10 betting firms exit Kenyan market

The number of licensed betting firms has fallen by 10 since the start of this year, in what could signal that some have had their licences revoked or others willingly closed shop.

The number of net exits is based on the latest list from the Betting Control and Licensing Board (BCLB) that shows there are 118 licensed betting firms, down from 128 in January.

The betting regulator had not responded to queries on what led to the drop by the time of going to press.

However, several betting firms that have exited the Kenyan market have cited "punitive taxation" as the main reason for closing shop.

For example, Betsafe closed shop in May this year citing the heavy taxation that it said has made operations in the betting industry difficult.

Read: Betting, gaming players warn against more taxes

In the latest list, 12 firms are new entrants to the market and include Top Deck Entertainment, Lucky Majesty Limited, Superior Ideas Kenya Limited, Glory Bet Limited and Poker Kings Limited.

Currently, betting firms are taxed on the gross gaming revenue at a rate of 15 percent besides paying corporate tax of 30 percent on profits.

They are also required to pay income tax at the rate of 16 percent adding to the annual licensing and compliance fees.

Besides betting firms, gamblers pay an excise tax of 12.5 percent on every betting stake and a further 20 percent withholding tax on every winning bet.

Kenya has the highest number of youthful gamblers at 76 percent, placing the country ahead of Nigeria and South Africa. BCLB data shows that gamblers spend an average of Sh2,500 to bet every month with 80 percent of the punters earning less than Sh30,000 per month.

Betting is seen by many gamblers, especially the unemployed as a quick way of making cash to foot daily bills, explaining a popularity that continues to defy heavy taxation.

The Treasury has over the years stepped up efforts to curb the betting craze in the country through increased taxation besides strict compliance measures from other agencies in a bid to fight use of the sector for money laundering.

For example, Treasury targeted to hike excise duty on betting stakes to 20 percent via the Finance Bill, 2024 that was however rejected.

The tax is currently set at 12.5 percent.

Read:  Winners and losers in Ruto tax trade-off plan

Additionally, the Gambling Control Bill of 2023 proposed a gambling tax to be charged at the rate of 15 percent of a betting firm's gross gaming revenue and a further one percent monthly levy on the same revenue.

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