenya draws from approaches from countries like United Kingdom and South Africa, where a regulatory authority monitors betting activities closely, with set tax standards and measures to prevent problem gambling. However, some concern by industry experts have pointed out that the bill could inadvertently drive bettors to unregulated platforms, due to the excessive taxation increase of the bill.
As various industry experts have pointed out, it is about striking a balance between regulation and avoiding having situations where high taxes push the betting market underground. However, some positive views see that for example the minimum stake requirement could discourage impulsive bets.
Concluding remarks
As Kenya is still holding its breath to see whether the passing of the bill by parliament will happen, there are some great potentials and challenges embedded in the proposed bill. If it gets passed, football betting in Kenya will change, with rules protecting vulnerable bettors, while simultaneously ensuring the industry is contributing responsibly to Kenya’s economy.
