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Kenyan Gambling Sphere: Start a Profitable Local Business

Updated 02.06.2023

Kenya is a state in the African Great Lakes region. The country is diverse, with 47 million individuals comprising multiple ethnic groups. The state boasts the biggest economy in East Africa and is a hub for lawful and prevalent online gambling.

Gambling in Kenya: basic info

Smart Money provides a detailed examination of Kenya's wagering environment, shedding light on its extended iGaming market. Operators may successfully enter this rapidly growing industry with our top-quality solutions.

Overview of the Local Market

The wagering sphere is of immense proportions, valued at approximately $40 million as of 2020. Within Sub-Saharan Africa, Kenya holds the 3rd position in terms of market size. The local industry stands out by having the biggest number of young gamers on the continent.

Sports betting

This niche is prevalent in the local wagering environment. Football is the most favoured activity to bet on.

There are nearly 30 legal bookmaker offices, for instance:

  • SportPesa;
  • Betin;
  • Elitebet;
  • Betika;
  • Mcheza;
  • Betpawa

Stationery casinos

Kenya's offline gambling market is well-established and highly vibrant. The country boasts a total of 30 licensed institutions such as:

  • Casino Flamingo;
  • Mayfair Casino;
  • Golden Key Casino;
  • Senator Casino in Mombasa.

Board entertainment and slots are favoured by many Kenyan punters. There are over 200 gaming tables and 1,300 machines in local casinos

Digital Gambling in Kenya

Web platforms have created a plethora of opportunities in the industry. The majority of bettors (88%) in Kenya access the Internet through smartphones.

M-Pesa, a well-known mobile money service used for digital payments, significantly impacts the growth of iGaming. The development allows deposits at retail outlets, from where the funds can be conveyed to web sportsbooks and casinos.

Most Kenyan iGaming fans are young individuals between the ages of 18 and 25. Many of them come from low-income backgrounds and so view digital wagering as a means to generate additional income. As a result, local operators often depend on high volumes and frequent low-value bids.

Kenyan Gambling Regulation

Wagering activities are legal in the state, but the laws surrounding it are complicated. The main adjustments for the sphere come from the Betting, Lotteries and Gaming Act of 1966, which does not specifically address the Internet sector.

In 2013, a constitution was adopted to control websites that propose sports bidding. The Betting Control and Licensing Board has been managing local wagering operations since then, primarily focusing on land-based enterprises.

Although iGaming is not officially regulated, the government allows entrepreneurs registered in other territories to freely work in the state.

In general, in Kenyan various types of amusements are legalised including:

  • betting;
  • lotteries;
  • casino games;
  • slots.

Features of the Gambling Tax System

In 2018, the authority reduced the levy on gross gaming revenue from 35% to 15%. However, they also introduced a 20% tariff on bettors' winnings, which did not sit well with the sphere and was later removed.

Currently, there are several wagering taxes in place in Kenya:

  1. Gaming earnings are charged at a rate of 15%.
  2. The lottery tariff is set at 15% of the income.
  3. The bookmaker levy is estimated as 15% of the profit achieved.
  4. The online amusement sector is not taxed yet.

The Main Things about Entering Kenyan Casino Market

Kenyan gambling business: key notions

The local gambling industry has great prospects and is one of the biggest in Africa. However, it lacks taxation and regulation for faster growth of the iGaming market.

Nevertheless, foreign sports betting and casino entrepreneurs can enter the sphere as the spheres have large audiences and profits.

To open a successful online gambling project in Kenya, businessmen will need to:

  • offer a wide range of games;
  • choose reliable payment systems;
  • get a licence;
  • buy dependable managerial software.

You can buy all these components from the Smart Money aggregator. Operators also order profitable turnkey and White Label gaming, sportsbook scripts, etc.

Get professional help in creating and customising a business plan to meet all the requirements of the Kenyan market. For more information, please contact our managers.

Hans Adrian

Hans Adrian

B2b Gambling Business Advisor & Strategist

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