Connecting with Kenya: an overview of the Kenyan gambling market

Kenya is home to roughly 55 million people and one of Africa’s strongest economies. It’s also one of the continent’s biggest gambling markets, with vast numbers of devoted sports fans placing massive amounts of bets via bookies in Kenya.

This article provides an overview of online gambling in the Kenyan market, so if you’re looking for practical advice on how to enter the rapidly expanding casino and online betting market in Kenya, you’ve come to the right place.

Kenyan gambling market: types of gambling

The gambling market in Kenya is enormous, projected to reach a value of nearly $831 million in 2025.

Ranked third in Sub-Saharan Africa in terms of market size, behind South Africa and Nigeria, Kenya also leads the region when it comes to number of young bettors — younger Kenyans spend much more on gambling than their peers in other African nations.

Another thing that sets Kenya apart is access to technology.

Kenya has a very high internet penetration rate for an African country – 40.8% — and it is estimated to reach 64.94% in 2025. The majority of internet users in the country do so from mobile devices; there are an estimated 122 mobile subscriptions for every 100 inhabitants, according to the World Bank.

This rapid digitalization has triggered explosive growth in the online gambling sector. This isn't just a matter of convenience, but also a necessity for many residents of rural areas in Kenya without access to land-based betting shops and casinos.

Already in 2019, 88% of bettors used their mobile phones to place wagers, and this number is only expected to increase.

Of course, these factors contributed to the flourishing of online gambling. The variety of gambling options in the country has increased: traditional gaming has now been joined by online sports betting, virtual games, and live dealer games.

According to projections from Statista, there should be 517,000 sports bettors, 990,700 lottery and bingo players, and 2 million casino players by 2029.

One of the major trends in the online gambling market in Kenya is the increasing popularity of mobile gambling. The rollout of cellular technology effectively leapfrogged broadband, meaning most Kenyan bettors are already living in a mobile-first world. Online gambling operators have capitalized on this trend by developing mobile-friendly platforms and betting apps in Kenya. This means players engage in gambling activities on the go, at their convenience, contributing to the market's growth.

Another notable trend is the increasing variety of online gambling options available to Kenyan punters. In addition to traditional casino games such as slots and table games, online gambling platforms now offer sports betting, virtual sports and even live dealer games.

Betting in Kenya

The Kenyan gambling market is dominated by sports betting.

Kenyan punters have shown a growing interest in online sports betting due to several factors. Primarily, the convenience and accessibility of online platforms have facilitated easier access to betting for players from the comfort of their own homes or on the move. A 2021 survey from GeoPoll reveals that 37% of respondents bet on sports weekly, 28.5% do so monthly, 18% daily, and 15.8% multiple times a day.

This has particularly resonated with a younger demographic, who are more tech-savvy and prefer the convenience of online betting. Furthermore, the broad array of sports and betting options has drawn in customers who relish the diversity and exhilaration of wagering on a variety of events.

Without a doubt, football is Kenyan punter’s bet of choice. There are the most popular championships on betting volume in the country:

• The English Premier League
• UEFA Champions League
• Spanish La Liga
• Kenyan Premier League

Other sports also see significant betting activity:

• Rugby
• Basketball
• Cricket
• Athletics
• Olympic Games
• Boxing

The first, and one of the best, betting sites in Kenya was SportPesa, which received an operating license in 2013. It remains the most popular betting platform, with 82% of Kenyan gamblers holding an account there. Plenty of other brands have noted SportPesa’s success and followed suit; the number of licensed betting firms in Kenya has grown to nearly 128.

Kenya is becoming more and more popular and more new and active betting sites are opening in the country. These are some of the best active betting companies in Kenya:

• SportPesa
• Betin
• Elitebet
• Betika
• Mcheza
• Betpawa

…and many more.

Gambling in Kenya

The thriving casino market almost matches the popularity of betting. Land-based casinos, primarily located in major cities, consistently draw crowds. Some of the country’s most famous casinos include:

• Casino Flamingo
• Mayfair Casino
• Captain's Club Nairobi
• Golden Key Casino
• Senator Casino Mombasa

In recent years, large casino businesses have transitioned online, opening up a vast array of opportunities.

Other forms of online gambling games in Kenya which are popular include:

• Blackjack casinos
• Roulette
• Online poker
• Slots

Live dealer casinos in Kenya also provide the real thrill of real-time gaming and remain popular with Kenyan gamblers.

The nuances of the Kenyan legal framework

Is gambling legal in Kenya? Gambling, in general, is completely legal in Kenya. However, the gambling laws and betting regulations in Kenya are far from simple.

The main regulatory document regarding gambling laws in Kenya is the 1966 Betting, Lotteries, and Gaming Act which has since been amended, especially to adapt it to the needs of a growing market and technological advance.

The most significant recent change is the introduction of the Kenya Gambling Control Bill 2023, which aims to overhaul the gambling industry. Kenya's National Assembly has given the green light to the bill, having rebuffed several amendments put forth by the Senate. The bill aims to regulate the betting and gambling industry, enforce tax laws, and protect citizens from exploitative practices.

All certified operators will be obligated to allocate a minimum of 30% of their holdings to Kenyan citizens. Foreign companies must pay 5.5 million KES ($42,504) for public gaming and 6.5 million KES ($50,232) for public lottery licences. The additional 200 million KES ($1,55 million) security deposit raises entry barriers, making it harder for new players to enter the market.

All entities must also facilitate transactions via a bank registered in Kenya. Furthermore, entities are required to deposit either a bank guarantee or an insurance security bond to cover any unlicensed gambling activity.

The bill will go into effect once it is signed by the president.

The fight against illegal casinos

The recently introduced Gambling Control Bill seeks to significantly expand the board's original mandate.

This follows previous statements in 2022 that most operators in Kenya were not complying with licensing requirements. A wide range of new measures will increase taxes and fines for offenses, as well as prohibit the registration of children for any gambling activity. The bill will also ban bets below KES 20, and a fine of 5 million will be imposed on any operator offering a bet below KES 20. Radio and TV channels will also be prohibited from broadcasting gambling advertisements between 6:00 and 22:00.

Also, any individual or entity that promotes an unlicensed lottery will receive a 1 million KES fine or one year in jail.

The taxes on gambling games in Kenya

The Kenya Gambling Control Bill 2023 imposes a 15% gaming tax on all gaming revenue, payable to the Kenya Revenue Authority (KRA) by the 20th of every month. The Senate proposed an additional 15% tax on betting, lottery, and prize competitions, but the proposal was rejected by the National Assembly. Also, a minimum of 30% of the proceeds from each lottery must be allocated to the designated charitable cause.

The cost of a gambling license in Kenya is based on the gambling activity and whether the applicant is local or foreign. Final costs may vary depending on the specific operations you need to conduct.

Next steps: How to enter Kenyan Market

Kenya is a market with a lot of potential, but it requires caution and a well-thought-out business plan to be commercially successful.

Conclusion

The Kenyan iGaming industry is a vibrant and promising market for companies and entrepreneurs interested in the African gaming landscape.

Growing internet penetration and extensive mobile device usage provide an ideal environment for online gambling platforms. With a young audience keen on online betting and gambling, there's potential for significant growth and development in this market.

Entering a new market is no easy task. If you require professional assistance or wish to fine-tune your existing business plan to be a perfect fit for Kenya, contact us for a free consultation. Our team of legal professionals and iGaming experts is ready to assist you.