Online Sports Betting Epidemic Sweeps Kenya
In Kenya, easy smartphone access is addicting a new generation of Kenyans to sports betting on unprecedented levels using the allure of easy earnings. (Flickr)
In Kenya, sports betting has gone from an activity reserved for wealthy elites to a mainstream pastime, made accessible by the increasing prevalence of smartphones and the internet. In the wake of its popularity, sports gambling has financially ruined many Kenyans as the government attempts to rein-in the industry.
A survey conducted by Geopoll in 2017 indicated that over half of youths in sub-Saharan Africa have tried gambling. The problem is especially prominent in Kenya, where over 76 have. According to the same Geopoll, 96 percent of Kenyan youths who had engaged in gambling had done it through their smartphones, demonstrating how increased access to the internet and smartphones is driving the phenomenon
“My phone comes in handy, inasmuch as I can check the day's games on the newspaper [sic],” said an anonymous gambler in an interview with Al Jazeera. “I can use the sports betting apps to check the games' odds in real time as they change and deposit the money in my mobile wallet.”
Prior to widespread internet access, illicit gambling was run primarily out of gambling dens where even minors could place bets. After a government crackdown, the bulk of sports betting shifted online.
A 2016 study in the International Journal of Liberal Arts and Sciences also estimated that 78 percent of Kenyan university students could be considered “problem gamblers.” The Betting Control and Licensing Board assessed 2016-2017 gambling revenue at $198 million, equivalent to about half the annual state health budget.
Many players are drawn to this form of gambling by the allure of easy cash prizes for little investment. The convenience of betting from a phone and on a wide range of sporting events has made it easier for the dozens of companies operating in this industry to hook a new generation of users.
“It got me thinking this could be a way of life. It was a good experience, it seemed like fun. You could watch your team playing, and actually earn money doing it,” said Nelson Bwire, a 24-year-old economics student at Kenyatta University.
The growth of the industry has triggered ongoing tensions between the Kenyan government and the sports betting industry, a now $2-billion industry in Kenya. The dispute centers around gambling companies’ alleged tax evasion. In 2018, the government also attempted to levy a 35-percent tax on all gambling revenue until companies threatened to relocate outside the country, forcing the government to reduce its final tax rate. The Kenyan government is also considering a separate tax on gamblers’ winnings to deter problem gambling.
“The local governments are dealing with high cases of suicide as a result of this desperation…. we must say no," said Kenya's interior minister, Fred Matiangi. "What kind of country are we building, are we telling our children to do nothing with their lives except bet and wait on a big win to become an overnight millionaire?"
Since 2016, at least five suicides related to gambling losses have been reported, in addition to numerous gambling-related cases of domestic violence, bankruptcy, and eviction.
For now, the Betting Control and Licensing Board is adopting new measures to potentially curb gambling addiction for minors, including restrictions on television gambling advertisements and celebrity endorsements of gambling products.