Kenya’s gambling industry has been in the news for the last few months as the government, gambling operators and gambling watchdog have butted heads on a number of different issues. The latest news is that the Kenyan government is introducing a clause in its gambling bill that will prevent bets below Sh50 to be accepted by online gaming operators.
This will be a setback to the Kenyan gambling industry since most Kenyan players place their wagers on their mobile phones in small bets. The new bill is up for voting and will be debated in the Kenyan parliament.
The main thrust of the bill is that all online bets below Sh50 will be declared illegal. Most of the bets placed at Kenyan betting sites are currently less than Sh5 based on feedback from popular betting sites like BetPawa, BetYetu, and Elite Bet. These micro bets have fueled the rapid growth of online gambling in the Kenyan market.
Any operation that violates the Sh50 minimum will face a minimum fine of Sh5 million or a maximum jail term of six years. It is not just the domestic firms based in Kenya that will be subject to these new terms. The same restrictions will be applied to top international gambling firms such as Betin, SportPesa, and Betway.
To better monitor these stakes, the government plans to set up a real-time monitoring system that will be accessed by the national telecommunications regulator – the Communications Authority of Kenya. This would allow the regulator to track all gaming transactions remotely and keep track on the amounts being wagered at the different online gambling websites operating in the country.
The Kenyan gaming industry has grown significantly in the past five years. Currently, it is now worth Sh200 billion, which is the equivalent of $1.98 billion. This is an impressive achievement since it started from Sh2 billion.
One of the main reasons for this rapid growth is due to the increase in mobile phones. Thanks to services like M-Pesa, Kenya players are able to place bets, pay off losses, and get winnings on their phone without the need to link a bank account. Reports suggest that seven million out of 45 million Kenyans have registered for betting services.
The massive growth has also caused a rise in problem gambling numbers and the new clause limiting the minimum amount of online bets is directed at curbing gambling addiction in the country.
About The Author
