The Kenya Gambling Control Bill 2023, presently under parliamentary scrutiny, is set to revolutionize the gambling industry with comprehensive reforms aimed at enhancing regulation and player protection.
The bill was passed by the National Assembly on December 6, 2023, and referred to the Senate for consideration.
At its core, the bill aims to regulate betting and casinos while making changes to other gambling forms, including public lotteries, prize competitions, and gambling advertisements.
A new gambling regulatory framework
Gambling in Kenya is legal if conducted by operators who are licensed and approved by the government. Both local and overseas online casinos that comply with the government’s requirements can provide their services to Kenyan players.
Currently, Kenya’s gambling, casino, and lottery industries are all governed by the Betting Control and Licensing Board (BCLB).
BCLB grants licenses and offers advice to the public on how to form responsible gaming practices. In regard to regulation policies, one key objective of the bill is to do away with the current betting regulatory framework and replace it with the Gambling Regulatory Authority.
The new authority is set to closely monitor the gambling sector and provide more limitations.
Player protection and responsible gambling
One of the concerns raised is the widespread issue of youth involvement in gambling activities. A GeoPoll survey revealed that almost 84 percent of Kenyan youth have engaged in gambling or betting, hence the urgent need for regulatory intervention.
The government is under pressure to optimize its measures and ensure that the gambling industry operates transparently. Gambling addiction remains a major challenge in the sector.
In order to curb the harmful effects of gambling that have mostly affected the youth, the proposed reforms are set to introduce measures to ban underage gambling and combat illegal gambling practices.
The bill also advocates for restrictions on media promotions, especially on television and radio during specific periods, to protect vulnerable audiences from excessive exposure.
Furthermore, the legislation seeks to put in place a minimum betting threshold to mitigate excessive gambling tendencies. Another clause on the bill is targeted at gambling operators where a contested amendment proposes the minimum capital deposit to be capped at Ksh.200 million up from Ksh.20 million.
The establishment of the Kenya Gambling Control Bill is considered to be an additional tool to combat gambling addiction, increase customer awareness about the problem, and promote responsible gambling.
High Stakes Debates in the Upper House
The gambling and betting bill has been heavily contested ever since its introduction in the Senate. Nairobi Senator Edwin Sifuna, who is against the proposed minimum threshold for capital deposits, argued that the staggering sum of Ksh.200 million only favors the few who are dominant in the market.
He added that the requirement locks out local investors who would like to invest in gambling. On the contrary, the Mover of the Gambling Control Bill 2023 and Leader of the Majority Coalition in the Senate, Aaron Cheruyiot, backed the minimum capital deposit of Ksh.200 million for gaming operators.
He argued that a smaller sum would leave players vulnerable to abuse. “If you make it open to only Ksh.20M then you invite crooks to con Kenyans and disappear with their monies,” he added.
Another controversial clause in the bill suggests the reduction of betting stakes from a minimum of 20 shillings to only 1 shilling. Sifuna defended the clause, saying that all players should be able to enjoy gaming even with as little as one shilling.Cheruiyot, however, made it clear that gambling cannot be made accessible to kids in school. He opposed the removal of the minimum bet amount, arguing that children can get one shilling easily. The Gambling Control Bill 2023 is set to return to the lower house with amendments once voting is concluded in the Senate.
Impact of the bill on the national economy
The bill proposes ownership requirements requiring Kenyan citizens to possess at least 30% of shares in gambling businesses in recognition of the industry’s economic importance.
Moreover, it mandates that these businesses only work with Kenyan financial institutions to carry out their banking operations, supporting the development of the national economy. This requirement is aimed at promoting local participation and ensuring that the economic benefits accrued from gambling are retained within the nation.
According to the bill, fiscal policy involves a substantial tax hike, with the gaming earnings subject to a 15% levy.This is a change from the controversial 7.5% tax rate that was previously implemented. It is expected that the new tax system will support government income sources and promote economic growth on a national scale.
Other key changes proposed in the Gambling Control Bill 2023
- •Extending license validity: Gaming licenses would be valid for periods ranging from one year to three years
- •Cracking down on player eligibility: Registered sports players would be prohibited from gambling
- •Protecting minors: The bill strengthens age verification measures, barring anyone under 18 from gambling activities
- •Enhancing transparency: Gamblers would be required to provide proof of age
- •Streamlining regulations: The Gaming Authority would establish clear registration guidelines
- •Strengthening penalties: Gambling companies face a minimum penalty of Ksh.5 million for violations
