This archive report was first published on 26 September 2019.
As of September 26, 2019, the Kenyan betting industry was in a state of turmoil following a government crackdown led by Interior CS Fred Matiang'i on tax compliance.
The crackdown, which began in the second half of 2019, had a significant impact on the industry, with many leading betting firms struggling to get their businesses running.
Among the affected firms were SportPesa and Betin Kenya, which dominated the industry before the crackdown. Matiang'i had announced that the government would conduct security vetting on the operations and directors of the betting firms before renewing their licenses.
Despite the companies moving to court and public outcry, only about 10 licenses were renewed, with the Kenya Revenue Authority (KRA) deeming the companies tax compliant.
SportPesa was cleared by the taxman but was yet to get a license from the Betting Control and Licensing Board. The company was instructed to reapply for the license, which it did, but has not yet received it.
Smaller Firms Step Up ¶
The inability of leading betting firms to renew their licenses on time has created an opportunity for smaller firms to step up and fill the gap.
Some of the operational betting firms include Odi Bets, Betika, Eazi Bet, Ken Bookmakers, Eastleighbet, Mozzartbet, Lucky 2u, Palms Bet, Bet boss, and Kick off.
Odibets, for instance, was among the first to be cleared by the government for operations and has been providing services to Kenyan gamblers.
20% Withholding Tax ¶
As part of the deal to have their licenses renewed, betting firms had to implement a 20% withholding tax on winnings.
Odibets, Betika, and Betway were among the firms that returned to the market with this new development, but it attracted negative comments from gamblers who expressed their frustrations on social media.
The gamblers complained that staking too high on little odds could not bring a profit as most of it pays off the withholding tax.
Betika was on the spot over the manner it calculates withholding tax, with gamblers on social media lashing out at the betting firm using the hashtag #BetikaWasaliti.
Jackpot Winnings ¶
During the time sports betting dominated the country, we witnessed lucky gamblers walk away with millions of the jackpot prize.
However, with the absence of SportPesa and Betin, there hasn't been a lot of Kenyans who have profited a lot from gambling.
Odibets recently announced a half a million winner of an 8-team multibet, which has been the best ever recorded winning since the government crackdown.
Titus Kioi Muruga, a customer from Gatundu, managed to win a whopping Sh 427,181 after placing an 8-team multi bet on Odibets.
