The Growing Controversy Over Kenya Sport Betting

Kenyan elected officials and community leaders are warning about the increasing prevalence of sports betting in the country. It has been reported that sports betting is destroying families, ruining college tuition, and even driving people to suicide. To date, the prevalence of sport betting in the country has not been regulated or taxed. However, the government is working to crack down on the practice. Read on to learn more about the current legal situation and the tax implications for sports betting in Kenya.

Sports betting is legal in Kenya

Kenyan citizens can enjoy the thrill of sports betting on mobile phones. There are 58 million mobile money subscribers in the country. As a result, sports betting on mobile phones is the dominant form of gambling in the country. The government does not regulate the practice and does not prosecute offenders. Kenyans can use credit cards, e-wallets, and mobile money transfers to fund their sports betting accounts.

Kenya is home to a large number of sports teams and leagues. Currently, the most popular sporting events for Kenyans to bet on include soccer, rugby, cricket, and Aussie Rules football. In addition, many websites allow wagers on esports leagues such as Counter-Strike.

The Betting Lotteries and Gaming Act of 1966 legalized sports betting in Kenya. This law makes betting on sports both local and international games legal in the country. Kenyans can place wagers on a wide variety of events, including the first goal scored by a team, total points scored by a team, or the number of corners in a game.

It is unregulated

There has been a growing controversy over Kenya sport betting. Community leaders and elected officials have voiced concern over the issue, noting that sport betting has broken families, drained college tuition funds, and driven some to suicide. However, there are some safeguards against scams and unethical practices.

SportPesa was one of the first mobile betting companies to open in Kenya, and it was launched by Hempstone Ngare, a former radio reporter. The company competed by using aggressive marketing, including t-shirts to lure customers. A recent survey conducted by Kenyatta University found that 78% of male students had tried betting. The percentage of female students was only slightly higher, at 57%.

Kenyan authorities have attempted to rein in the industry's excesses, but there has not been much progress. New taxes on stakes have discouraged some bettors from placing high bets. The government has also barred gambling firms from advertising on television and radio during daytime hours. In July, the betting control and licensing board rejected the renewal of licenses for 27 betting firms, citing back taxes.

It is taxed

The government of Kenya is looking to reintroduce a 20 percent excise tax on gambling stakes. This tax has caused Sportpesa and Betin to leave the country in 2019. It's unclear whether the tax will be reinstated, but it's a step in the right direction. The government has also proposed to increase the excise tax on advertisements for lottery and prize competitions to 15 percent.

The tax has a long history in Kenya. It started as a 10% excise tax on stakes. But the tax was reinstated in the 2021 Finance Bill, with a 20 percent stake tax. However, the Finance Committee decided to lower the tax to seven percent after hearing from Sportpesa and other betting companies. The company argued that the tax violated the excise duty law. Start on Baji Live.

The tax on stakes has been a source of controversy for years. Last year, the Kenya Revenue Authority doubled the stake tax from ten to twenty percent. This came after a long-running dispute between the government and the industry. In response, many local market leaders pulled out of the market. The Parliamentary Finance Committee concluded that the increased stake tax had reduced tax revenue. In response, the committee suggested scrapping the tax altogether. Earlier this year, President Uhuru Kenyatta endorsed this proposal.