Kenya's gambling craze - what the numbers say

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That Kenya’s pervasive gambling craze has reached critical levels is not in question if the heavy toll it’s taking, particularly on the youth, is anything to go by.

The overall scale of gambling in Kenya remains substantial, with data showing that the habit has mutated into a significant economic activity in the country despite increased taxation and regulatory efforts.

The excise duty on betting amounts increased from 7.5 per cent to 12.5 per cent from July 2023.

Whereas the period between 2019 to 2021 demonstrated a perception shift, with the proportion of adults considering gambling a reliable income source declining from 22.7 per cent to 11.2 per cent respectively, the picture among younger gamblers is worrying.

THE DATA

Data shows that individuals aged 18–25 are the most active gamblers, with 13.4 per cent viewing gambling as a potential income source.

While regulatory measures appear to have influenced individual spending habits of a section of this lot, the overall scope of gambling remains significant, necessitating ongoing regulation efforts.

Statistics from various sources highlight that the massive scale of gambling activities in Kenya have grown to, with the daily expenditure rivaling major economic sectors.

Data from the government shows that Kenyans collectively spend approximately Sh242 million daily on gambling, primarily through online betting platforms.

This, going by the Kenya Revenue Authority (KRA) report that between July 2022 and June 2023, the total online wagers amounted to Sh88.5 billion, a figure corroborated by excise duty collections of Sh6.64 billion realised during the period under review.

When broken down, the Sh242 million daily gambling expenditure translates to Sh10.1 million per hour, Sh168,333 per minute, and Sh2,806 per second.

The 2024 FinAccess Household Survey provides further insights into gambling behaviours across different demographics in Kenya, with the average weekly spend per gambler standing at Sh1,825.

The insights point to a worsening trend, considering the average weekly individual gambling expenditures had decreased from Sh2,559 in 2019 to Sh939 in 2021 in response to increased regulatory policies.

The FinAccess survey shows that gamblers residing in urban areas spend more on average (Sh2,125) compared to their counterparts in rural areas, who part with Sh1,481. In terms of gender, data shows that male gamblers spend an average of Sh1,876, compared to females whose average is Sh1,623.

HIGHLY ADDICTIVE

The majority of the gamblers are jobless, and some have gone to extreme lengths to sustain the habit, including borrowing from online mobile lenders. Gambling can be highly addictive due to a combination of psychological, neurological, and behavioural factors.

Gambling activates the brain's reward system, particularly the release of dopamine, a neurotransmitter associated with pleasure. Interestingly, dopamine is released not just when you win, but also in anticipation of a win or during near misses, making the act of gambling itself stimulating and rewarding.

However, the aspect of "chasing losses” is perhaps the biggest motivating factor that keeps most gamblers hooked on continued wagering.

When people lose money, they often feel compelled to keep gambling to recover losses, often leading to mounting losses and debt, which has in some instances, pushed some gamblers into suicide.

Furthermore, many gamblers believe they can influence the outcome through skill, rituals, or patterns—even in games of pure chance.

This illusion can drive continued play, especially after a loss, often in the false hope that the next win could just be one more bet away.

Among a select group of individuals, gambling is viewed as a coping mechanism for stress, depression, anxiety, or boredom.

For some, it becomes a way to escape reality or difficult emotions, reinforcing the behaviour even when it causes harm.

The convenience of mobile and online gambling, catalysed by advertisements and peer influence, adds to the problem by creating a stimulating environment that can trigger urges to gamble.

In an apparent response to growing public concern, the Betting Control and Licensing Board (BCLB) on Tuesday suspended gambling advertisements across all media platforms for 30 days, effective immediately.

The ban covers radio and TV ads, social media, newspapers, billboards, SMS, email campaigns, and celebrity or influencer promotions.

BCLB said some promoters have been presenting gambling as a fast path to wealth, drawing in vulnerable groups, including minors.

“Some gambling promoters are increasingly mischaracterising gambling as a legitimate investment opportunity and a shortcut to wealth creation,” chairperson Jane Mwikali said.

Consequently, the licensing board established a multi-agency enforcement team to strengthen responsible gambling practices nationwide as more youth continue to embrace the habit with devastating consequences.

The team comprises key institutions, including the Ministry of Interior and National Administration and the Office of the Attorney General.

To complement the crackdown on irresponsible gambling amongst Kenyan youth, the Kenya Film Classification Board (KFCB) almost immediately asked gambling companies to acquire filming licenses for their recorded audiovisual advertisements.

KFCB acting CEO Pascal Opiyo asked the companies to submit the said advertisements to the board for classification and issuance of a Certificate of Approval via the TMS.

He directed media companies not to air unclassified gambling advertisements on their platforms in line with the Films and Stage Plays Act, Cap 222 of the Laws of Kenya.