How Poker and a Sh25M Gamble Helped Birth Sportpesa

In a recent podcast with pilot Eric Mutiso, Captain Ronald Karauri, the Member of Parliament for Kasarani, shared the fascinating story of his entry into the world of sports betting and how he became one of the key figures behind Sportpesa.

Karauri’s journey began with a growing interest in poker. "I had become a gambler. I still play poker to this day," he said.

His fascination with the game was sparked by watching poker shows on ESPN, and after honing his skills at home, he decided to try his hand at casino poker. It was through poker that Karauri met the individuals who would later become his business partners.

“The beauty of poker is that you can immediately tell the character of people by how they play, how they react to losing and winning money," he explained.

This shared interest in poker opened up conversations that eventually led to the founding of Sportpesa.

Karauri’s involvement in Sportpesa wasn’t immediate. As he recounted, “That’s when the conversation started because he [a friend] said he was going to start a sports betting firm. I took an interest in it and said I’m going to be part of it. That’s actually how it started.”

To invest in the fledgling company, Karauri sold a piece of land for Sh25 million, a decision that required considerable discussion within his family.

“Of course, it was a big conversation with my family, but it was a matter of trust and nothing else. I don’t think I shared too much of what was going on,” he admitted.

Sportpesa’s innovation in using SMS for betting was groundbreaking at the time. “When we did SMS betting, it had never happened anywhere in the world. Back in 2015, apps weren’t as big as they are now. Not everyone had data or a smartphone,” Karauri said, stressing how the company made betting accessible to millions.

Despite being a part-owner of Sportpesa, Karauri continued his career as a Kenya Airways pilot during the company’s early days.

"Sportpesa was up and running for a year and a half while I was still a pilot. I wasn’t involved in the day-to-day operations at all, I just received the updates," he explained.

However, things changed when his business partners asked him to take on a more active role in the company. After weighing his options, he decided to resign from his job as a pilot to focus on running Sportpesa full-time.

Reflecting on his decision to leave his aviation career, Karauri said, "My experience in business up until that time was that I needed to be there."