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How best can Kenya regulate online sports betting? Is it through shutting them down abruptly? Let us have a sober discussion about this subject. Currently, people are just driven by emotions with a mob justice mentality.
Kenya cannot purport to be running away from online betting. That is like trying to run away from technology and change. With the explosion in smartphones and the internet, Kenyans gamers can access different betting sites by the click of the button both within and without Kenya.
We are not having a sober discussion about betting. Some are talking about tax compliance while some are talking about its moral effects. Those supposed to have a sober discussion are being driven by emotions and not logic thinking. Should we regulate betting by taxing them more?
There is a need to understand that accounting in the gambling industry is different. Gross Gaming Revenue/Gross Gambling Revenue(GGR) and not the total amount of bets collected is the determinant financial index upon which gambling tax is charged on. Many are unaware of this fact
GGR is calculated as the difference between the total sum of all bet/wagers and the total payouts of wins. This is closely analogous to Mpesa where trillions of shillings go through its platform, but revenue comes from what Safaricom collects as money transfer fees!
Allow me to bring in the issue of SportPesa because it is the only one that has released the numbers. People claim that the company made more than it claims. I look at the sentiments and just laugh. People don't understand bit.ly/30Rkz5K
People say SportPesa made 100 billion shillings. SportPesa says it made 20 billion shillings in REVENUES. For the company to make 20 billion in revenues, it means bets worth 100 billion shillings or more went through the platform. So, do we tax the 100 billion or the 20?
Now, betting immoral? Are we being hypocrites for wanting to ban betting on the account of it being "immoral"? Before you take me to the court of moralists, I have a few questions that we can think about it. Follow this #thread bit.ly/30Rkz5K
If betting is immoral, then alcohol is worse. We should then close down all those manufacturing and selling alcohol. If betting is immoral, then corruption should not be a subject of discussion now. We should shut down the whole government because it is too corrupt to rule.
How can you license casinos and close down online betting because it is immoral? How can you license charity sweepstakes and ban online betting because it is immoral? What did we use to measure the immorality in online betting? bit.ly/30Rkz5K
You can now throw those stones. Let them come but at the end of the day, we need sober discussion.
