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Kenya to Reimpose 20% Tax on Wagering Stakes

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The Kenyan betting and gaming sector has encountered a major fiscal hurdle, as the country’s government reimposes a 20% tax on wagering stakes as well as doubling its taxation of foreign tech firms.

Publishing the 2022 Finance Bill, the Treasury detailed that the 20% tax rate would be reintroduced, just under two years after it was abandoned in 2020 after substantial criticism from the Kenya Betting Control Board (BCLB).

Described by the BCLB and operators active in Kenya at the time as a “market killer”, the 20% taxation saw several betting firms depart the country such as Betin and SportPesa – exacerbated by an additional 20% tax on player winnings – although brands such as Betsson’s Betsafe have since found success in the market.

Kenya’s Treasury Cabinet Undersecretary Ukur Yatani stated his intent last year to reintroduce the 20% tax rate, and the Finance Bill has been submitted to the Departmental Committee on Finance and National Planning after its first reading.

As well as raising the tax on stakes, the Kenyan Revenue Authority (KRA) has proposed to increase digital tax service (DST) to 3% of the gross value of online transactions in the financial year, seeking to take advantage of an increasingly digitised economy.

The current DST stands at 1.5% and will increase from July onwards. Although predominantly targeting firms such as Amazon and PayPal, the raise could have an added effect on the betting and gaming industry, due to the impact of revenues of solution, software and payments providers.

Kenyan authorities are targeting increased revenue via the tax rate, with the current 1.5% rate currently projected to generate around Sh13.9 billion by June 2024, with the tax levied on digital content provided by international companies such as music, games, films and e-books.

Writing in the Finance Bill 2022, Ukur Yatani explained: “The Third Schedule to the Income Tax Act is amended by deleting the expression ‘one-point-five percent’ appearing in paragraph 12 (digital service tax rate) and substituting.”

Africa

BetConstruct Secures Prestigious Best Online Sportsbook Provider Award at SiGMA Africa 2024

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BetConstruct, a leading force in the online gaming industry, has been awarded the Best Online Sportsbook Provider at the SiGMA Africa Awards 2024. This recognition is a testament to BetConstruct’s commitment to delivering unparalleled sports betting experiences.

The SiGMA Africa Awards 2024 brings together industry leaders and pioneers, recognising those who push the boundaries and contribute significantly to the sector’s advancement.

BetConstruct is transforming the online gaming industry with a focus on customer-centric solutions and consistent excellence. Boasting a wide-ranging portfolio of sports betting and gaming products, BetConstruct is recognised as an essential partner in the global market, dedicated to enhancing both user experience and partner satisfaction. The Best Online Sportsbook Provider award celebrates not just the company’s historical achievements but also its ambitious future endeavours.

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Africa

Next Brazil on the Horizon? SOFTSWISS Unveils South African iGaming Market Overview

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Next Brazil on the Horizon? SOFTSWISS Unveils South African iGaming Market Overview
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South Africa’s iGaming market is on a remarkable growth trajectory, set to reach a total revenue of approximately EUR 64.9 million by 2028. SOFTSWISS, a leading iGaming software provider with 15 years of experience, shares the South African market report at no charge.

In light of the recent acquisition of Turfsport, a leading South African provider of wagering solutions, the SOFTSWISS report offers first-hand practical experience. The piece explores peculiarities distinguishing South Africa, including provincial licensing, sports betting, and gaming preferences.

Provincial Licensing

Online gambling in South Africa is governed by nine provincial regulatory bodies which operate under the National Gambling Board’s framework. Each body is responsible for licensing various gambling activities, including online sports betting, in their provinces. Operators must understand the nuances and explore licensing options within each region’s regulatory framework.

Christian Neuberger, CEO at Turfsport, adds: “While national legislation continues prohibiting interactive gaming nationwide, several provincial gaming boards have taken the initiative in recent years to expand fixed odds betting options. This development has significantly enhanced the appeal of online betting, resulting in a sharp increase in iGaming revenue and the generation of gaming taxes.”

Sports Betting as a Major Driver with High Interest in Esports & Fantasy Sports

Online sports betting remains a major driver of the South African iGaming market. In 2024, this sector’s estimated volume is approximately EUR 24.3 million out of ~EUR 51 million expected for the whole iGaming industry. At the same time, sports betting is experiencing a notable shift in player preferences and market dynamics. For example, the horse racing popularity has decreased slightly, with younger audiences favouring other betting options. However, it remains a valued tradition among older generations and those with discretionary spending power. 

Esports betting and fantasy sports are growing segments within the South African market. According to Statista (2021), 51% of South African survey participants are interested in betting on esports, and 39% express interest in playing fantasy sports for money. In this aspect, South Africa outperforms the United Kingdom, the United States, Brazil, India, Argentina, Mexico and Denmark.

Gaming Preferences

Regarding content preferences, the recent explosive rise of ‘сrash’ games such as Aviator underscores that the South African audience prefers simplicity and instant gratification. However, traditional casino experiences also remain in demand. Operators have responded by adapting conventional online casino game mechanics to comply with existing sports betting regulations. These numbers-style draw games resemble classic casino offerings but adhere to the legal framework as ‘betting events’.

With the increasing mobile internet penetration, more affordable data packages, and widespread smartphone usage, more people in South Africa are turning to mobile gaming. This trend is particularly noteworthy because most of the population may not have regular computer access. Operators should prioritise mobile compatibility and user-friendly interfaces to reach the audience effectively.

Vitali Matsukevich, COO at SOFTSWISS, comments: “Sharing the SOFTSWISS market report, we emphasise our focus on the South African iGaming market’s potential. With SOFTSWISS’ expertise in iGaming and Turfsport’s local market knowledge, we are set to effectively address the specific needs and opportunities in South Africa. The insights from this report are instrumental in guiding our strategies and ensuring that our solutions are well-aligned with the evolving landscape of South African iGaming.”

Overall, the SOFTSWISS market report offers a comprehensive overview of iGaming in South Africa, from the historical context of industry development to a detailed player profile and local trends. 

 

About SOFTSWISS 

SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Casino Platform, Game Aggregator, the Affilka affiliate tracking platform, Sportsbook Platform, and Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

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Africa

SOFTSWISS Takes Responsible Gaming Award at SiGMA Africa

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SOFTSWISS Takes Responsible Gaming Award at SiGMA Africa
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SOFTSWISS, a tech company with over 15+ years of experience in iGaming, celebrates its success at the SiGMA Africa Awards, triumphing in the Responsible Gaming category. 

SOFTSWISS’ ethical philosophy revolves around the “player comes first” principle, meaning the company is committed to responsible gambling practices. This commitment is conveyed through the dedicated departments on two levels, serving the needs of both operators and players.

SOFTSWISS Managed Services stands at the forefront of promoting responsible gaming practices. The department offers a comprehensive range of solutions tailored to act as a reliable bridge between operators and players, guaranteeing a smooth gaming journey. Providing such essential services as First Line Support, Anti-Fraud Support, VIP Player Support, Player Retention and Reactivation, and Content Management, SOFTSWISS Managed Services significantly elevates the growth trajectory of iGaming brands.

During ambiguous situations, dedicated specialists spot technical errors, provide fraud protection for clients, engage with players directly, and find effective resolutions to each unique issue. In 2023, the Anti-Fraud team helped operators save more than 13 million euro. The team effectively handled over 100 thousand different cases and 200 player complaints.

In communication, SOFTSWISS employs a segmented approach, delivering customised content to different player groups and maintaining a personalised send schedule. This strategy minimises unsubscribe rates (around 0.1%) and ensures ethical and friendly communication, fostering a trusting atmosphere with players.

Artyom Rudakov, Head of SOFTSWISS Managed Services, adds: “To make anti-fraud and suspicious activity prevention even more efficient, we are developing a proprietary Risk Scoring Tool, which is set to revolutionise gaming issues identification. The solution does not just analyse but uses machine learning algorithms to intervene proactively, identifying potential problems in real time for a safer gaming environment.”

Constant personnel development and education are a solid basis for ensuring the best industry practices. Over 90% of the Anti-Fraud team hold certificates on responsible gaming from different institutions such as GameCare, Gaming Operations Academy, Sustainable Interaction, and iGaming Academy.

 

About SOFTSWISS 

SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

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