Betting industry is experiencing a significant downturn as gambling regulator moves to crack down on gambling activities coupled with government’s increased taxation in the sector.
As a result the gamblers’ winnings are declining by 14.87 percent to Sh24.07 billion in the nine months ending March 2025, despite a 17.04 percent increase in betting stakes to Sh75.18 billion.
This paradox highlights the impact of stringent regulatory measures and increased taxation on both operators and consumers.
The government’s aggressive taxation approach includes a 15 percent excise duty on stakes, up from 12.5 percent to 20 percent withholding tax on winnings, and a 15 percent tax on gross gaming revenue.
These measures have led to a 41.89 percent surge in betting firms’ revenues, reaching Sh32.09 billion, even as daily average winnings for gamblers dropped to Sh87.83 million against daily stakes of Sh274.37 million.
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In response to growing concerns over the social impact of gambling, the Betting Control and Licensing Board (BCLB) imposed a 30-day suspension on all gambling advertisements across media platforms, effective April 29, 2025.
The BCLB cited the mischaracterization of gambling as a legitimate investment opportunity and its adverse socioeconomic consequences as reasons for the ban.
The suspension has sparked debate among stakeholders. The Association of Gaming Operators of Kenya (AGOK) criticized the blanket ban, arguing that it penalizes compliant, tax-paying firms while failing to address the operations of illegal and offshore platforms.
AGOK has called for structured dialogue to develop balanced advertising guidelines that promote responsible gaming without undermining lawful business operations.
The regulatory landscape is poised for further changes with the proposed Gambling Control Bill, 2023, currently awaiting presidential assent.
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The bill aims to enhance oversight by replacing the BCLB with a new Gambling Regulatory Authority and includes provisions such as requiring online gambling firms and the national lottery to deposit Sh200 million to secure operating licenses.
Despite these challenges, betting industry continues to attract new entrants, with the number of licensed betting firms doubling from 100 in 2021 to 221 in 2025. However, several operators have exited the market, citing the punitive tax regime as a significant factor in their decision.
The government’s projection of a Sh4.2 billion decline in betting sector tax revenue for the current fiscal year further tests the industry’s resilience, signaling a potential slowdown in an industry that has previously withstood regulatory crackdowns.
