AGOK: Betting industry pays more tax than it gets credit for

Association of Gaming Operators Kenya says the licensed betting sector sustains over 500,000 livelihoods in the country. [File,Standard]

Kenya's betting industry says it pays more tax than it gets credit for. Licensed operators contributed Sh24 billion to the exchequer in 2024, according to the Association of Gaming Operators Kenya.

The industry body said the sector's tax contributions rose from Sh5.7 billion in the 2021/22 financial year to Sh28.45 billion by April 2026, despite the number of licensed operators remaining largely unchanged.

AGOK attributed the increase to tighter compliance enforcement and improved revenue tracking rather than new entrants or higher tax rates.

Gambling taxes drawn from excise duty on stakes and withholding tax on winnings totalled Sh22.3 billion in the 2023/24 financial year, AGOK said, funds it said flow into public services including roads, hospitals and schools.

The association distinguished licensed operators and offshore unregulated platforms that continue to attract Kenyan bettors.

"This tax revenue comes from Kenya's licensed, regulated operators," said John Mutua, AGOK chief executive officer, noting unlicensed platforms return nothing to the exchequer and pose the sharper risk to consumers and the state.

The sector directly employs more than 10,000 Kenyans in software engineering, compliance, customer service, marketing, finance and data analytics, AGOK said.

A further 500,000 Kenyans depend indirectly on the industry, including agents, suppliers, media houses and transport operators, according to the association.

Gaming operators under AGOK invested an estimated Sh1 billion in sports sponsorships and corporate social responsibility initiatives in 2024, funding grassroots athletics, Football Kenya Federation (FKF) Premier League clubs, national teams, women's football, rugby, hockey and marathon events across several counties. Among the beneficiaries was the Safari Rally, Kenya's World Rally Championship fixture.

AGOK members also funded borehole projects in underserved counties, backed education initiatives and donated to the Kenya Red Cross, the association said. During the Covid-19 pandemic, member companies donated medical equipment to hospitals.

AGOK, working with Kenya's gambling regulator, ran a responsible gambling campaign branded Chukua Control, Swahili for 'Take Control'.

A second phase launched in 2026 to coincide with the FIFA World Cup betting season, using digital advertising to reach bettors during what AGOK called the highest-risk period on the Kenyan betting calendar.

 The campaign urged bettors to set limits and take breaks and directed them to the national gambling helpline, 1190.

The sector is adjusting to the Gambling Control Act 2025, Parliament's most significant gambling law reform in decades.

The Act, passed on August 7, 2025 and in force since August 26, 2025, replaced the Betting, Lotteries and Gaming Act and created the Gambling Regulatory Authority (GRA) to take over from the Betting Control and Licensing Board (BCLB).

The new law extends regulatory oversight to online betting, gaming software provision, equipment manufacturing and nationwide prize promotions.

AGOK said it took part in the GRA's public consultation process and flagged provisions it believes could disadvantage smaller operators.