  Mobile phone-based sports betting has exploded in popularity in many African
countries. Commentators worry that low-ability gamblers will not learn from
experience, and may rely on debt to gamble. Using data on financial
transactions for over 50 000 Kenyan smartphone users, we find that gamblers do
learn from experience. Gamblers are less likely to bet following poor results
and more likely to bet following good results. The reaction to positive and
negative feedback is of equal magnitude and is consistent with a model of
Bayesian updating. Using an instrumental variables strategy, we find no
evidence that increased gambling leads to increased debt.
