Fun fact:
The biggest beneficiaries of sports betting in Kenya are not betting companies.
The biggest beneficiaries are Safaricom PLC and KRA.
Here's an interesting breakdown:👇👇
The biggest beneficiaries of sports betting in Kenya are not betting companies.
The biggest beneficiaries are Safaricom PLC and KRA.
Here's an interesting breakdown:👇👇
In 2021, Kenyans spent Sh 83.2B to place bets between March and September alone.
This was a 69% increase from the previous year.
As a result, Safaricom's revenue from betting doubled from 1.48B to 2.95B
This was a 69% increase from the previous year.
As a result, Safaricom's revenue from betting doubled from 1.48B to 2.95B
The volume of bets funded via Mpesa increased by 84.7% to 347.8 million
In 2020, betting was among highest contributor of revenue coming after transfers and payments.
This was a 12% increase YoY.
In 2020, betting was among highest contributor of revenue coming after transfers and payments.
This was a 12% increase YoY.
KRA on the other hand is estimated to have collected *at least* Ksh 6.2B from betting.
Notably;
- KRA takes 7.5% of the value of bets placed.
- KRA also takes 20% of winnings
- KRA takes corporate taxes on betting firms.
Notably;
- KRA takes 7.5% of the value of bets placed.
- KRA also takes 20% of winnings
- KRA takes corporate taxes on betting firms.
Gamblers lose money via betting, investors collect the money via dividends earned from Safaricom's revenue, part of which is contributed by gambling.
KRA also collects more money via the heavy taxation on betting in the country which increases their revenue to finance projects
KRA also collects more money via the heavy taxation on betting in the country which increases their revenue to finance projects
The winners and losers in this case are clear.
Sources:
1/ Safaricom FY21 annual report: safaricom.co.ke
2/ Business Daily businessdailyafrica.com
Sources:
1/ Safaricom FY21 annual report: safaricom.co.ke
2/ Business Daily businessdailyafrica.com
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