Hollywoodbets, one of Africa’s leading gambling firms with roots in South Africa, has closed its Kenya subsidiary. Hollywoodbets Kenya Shut Down
According to a post on the brand’s social media channels:
Jambo Kenya. Please note that Hollywoodbets’ sports betting services will no longer be available in Kenya from midnight on the 31st of July 2023. All deposits will be disabled within 24 hrs. For withdrawal enquiries, please contact email@example.com Asante sana
The site has since pulled down all products and services on the Kenyan site. A statement on the now inactive site reads, “Our betting services in Kenya are no longer available.” Hollywoodbets Kenya Shut Down
There has been no official statement from the company as to what caused the brand that is performing so well in South Africa to close down its Kenyan site. Theories advanced by a few industry experts, however, point to the brand’s strategy when entering the market vs the taxing environment in Kenya, which is now headed South. Hollywoodbets Kenya Shut Down
However, the news received little attention from their fans on social media, where the announcements were made. One of their followers on Facebook who goes by the name Ale Ruto on Facebook while reacting to the announcement said, “Hatujashangaa ata.” meaning “We are not surprised.”
Is it a matter of wrong Strategy or taxes?
One user on Linkedin responded harshly to the announcement cautioning businesses against investing in the Kenyan market without conducting appropriate research and having the will to establish a serious business in the country that he describes as rich with a large gaming market. Hollywoodbets Kenya Shut Down
The Kenya betting industry is NOT for every betting brand. We have very strong, vibrant, cash rich, huge customer bases and seemingly loyal customers. And our AWPU is pretty small in comparison to say Ghana, Nigeria or SA. And the crazy statutory tax requirements that keep evolving don’t make it any easier. (This needs more than just a post).
You cannot come here with a South African led sportsbook and hope to win in this market. Kenyans do not have access to watch horse racing games. It’s foreign. Safe to say it’s a mzungu thing. Here – football is king. Especially the likes of EPL, Champions League etc.
And hope to win in an ivory tower not engaging customers onground. Not being present in their communities. Trust is earned over time.. And no you will not get profitable in 12 months. Give or take from my experience- if you are not ready to invest in heavy ATL and BTL presence with the right product portfolio and retention strategies….plus working capital burn through of 2,000,000$ per year for a minimum of 3 years…don’t touch KE.Klaire Muriithi, the brand titan wrote on Linkedin while reacting to the news.
The above statement was supported by Finvert IO LLC;
Great insights! Thanks for sharing this valuable post and shedding light on the challenges in the Kenyan betting industry. It’s essential to understand the market and invest wisely to build trust and success.
Some may also argue that the action was prompted by the government’s decision to raise gaming taxes, as outlined in the Finance Bill 2023, which was just signed into law by Kenyan President Dr. William Ruto.
This news has just come days after popular gaming brand 888bet announced that they will be migrating to Betlion on the 31st of July, 2023. The two companies are leaving the market just a few months after launching in Kenya. The consequences of such actions are dire as jobs will be lost and existing investments will become losses for investors. Hollywoodbets Kenya Shut Down
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