The number of licensed betting companies in Kenya have dropped from 128 in September 2023 to 118 in August 2024 according to data from the Betting Control and Licensing Board (BCLB).
While some of the companies have had their licenses revoked, others like Betsafe announced shut down because of financial constraints, leading to mass job losses.
Nonetheless, several other new players have joined the market including Superiors Ideas Kenya Limited, Top Deck Entertainment, Poker Kings Limited, Lucky Majesty Limited, Glory Bet Limited.
Earlier in the year, the Betting Control and Licensing Board (BCLB) Chief Executive Peter Mbugi launched a crackdown on betting companies operating without licenses in Kenya.
Also Read: Mass Job Losses as Popular Betting Company Announces Exit
Why Betting Companies Are Exiting the Country
Several betting firms that have exited the Kenyan market have cited high unnecessary taxation.
In April, UK-based betting firm W88 for operating in Kenya without a license, with the BCLB Chief Executive moving to pull down their websites.
Betting firms in Kenya are taxed on the gross gaming revenue at a rate of 15 percent besides paying corporate tax of 30 percent on profits.
Additionally, they pay income tax at the rate of 16 percent, adding to the annual licensing and compliance fees. At the same time, gamblers pay an excise tax of 12.5 percent on every betting stake and a further 20 percent withholding tax on every winning bet.
Before it was scrapped, the Finance Bill 2024 proposed an increase in the excise tax on betting stakes from 12.5 percent to 20 percent. This meant that gamblers would pay Ksh20 for every Ksh100 staked, up from the current Ksh12.5.
This caused panic and concern among betting companies operating within the country, and the subsequent new on exit from the market.
Also Read: Maybets Introduces Ligi Soo: A New Thrilling Virtual Betting Experience
Government Crackdown on Companies
President William Ruto on December 11, 2023, assented to the National Lottery Bill (National Assembly Bill No. 69 of 2023).
The bill paved the way for the establishment of the National Lottery Board that will administer the newly established National Lottery board with members drawn from institutional representatives as well as independent members.
Also, the Board was tasked with the supervision, control and monitoring of the operations of the National Lottery a move meant to ensure the funding of social development in the country.
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