Earlier this year, the government imposed a hefty tax on the country’s betting sites.
These new regulations were not completely well received, and the two most popular betting sites (with a combined 60% share of the market), Betin and Sportpesa, decided to withdraw from the Kenyan market.
This, in turn, has led to fewer options for Kenyans looking to bet online, as players now turn to foreign operators.
The new tax has had a ripple effect leading to Betin and Sportpesa laying off an estimated 2,500 employees countrywide.
Also, the KPL and football clubs Gor Mahia and AFC Leopards lost a large chunk of their income which came from their sponsorship deals with Sportpesa.
Sportpesa called the current situation in Kenya a “non-hostile regulatory environment”, and argued the nation will lose more from the gamer's exit than it will gain, since it will open the market up for foreign, unlicensed operators who will not pay any tax in Kenya.
The government argued that gambling was having a detrimental influence on the population as well as affecting the youth leading many to being “sucked into a cycle of betting, debt and poverty”.
And to this end, President Uhuru Kenyatta isn’t simply satisfied with increasing taxation but also urged lawmakers to work for a nationwide ban on gambling.
However, as has been the experience in a number of other countries, banning online gambling does not tend to prevent players, who seemingly always find a way to circumvent local laws and regulations.
Even though Sportpesa and Betin have withdrawn from the Kenyan market, there are still many betting sites for Kenyans to choose from.
Already, international operators, such as Betway, Bet365 and 22bet are assuming ever increasing market shares in the absence of Betin and Sportpesa.
Of course, one might argue that the new taxation regulations, or even a ban, would make online gambling less accessible for Kenyans.
But will that mean less accessibility for the average citizen, or for the problem players that the government means to protect?
Instead, the nation will lose work opportunities, tax income and sponsorships for sports clubs and athletes in the process.
Things that do have an impact on regular Kenyans lives. And it might be in vain.
The question of online gambling is of course not simply as black or white as it might initially seem, as there are potential benefits to both sides of the argument.
Only time will tell how this will play out.
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