Virtual sports overtake horse racing in East Africa’s betting market
The rise of virtual sports betting is fuelled by mobile phones and mobile payment systems, allowing bets at any time without relying on traditional schedules.
Kenya.- In East Africa, revenues from virtual sports betting have surpassed those from traditional horse racing, as punters increasingly shift to digital platforms offering faster games, lower entry costs and round-the-clock access.
Industry providers such as Golden Race report that virtual simulations, including football, generate higher turnover than the region’s limited live racing events.
Golden Race handled eight out of ten virtual bets across Africa in 2018, totaling nearly 3.5 billion tickets. Horse racing, mainly at venues like Kenya’s Ngong Racecourse, operates on a smaller scale. Monthly maintenance costs for owners there average around KSh40,000 (about €280) per horse, while prize money per race stands at KSh60,000 (about €420).
Ngong remains the only thoroughbred track in Kenya and hosts regular meetings (around 25 per year), but the sport lacks the widespread infrastructure found in other parts of Africa. Annual revenues from horse racing betting at Ngong are estimated to be well below US$5m (€4.6m), based on limited event frequency, small prize pools and niche participation.
Operators including Betway and SportyBet have expanded their apps to feature virtual sports. In Tanzania, a market with steadily rising gambling activity, these products are driving growth in the online sector. Online sports betting is projected at around US$9.8m (€9.1m) in 2025, with overall igaming (including virtual elements) expected to reach about US$7.37m (€6.8m) in some forecasts for the year, growing toward US$11m–15m later in the decade.
Kenyan bettors staked KSh88.5bn (€619.5m) online in the year ending June 2023, generating KSh6.6bn (€46.2m) in excise taxes for the government. For many young Kenyans, who spend an average of KSh1,550 (about €10.85) per month on bets, virtual sports provides quick entertainment linked to familiar games like football.
The rise of virtual sports betting is fuelled by mobile phones and payment systems like M-Pesa, allowing bets at any time without relying on traditional schedules. In Kenya, about 50 per cent of young adults participate, often placing small, quick wagers on games that last only minutes.
Martin Wachter, CEO of Golden Race, explained the demand, saying: “Virtual sports is extremely high [in demand]. It’s the only continent where betting shops open because they want to have the virtuals.” He added that in Africa, virtual products account for the largest share of betting income, ahead of casino games and traditional sports.
Dolan Beuthin, CEO of BetMonsta, said: “The biggest money spinner in Africa is virtuals. Forget about casino and sports.”
