International lottery and gaming operator Tenlot Group has acquired an 85 per cent stake in Kenya Charity Sweepstake (KSC), the country’s oldest public lottery. KSC was established in Kenya in 1966 with the aim of helping to alleviate poverty and to provide financial support to social causes.
The acquisition is meant to take advantage of a growing gaming culture in Kenya that has blossomed in the last five years. The country has seen the entry of international betting companies leading to the government coming up with tough measures to rein on them.
KCS has built a magnificent national gaming infrastructure, in a market with potential of US$500 million, which Tenlot will be able to transform into a force multiplier for progress. Since its establishment, other lottery companies have come and overtaken its influence.
The London based company is planning on using the existence use of electronic payment especially MPesa payment method to boost trading.
Tenlot added, “Electronic money transfers are as common as sending a text message in most countries. We will leverage this vehicle, while adding innovations to lotteries and gaming, and expect that Kenya will quickly emerge as a showcase for other global markets.”
KCS beneficiaries include thousands of schools, health care programs throughout the country, the Beyond Zero campaign to help reduce child mortality and the spread of infectious diseases, and projects dedicated to the rehabilitation of tens of thousands of street children.
In the past, there has been contention on the ownership of the organisation in which both the government and the private sector claimed ownership.
UK based CellCast consulting has warned that its entire overseas operations will be affected by the latest move as its single client is a betting company based in Kenya.
In a statement, the company has noted that the impact of the new directive by BCLB on Cellcast’s overseas consulting services is not clear.
“Such restrictions, were they to be implemented, could impact Cellcast and the sustainability of its overseas consultancy revenues, as Cellcast provides services, with a focus on Kenya, to clients trading in this sector.”
In its 2018 annual report, the Company’s revenues for its overseas lottery and gaming consultancy services were impacted in 2018 due to the adverse effect of a new taxation rate on the business of the Company’s clients in Kenya.