Among the countries in East Africa, Kenya is swiftly becoming known for online gambling, thanks to its expanding system which permits licensed operators which are regulated to offer their services to Kenyan residents. The Kenyan nation is made up of 45 million + persons with a flourishing economy which has great prospects for the future and already attracts foreign investors. Among the industries aiding the Kenyan economic growth has been the Casino industry. With improvements in technology, the casino industry has grown in even more forms, such as online casino forms, and it is now easier for interested players to access Online-casino services simply with their phones or other gadgets which have an internet connection – for example over websites like www.online-casinos.com. Online casino gambling in Kenya gets more popular by the day and more companies are providing variety for the Kenyan residents.
Economic Impact of Legalized Online Casinos in Kenya
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Generally, Online betting in Kenya has existed for a while, it was in recent times that the government realized how lucrative this industry could be and decided to regulate the online casino industry. Prior to this, Kenyan residents who wanted to engage in online casino gambling had to rely on offshore websites which had no licenses or had to partake in unlawful gambling establishments before they could access their most favourite online casino games. However, with recent Kenyan regulations by the Betting Control and Licensing Board of Kenya, there’s been an aim to create a secure environment for players who wish to bet on online casino games of their choices.
In July 2016, it was reported that more than 5 million Kenyans were into betting for the previous five years. With the proliferation of online casinos, this number has continued to increase. Online betting has brought about both negative and positive effects to Kenya; however as regards to the Kenyan economy, online gambling has been quite profitable.
Economic Impact as regards Individuals
This online industry has bloomed with profits going to the fortunate Kenyan residents who hit jackpot while playing these online games. There have been certain fortunate winners who have had fortune smile on them and completely improve their financial positions forever. Some of the fortunate persons who have benefited from online casinos include Yannick Mahrez. Mr Mahrez, playing from Nairobi on Betway online casino hit jackpot when spinning reels on Mega Moolah. He had increased the size of his bets and benefited from this as he got returns of $3,456,000. Other lucky winners have also emerged through other online gambling platforms like online sports betting in Kenya.
Economic Impact as regards the Kenyan government
In terms of taxation and revenue, the Kenyan government acquires millions of dollars in the form of taxation and revenue from the casino industry. In fact; in recent times, to deter the addiction of gambling, Kenyan authorities began to increase taxation rates upon most online betting (includes legal online casinos and legal online sportsbetting) companies. In 2017, it increased the tax rate on online gambling to 35% which frustrated some online gambling companies such as Sportspesa and this is currently still an issue. In form of taxes, the Kenyan government had also acquired about $40 million dollars from the online gambling industry (includes sportsbetting and online casino industry) and still hopes to acquire about $2 billion dollars which it claims are unpaid. Also, for those who hit jackpot from online gambling activities, such persons have to pay a tax rate of about 20%.
Apart from taxations, Kenya as a whole has benefited from online casinos through investments from foreign companies. For instance, Betway online casino in Kenya is a subsidiary of Betway which is originally from the United Kingdom.
In all, when discussing the economic impact of online casinos in Kenya. Kenya has been able to benefit positively from the presence of online casinos. Not only do lucky Kenyan residents benefit from the huge payouts they win, but also the Kenyan government have found out about how lucrative this business is, and therefore acquires quite some revenue through taxations on these online casinos. Also, with how the online casino business has thrived in Kenya, the online casino industry could likely entice more foreign investors as long as the tax rates are not raised to enormously intimidating levels. You can get more relevant updates on Sports in general and stay more informed.
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