SportPesa Set To Be Listed At The NSE In 2019: Is It A Good Move?

Kenya’s largest online betting firm, SportPesa is set to be listed at the Nairobi Securities Exchange (NSE) by early 2019.

According to information on Bloomberg, SportPesa is already in the process of examining listing opportunities and has hired Kestrel Capital to help them out.

The unconfirmed announcement comes two years after in 2016 the firm indicated that it was looking at listing at the NSE in 2018.

SportPesa is the top largest betting company in Kenya in terms of revenue. Its revenue stands at 43,162,779,684 shillings followed by Betin with 3,478,485,336 shillings. The company controls 76.4 percent of Kenya’s market share.

Other betting firms that have been competing against SportPesa include:

1. Betin – Ksh 3.48 billion
2. Lotto – Ksh 1.80 billion
3. Betway – Ksh 1.39 billion
4. Elitebet – 1.32 billion
5. mCheza – Ksh 549.28 million
6. BetYetu – Ksh 419.30 million
7. JustBet – 315.27 million
8. Betika – 65.23 million

The listing of SporPesa comes at a time that the betting business has taken root in Kenya with at one time giving the country a new name of the ‘gambling nation.’ The government has since imposed a tax of 15 percent on revenue of betting firms and a tax of 20 percent on every win from individuals.

SportPesa landed in Kenya in 2014 and has been spreading its wings ever since. The firm now has roots in Tanzania, South Africa, Italy, and the United Kingdom and has partnered with numerous international clubs among them Hull City, Southampton, Arsenal and Everton.

SportPesa is owned by five Kenyans, three Bulgarians and one American and has been instrumental in supporting local teams in Kenya including Gor Mahia and the AFC Leopards.

Economic analysts see the rush to list at NSE by the firm as misplaced and one that might see it witness a dip in its earnings. Many, however, feel that it is a good move given the amount that the company makes annually.