BETTING KENYA How betting ban left Sh1.9bn hole in Safaricom profits 2 years ago Iwo Bulski Post Views: 405 Safaricom’s net profit for the full year that ended in March jumped 19.54 percent to Sh74.7 billion on strong M-Pesa and mobile data revenue growth, but the telco also lost Sh1.9 billion in revenues after the government banned sports betting last year. The stringent rules imposed last year on betting activities hurt Safaricom’s revenue with the loss of betting, which represented a negative 32.8 percent change when compared to the previous year. The company’s earnings growth was driven by higher sales, reduced costs and one-off gains from the acquisition of M-Pesa, its mobile money service brand, which is also its second-largest revenue stream. Apart from losing to the betting revenue, the company will also see the lose more money foregoing about Sh5.5 billion in revenue from M-Pesa after it removed charges on small transfers, to facilitate cashless transactions and help slow the spread of the coronavirus. Waiver of sending charges The company made Sh84 billion from M-Pesa in the 2019/20 financial year. This is against another Sh600 million revenue loss due to waiver of sending charges on transaction amounts of less than Sh1,000. In 2019, after six months of push-and-pull between the Kenyan government and betting firms, the State struck at the heart of the firms’ operations, ordering telcos to shut down their pay bill numbers and shortcodes of 27 companies, some whose licences are yet to be renewed. Some of the big names in sports betting in Kenya include SportPesa, Betin and Betway. Others are Betpawa, Premierbet, Lucky 2 U, 1XBet, Mozzartbet, Dafabet, World Sport Bet, Atari Gaming, Palmsbet and Bet Boss. Others are Betyetu, Elitebet, Bungabet, Cysabet, Nestbet, Easybet, Kick Off, Millionaire Sports Bet, Kenya Sports Bet and Eastleighbet. The betting industry in Kenya depends almost entirely on mobile money transactions by gamblers. To place bets, gamblers load money into virtual wallets run by mobile companies. Those who win also collect their winnings through the same wallets, unless the amount won is so big that the payment has to be made in a cheque. Source: nairobinews.nation.co.ke About Post Author Iwo Bulski Issues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge. See author's posts Iwo BulskiIssues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge. Facebook Twitter LinkedIn Email Print Tags: betting, M-pesa, Safaricom Continue Reading Previous 3 Survival Ways for Bookmakers in Africa to Pull Through Covid-19 PandemicNext Kenya: illegal betting machines found, deported owners from China More Stories BETTING KENYA Gambling operators ignore orders to close during the election 1 day ago Iwo Bulski BETTING GHANA Ghana: Gaming Commission Must Regulate Industry 2 days ago Szarlot BETTING KENYA Kenyans spend over KSh 300b on bets, cigarettes and liquor yearly 2 days ago Szarlot BETTING NIGERIA All About Cricket Betting 3 days ago Iwo Bulski EXPERTS KENYA Poor tax policy erodes Kenya’s investor attractiveness – survey 3 days ago Szarlot BETTING KENYA Kenyan government orders all operators to close for election day 3 days ago Iwo Bulski BETTING KENYA The government should work with the betting industry 2 weeks ago Iwo Bulski KENYA ONLINE The influencers paid to push hashtags 2 weeks ago Iwo Bulski BETTING KENYA Eighteen new firms enter booming betting arena 2 weeks ago Iwo Bulski EXPERTS KENYA Kenya launches AML probe focusing on betting operations 2 weeks ago Iwo Bulski EXPERTS KENYA Digital scams have hit Kenya’s gambling and travel industry 2 weeks ago Samuel BETTING KENYA Tanzania joins Kenya, Uganda tax squeeze on gamblers’ winnings 2 weeks ago Iwo Bulski Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.