This archive report was first published on 16 December 2019.
On December 16, 2019, the Kenyan government introduced a new tax on the country's betting sites, sparking a heated debate on the regulation of online gambling.
The tax, which was met with resistance from the industry, led to the withdrawal of two of the country's most popular betting sites, Betin and Sportpesa, from the Kenyan market.
These sites, which held a combined 60% share of the market, decided to exit the country in response to the new tax, leaving Kenyans with fewer options for online betting.
As a result, players have turned to foreign operators, which has led to a significant increase in market share for international betting sites such as Betway, Bet365, and 22bet.
The withdrawal of Betin and Sportpesa has also had a ripple effect on the country's football clubs, with the KPL and clubs like Gor Mahia and AFC Leopards losing a significant portion of their income from sponsorship deals with Sportpesa.
According to Sportpesa, the current situation in Kenya is a 'non-hostile regulatory environment', and the nation will lose more from the gamer's exit than it will gain, as it will open the market up for foreign, unlicensed operators who will not pay any tax in Kenya.
The government, however, argues that gambling has a detrimental influence on the population, particularly the youth, leading many to be 'sucked into a cycle of betting, debt, and poverty'. President Uhuru Kenyatta has even called for a nationwide ban on gambling.
However, as has been the experience in other countries, banning online gambling does not tend to prevent players from finding ways to circumvent local laws and regulations.
As the debate on online gambling continues, one thing is clear: the nation will lose work opportunities, tax income, and sponsorships for sports clubs and athletes in the process.
