How to start a betting company in Kenya? 

Sports betting has become a remarkable phenomenon in the Kenyan market. According to Statista, the Kenyan online gambling market is expected to grow at an annual rate of 6.38%, resulting in a market volume projection of $53.74 million by 2029. This clearly indicates that the gambling business might be a lucrative venture for you as an investor.  

But, how do you get into this business? Here is a step-by-step guide.  

Requirement when starting a betting company in Kenya 

The betting industry is regulated by the Betting Control and Licensing Board (BCLB) of Kenya. This is a government body under the Ministry of Interior and National Administration that provides directives on what you need to start and run a betting company. 

According to BCLB, here is what you need to successfully start a betting company 

Register the betting company 

You must first register your business as a limited company or a corporation. Start by doing some name research and picking a suitable one. For registration, BCLB will need you to provide the following: 

• draft a plan showing how the business is to operate, including all sources of funding,
• full names, addresses and certificates of good conduct of the directors alongside their KRA PINS and tax compliance certificates,
• a physical address,
• statement on how the company will regulate excessive play and underage participation and fill out the Probity form of due diligence,
• a statement for the dispute resolution procedure and proposed terms and conditions of the to-be company,
• declare a company that will supply odds.  

Once you have the following, proceed to download the registration form for bookmarkers, fill it out, and submit it along with the other documents for registration. Remember that at this stage, you will have to pay KSH. 10,650 to have your comonay registered.  

A gambling licence 

With the business registered, it is time to get a permit. Note that to obtain a license from BCLB, you will need all the requirements listed at the company registration stage. The extras that BCLB will want to provide are: 

• an application fee of Kshs. 10,000 and the investigation fee of KSHS. 50,000, and (Foreign Director)- Kshs. 500,000. Note that these charges are non-refundable,
• License grant fee of Kshs. 200,000.

Upon successful application and issuance of the license, you must get your business operational within six months. BCLB will require you to provide evidence demonstrating the business activities and milestones achieved so far. 

Security deposit 

A security deposit is the amount you need to pay the licensing board to show the ability of successfully run the betting business. You should demonstrate the ability to pay the following fees: 

• License and premises renewal fee of Kshs. 5,000 each 
• An annual license fee of Kshs. 50,000 
• Premises grant fee of Kshs. 100,000 
• Premises annual fee of Kshs. 50,000 

You can pay this fee by depositing Kshs. 100,000 and making the rest of payments in monthly instalments. 

A professional iGaming software 

These are companies that are technology experts. They help you engage bettors by setting up the sportsbook and keeping it running.  

They can help you create web applications from scratch, offer back-end office developments and anti-fraud systems, develops games, ensure regulatory compliance, and process payments.  

In short, professional iGaming software will routinely update your bookmarker’s information on live playing games, recently finished games and even upcoming events. It can provide markets and odds based on the game’s past results.  

A dedicated server 

Although the gaming software will manage your bookmarks, you’ll still need a web host. It is important that you choose a dedicated server that can ensure your bookmarks remain competitive in the industry. It should offer high software performance with fast loading times, smooth gameplay, reliability, security, and scalability.  

A merchant account 

This is like a payment processor for your betting platform. It allows you to accept and process electronic payments quickly and in a secure manner. 

Several options are available in Kenya, including platforms like M-Pesa and Airtel Money and online payment processors like PayPal and Stripe. As you will be handling sensitive information, ensure that the merchant account you create is with a reliable and secure payment processor. Also, consider your payment processor’s fees, which can greatly impact your profitability.  

Testing most of the existing betting sites to know the competition 

With the business set up, it is now time to keep it operational. This means staying updated with what other betting sites are doing analyzing market trends, technological advancements, and regulatory changes. 

You can try out established betting sites like SportPesa, Betika, and Betway. Check out their sports offers, markets and odds. Try betting on the sites to get firsthand experience with their customer support, payment methods and procedures, and other offers. You can then implement what they are doing well to your platform. However, remember to create your own brand and find a way to be unique in the industry.   

Cost of starting a betting company in Kenya 

The costs of starting a betting company in Kenya are mainly at the registration and license issuance stage. However, later costs, like working with professional iGaming software and using a web host server, will mainly depend on your provider. 

The basic known costs for licensing and registration are as shown below: 

Note that the cost above applies only if you are a Kenyan citizen looking to start a betting company. If you are a foreigner, you will need to pay a total of Kshs. 925,650 for the business registration and licensing.  

Before you venture into this business, remember to add the costs of iGaming software and a dedicated server. Do thorough research online, look at the options available, and choose the services that satisfy your budget and needs.  

Good luck with your start-up!