The sports betting sector in Kenya has grown exponentially over recent years, with especially soccer being a favourite sport among sports bettors. Sports betting has attracted millions of young adults and has both created economic opportunities and societal concerns. With the increasing interest in soccer betting and sports betting in general, the Kenyan authorities have had higher stakes in play. In response, the Gambling Control Bill of 2023 was developed, with the aim to address a growing call for regulatory oversight, youth protection, and economic leverage. This proposed legislation would mark a turning point for the gambling industry in Kenya.
Betting boom driven by youth, technology, and soccer
Soccer has always been at the heart of the sports culture in Kenya, regarded as the most popular sport in the country. This is also reflected in the sports betting sector, where numbers from Standard Media found that 79% of bets by Kenyan youths are placed on soccer matches. It is especially the youth in Kenya which constitutes a big part of the sports betting activities, with a poll by TGM Research finding that more than 63% of Kenyan youth have been involved in sports betting activities. The amount of sports betting operators has also grown exponentially in the country. Major operators like Bombastic soccer betting offers sports fans various opportunities to bet on major soccer leagues around the world, among a long list of other types of sports as well.
This trend among the youth is also fuelled by a combination of a high smartphone penetration in the country, coupled with low-cost data plans and an enthusiastic soccer fanbase. As sports betting has moved to mobile devices, it has become more accessible to young Kenyans. However, this growth in the market also comes with some social challenges, with the potential for gambling addiction among youth being a major concern.
Legislative changes: The Gambling Control Bill 2023
The Gambling Control Bill 2023 was passed by the National Assembly in December 2023 and is currently under parliamentary review. The bill aims to address some of the social challenges that comes with the increase of sports betting and the widespread access to sports betting platforms through a robust regulatory framework. If the bill is passed, it would replace the current Betting, Control, and Licensing Board (BCLD) with a new Gambling Regulatory Authority. One key element of the bill is to set a minimum betting amount, with the intention to curb excessive gambling by imposing stricter betting limits.
Another key feature of the bill is the control of advertising. Restriction on gambling ads on TV and radio, by limiting it to be banned between 6 a.m. and 10 p.m., has the purpose of minimizing exposure of minors and youth. Currently, gambling ads need to display a warning message, but the new bill would also mandate advertisement being limited in scope and focused on adult audiences.
Economic impact and the driver for local ownership
The betting industry in Kenya has grown into becoming a powerful economic driver which contributed billions of shillings annually in taxes. The government’s revenue from gambling taxes has grown extensively, especially due to the rise of sports betting. This is something that the government will continue to strive for through the new bill.
For example, the bill mandates that at least 30% of gambling firms operating in Kenya are locally owned. In doing so, the government is preventing capital outflow by keeping a portion of the betting revenue within the country. Furthermore, the bill is also imposing a tax increase. It would double the current 7.5% tax, so that sports betting operators would have a 15% tax on gross revenues. The aim with this increase is to boost government revenue while also managing the industry’s impact on the economy and society.
Kenya’s position on the continental stage
The proposed bill in Kenya is reflecting a broader African trend where countries like Nigeria, South Africa, and Ghana are implementing similar legislation to manage the continuous growth in sports betting. According to Global Newswire, the gambling market in Africa is growing at a compound annual growth rate (CAGR) of 7.82%, with revenues increasing to over USD 1.5 billion in 2023. In the light of these numbers and trends, governments in the region have recognized the need for more structured regulatory frameworks, which are both meant to ensure responsible gambling and capitalize on the economic potential.
The proposed bill in Kenya has drawn comparisons to South Africa’s gambling reforms, where increased licensing fees, strict advertising guidelines, and age restrictions have been imposed.
Concluding remarks: The continuing debate of balancing regulation and personal freedom
Even though the proposed bill in Kenya have gained great support from legislators and advocacy groups focusing on consumer protection, the bill has also faced criticism from parts of the betting industry and users who argue the bill could restrict individual freedoms. It is especially the minimum betting requirements that have met some resistance, as opponents to the bill argue that it could discourage low-income players from engaging in smaller bets for entertainment.
However, to respond to these concerns, Kenyan legislators and the Gambling Regulatory Authority are expected to work closely with stakeholders to refine the bill. This will be done to ensure it addresses social concerns, but without alienating responsible bettors or harming the potential growth of the industry. As the bill represents Kenya’s attempt to establish a balanced and sustainable gambling environment, the regulations could set a benchmark for other African nations.
