How Online Betting Opens Doors to Some Investors in Kenya
The Kenyan online betting market has soared over the past few years, and millions of Kenyans regularly place bets on their favorite teams. It is one of the most prospective markets in the world and certainly among the top three in Africa. Kenyan authorities saw potential benefits that the online industry could bring to the state economy.
Therefore, the government regulated the online betting sector and created a legal playground for all participants in this industry. Online punting started to attract more investors, and we have investigated these trends and their impact on the local economy.
How can betting sites attract investors to Kenya
Online betting in Kenya enjoys continuous growth, and the industry brings millions of dollars in revenue to the country. It is one of the biggest gambling markets in Africa, and it opened doors to many domestic and international sports betting companies. To avoid operations in illegal or gray zones, the Kenyan state formed the Betting Control and Licensing Boards of Kenya, a regulatory body that supervises all gambling activities in the country.
Kenyans are avid punters, and international companies have seen its potential and, therefore, started their businesses in this African country.
Nowadays, you can find numerous operators available in the Kenyan online betting market. However, not all have obtained proper licenses to offer their services to Kenyan players. Luckily, you shouldn’t have much trouble finding the best betting sites in Kenya since BestBettingSites.com explore them all. This way, you can always find a safe and licensed sportsbook to place your bets on.
However, the Kenyan gambling market has faced certain setbacks lately. Due to costly and complex taxes, several big names in the online gambling industry left the market. Nevertheless, the Kenyan government has launched the Nairobi International Financial Centre (NIFC) as part of the country’s Vision 2030. This flagship initiative should provide tax incentives to attract new investors and boost the state economy.
It should also apply to online betting companies, and we can expect more big names to enter the market thanks to a more flexible tax model. Examples of South Africa and Mauritius show that this initiative should open doors to more foreign investors.
Current tax regulations in Kenya
The overall Kenyan gambling market generates a revenue of around $50 million, and sports betting is the main contributor with approximately $30 million. Naturally, the state wanted its piece of the cake from this lucrative market, and it regulated this sector. However, taxes in the Kenya online gambling market are quite high. Winnings are taxed at 20%, while more tax expenses contribute to the Kenyan tax system complexity.
Online betting Kenya needs to pay the net profit tax and the turnover tax as well. Therefore, several companies stopped their businesses there in 2019.
However, the new tax regulations should provide a more relaxed and simpler environment for investors. The Kenyan online gambling market is big, and its potential is even bigger. That is why it should continue growing, and we might see more betting sites Kenya available to local players.
Since the number of punters continuously increases, it will attract more investors to this thriving market.
The economic impact of online betting sites
Online betting is the flagship of the Kenyan gambling industry. It generates the highest part of the revenue in this sector, and thanks to the regulations, the state economy can also benefit from these trends. Since it is a multi-million dollar industry, the state income through taxes is also pretty high.
In order to get its part of the pie, the government established the Betting Control and Licensing Board, which controls the industry and issues licenses to online operators. This lucrative industry brings additional income to the Kenyan economy through taxes, and those funds can be invested in sectors that need acceleration, like infrastructure, education, or health.
Without established regulations, Kenya would miss the chance to capitalize on online sports betting activities. Illegal sportsbooks and offshore companies would be the only beneficiaries in the online betting market. On the other hand, the legal framework brought benefits to bookmakers, players, and the country.
Sportsbooks can operate in a regulated market, while bettors can enjoy placing their bets without being concerned for safety and security. Eventually, the state generates additional income to help other sectors grow.
The online betting market in Kenya
Along with South Africa and Nigeria, the Kenyan online gambling market is the most lucrative in Africa. Players like to visit the best bookmakers sites in Kenya, and online betting is the leading gambling activity among Kenyans. Thanks to a fully regulated market, Kenyan punters have the opportunity to register their online accounts on internationally-respected gambling platforms.
Bettors in Kenya can place their wagers on a wide range of markets, such as:
- Asian Handicap
- Prop Bets
Also, numerous competitions are at their disposal, like the FIFA World Cup, the Premier League, and the Champions League.
The online betting sector will likely grow in the upcoming years thanks to several factors that will catalyze its progress. The Kenyan population is very young, and estimates say that more than 50% of the population will be 25 or younger by 2050. Young generations are very interested in entertaining content, and online betting is among the leading ones.
Technical advancements come on top of that. Network infrastructure in Kenya has progressed a lot lately, and the internet is accessible more than ever. Moreover, at least 10 million Kenyans use smartphones, and it is very convenient to place bets on the go.
Therefore, online sports betting is widely accessible, and due to high unemployment rates, many people hope to win huge returns through sports betting. Making mobile transactions have become easier than ever, thanks to payment processors, such as MPesa. All these factors positively impact the online betting sector’s growth.
The Kenyan online betting industry should help the state economy by bringing more investors to the country. It has a big commercial potential for foreign companies, and their activities can get more revenue through taxes. Moreover, they should create more job opportunities for Kenyans.