Betting firms should diversify sponsorship of sports
Sports betting industry is arguably among the fastest growing sectors in the world. The growth can be attributed to the fanatical sports following from different age groups and financial gains associated with betting.
In Kenya, the gaming market was worth slightly over Sh4 billion as of 2020. Despite the global Covid pandemic, the sector continued to grow. In terms of market share, Kenya currently ranks third in sub-Saharan Africa (after South Africa and Nigeria), but still tops the continent in number of gamblers.
Kenya’s unique position is buttressed by the high Internet penetration rate (at 43 per cent). In addition, most of the country’s transactions have been digitalised, paving the way for bettors to carry on their activities from mobile devices.
Mobile money services have also been a major driver of growth. According to Safaricom’s results for the financial year ending in March 2022, Kenyans spent Sh169.1 billion to place bets through M-Pesa, underlining the gaming craze that has become a national pastime.
There is no denying the African gaming market is dominated by sports betting. In Kenya, there are nearly 30 licenced sportsbooks.
In their quest to attract new customers, sports betting companies have been engaged in sponsoring sports events. This, combined with the digital revolution transforming the world every second, the sports betting market growth will continue into the future, buoyed by the introduction of gambling through SMS and the Internet, which has enabled gamers to access bets anywhere anytime and at their own convenience.
With most betting firms concentrating largely on football sponsorship, other sports continue to lag behind and it is for this reason that certain industry players are now shifting attention to sponsorship and nurturing of talents in other sporting activities, as well as venturing into Corporate Social Responsibility programmes.
For instance, Mozzart Bet recently sponsored to the tune of Sh3 million the second Nandi Road Race geared towards environmental conservation and restoration of the county’s shrinking water towers and wetlands. The organisation is also the official sponsor of Kenyan Premier League side Kakamega Homeboyz for the second consecutive year.
In a similar move, the government is also shifting attention by disbursing gaming proceeds to other sporting activities. The World Rally Championships, for instance, was one of the biggest beneficiaries of the Sh30.3 billion collected from gamers by the Sports, Arts and Social Development Fund. On that front, Mozzart also sponsored premier local driver Issa Amwari for the rallies.
The fund, whose main source of revenue is betting, gaming and lotteries, was established to offer support to sports federations, training and development of sports, culture and arts. According to Sports CS Amina Mohamed, as of last October, the fund had collected Sh30.3 billion since its inception and disbursed Sh7 billion to the Ministry of Health for Universal Health Coverage.
Part of the money was also spent to host or participate in major international championships including regional, continental and world championships as well as Commonwealth, Olympic Games, Paralympics and Deaflympics.
Whereas the financial contributions of betting companies to African football over the years can’t be underestimated, the focus should now shift to other sporting activities and CSR programmes that benefit the community as a whole. This may just be one way of assuaging the regulators and tax authorities that are often at loggerheads with betting companies.
— The writer is Head of Coaches Nairobi West sub-branch
