Between 2018 and last year, bets totaling Sh620.97 billion were placed by gamblers, showcasing the frenzy that has established Kenya as the country with the highest proportion of young bettors in Africa.
Last week, the National Assembly Committee on Sports and Culture received a report highlighting the growing fascination with betting among millions of Kenyans, including both the unemployed and employed individuals, all seeking a fast way to make money.
With a staggering 76 percent of young gamblers, Kenya leads Africa in terms of the highest proportion of youth engaged in gambling activities. Moreover, these Kenyan gamblers tend to spend more on bets compared to their counterparts across the continent, even in the face of heightened taxation efforts.
Gamblers are required to pay taxes on their winnings and also face an additional levy based on the amount they stake. Meanwhile, gambling companies in Kenya have seen a rise in various taxes over the years to discourage the growth and attractiveness of the gambling industry.
Kenya has the highest percentage of young gamblers in Sub-Saharan Africa (76 percent), who outspend their peers on a per-capita basis, with 96 percent of them using mobile devices.
the report reads.
Kenya, spending billions of shillings on betting, has emerged as Africa’s third largest gambling market, estimated at a value of Sh200 billion per year. This position is only surpassed by Nigeria and South Africa.
However, the report does not provide a detailed analysis of the annual betting stakes during the specified period. Nonetheless, it does reveal that betting companies paid out a total of Sh532.72 billion to gamblers as their winnings.
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Between 2018 and 2022, the firms generated a total of Sh88.24 billion in gross gaming revenue.
The state intentionally implements taxes on both betting stakes and winning bets, with a 12.5 percent tax on the stakes and an additional 20 percent withholding tax on winnings, as a strategy to discourage gamblers.
In addition to gamblers, betting companies are subjected to a tax rate of 15 percent on their gross gaming revenue, which is calculated by subtracting the winnings paid out from the total turnover. Furthermore, these firms are also required to pay corporate tax on their profits at a rate of 30 percent.
Due to the prevalent unemployment rate, gamblers have been resorting to spending larger sums of money on betting, hoping for quick winnings to meet their daily expenses.
A typical gambler is male, below 36 years of age, from a low-income household, with at least a secondary school level of education.
Due to the prevalent unemployment rate, gamblers have been resorting to spending larger sums of money on betting, hoping for quick winnings to meet their daily expenses.
Out of the 110 licensed betting firms listed by the Betting Control and Licensing Board, approximately 22 of them are fresh additions.
Source: Business Daily
