The craze called Sports Betting

[Empedocles]

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In 2006/7, I watched aghast as people I once thought were, well, at least semi-rational threw all their life savings to companies such as DECI, CLIP, etc, all which ended up taking billions from people and massively enriching a select few.

Today, I stand here watching as people are dumping billions (yes, billions) into sports betting companies, led by the grandfather of them all, Sportspesa (registered 2013). Even people I long knew never had an interest in sports whatsoever are now sprouting statistics like pros, all so they can bet. Don't get me wrong, I really don't have anything against sports betting for fun. But what I see here is a means to riches, making tons of money with a "small" investment starting from KShs.100.00. I mean, how hard can that be?

The betting companies are very clever, posting large winners prominently in the media, driving even more desperate Kenyans to throw their last remaining coins at them. The Facebook group Sports Pesa Bet Prediction already has a staggering 120k members, with hundreds joining each week.

In between, far and wide, we have others trying to explain the dangers of the betting craze:

In effect, the craze is now directly affecting our economy.

http://citizentv.co.ke/sports/sports-betting-craze-part-1-kenya-taken-by-storm-119772/

What we are see here now is another major transfer of wealth from the poor to a few elite (Julie Guchuru recently launched mCheza). Like with the so-called investment companies (Ponzi schemes), wanainchi are dumping in much more than they can afford to lose.

[RV Pundit]

Yeah that the situation now. Best thing the gov can do is tax these money heavily. The economy can benefit from all these fools. I am sure treasury has it eyes trained on these disposal billions that people are betting.

[Omollo]

It will wane in time and once people come to realize that the odds are against them. However by then a large number of addicts would have sold their homes, starved their families and stolen from employers. These will need treatment to kick the addiction.

I think the government did not seriously consider the open and hidden costs of gambling before licensing Julie Gichuru and company to spread gambling in Kenya. Before you say it I have always thought Julie Gichuru was shallow. After all the talk in an accent nobody can pinpoint the origin and belonging of, she goes on to spread addiction. Kajinga should have stayed on TV to continue asking and answering her own questions as usual

[Nefertiti]

I do hope the government chops off the tax from the winnings VAT-style. Sportpesa like normal business has to pay corporate tax. For government these taxable transactions are good. We shouldn't criminalize gambling just like stock and land speculation otherwise you have to micromanage all kinds of business. If I invent a magical talisman that makes people clever and people buy in droves, that is simply smart marketing. Buyers can sue me if they feel conned.

Yeah that the situation now. Best thing the gov can do is tax these money heavily. The economy can benefit from all these fools. I am sure treasury has it eyes trained on these disposal billions that people are betting.

[RV Pundit]

Yeah gov get to eat the m-pesa fee but knowing this is money for speculation; I'd propose VAT for every transaction--whether won or not--and further 50% of the winning.This the same punitive tax beer & cigarrette have to pay.

I do hope the government chops off the tax from the winnings VAT-style. Sportpesa like normal business has to pay corporate tax. For government these taxable transactions are good. We shouldn't criminalize gambling just like stock and land speculation otherwise you have to micromanage all kinds of business. If I invent a magical talisman that makes people clever and people buy in droves, that is simply smart marketing. Buyers can sue me if they feel conned.

[Georgesoros]

People gamble all the time.
Let people gamble.
Then join gamblers anonymous after being addicted.