Kenya is considering a significant overhaul of its gambling law. A wide-ranging proposal being considered by the Kenyan National Assembly could potentially lead to a complete revamp of how online betting operators are licensed and regulated, re-regulation of land-based gambling options and the establishment of a national lottery.

1. Gambling Laws In Kenya Covid 19
2. What Is The Law On Gambling
3. How To Stop Illegal Gambling
4. Gambling Laws In Kentucky
5. Gambling Laws In Kenya Government

The Gaming Bill, 2019 sits in the National Assembly now and is slated to be debated later this week. If the bill is signed into law, Kenya’s gambling landscape will be undergoing major changes in the near future.

Looking at the Gaming Bill of 2019

• The Republic of Kenya has legalised gambling under the Betting, Lotteries and Gaming Act (BLGA) 1966. But only locally licensed operators can provide services to Kenyans under this legislation. This means a sports book, lottery company or casino must have a license from the Betting Control and Licensing Board – set up under the BLGA – in order to legally operate and provide its services to Kenyan gamblers.
• Q&A: Gambling Regulation in Kenya A new Gaming Act is currently pending before the Kenyan parliament, which would replace the current legislation dating back to 1966.

Seven major proposals are included in the bill:

Gaming Regulation in Kenya Gaming regulations continue to change in order for governments to be able to capitalise on growing revenue potential. Although the legislative systems in Africa have really gotten a bad reputation over the years, it appears that the Betting Control and Licensing Board of Kenya is the exception to the rule.

• The establishment of a new regulatory authority
• The establishment of a Gaming Appeals Tribunal
• The creation of a national lottery
• Licensing and regulating foreign online gambling operators
• Significant increase in licensing fees
• Reduced betting limits
• New restrictions on gambling advertising

Now, let’s take a look at the changes being considered in each of these areas.

New Gambling Regulatory Authority

The new Gaming Bill 2019 proposes to replace the Betting Control and Licensing Board with the National Gaming Authority to oversee the gambling industry, enforce gaming law and issue gambling licenses to operators.

Gaming Appeals Tribunal

A new tribunal will be set up to address all matters related to gambling disputes in Kenya.

Kenya’s First National Lottery

Gambling Laws In Kenya Covid 19

If the bill passes into law, Kenya will establish its first national lottery. A tender process will be held to determine the operator of this lottery. The successful operator will be offered an operating license for seven years.

The aim of the new lottery will be to raise funds for good causes related to Kenyan sports. 15% of all revenue generated by the lottery will be given to this cause. 20% of the revenue will be used to pay the administrative costs and 20% will be distributed to lottery agents and retailers. All remaining revenue (45%) will be distributed among lottery winners as prizes.

The Gaming Bill will also create the National Lottery Trust Fund which will be tasked with distributing money raised for charitable causes.

Regulating Foreign Gambling Operators

Under the proposed gaming law, foreign operators will be permitted to apply for licenses to launch betting sites in Kenya. These operators will be required to pay licensing fees, establish a physical presence in Kenya and base their servers in-country.

Early speculation is that these requirements will result in foreign gaming companies forging partnerships with local casinos and operators for market access.

Operators will Pay Higher License Fees

Anyone seeking a gambling license to offer their services in the Kenyan market will face significantly higher license fees.

• Online gambling operators– A three year license will cost KES 100 million (nearly $1 million). A renewal fee will cost KES 30 million.
• Casinos and gaming halls in Kenya– A license fee will cost KES 50 million. A renewal fee costs KES 30 million. The Betting and Licensing Control Board currently charges operators KES 1 million to apply for a license, followed by a KES 3 license fee and a KES 25,000 renew permit.
• Land-based bookies– License fees will cost KES 30 million, with renewal charges set at KES 5 million after three years. Bookmakers are currently charged a KES 10 million application fee and a KES 200,000 license fee to offer on or off-course betting. Bookies can also buy a dual license for KES 400K.

Betting Limits in Kenya

The new gaming bill hopes to reach a consensus on the minimum amount that players can bet. SportPesa currently asks players for a minimum of KES 100. The government wants to halve that amount to KES 50.

Gambling Advertising in Kenya

Stricter controls will be leveraged on gambling advertising. Some of the issues proposed:

• Gambling ads will be banned between 6 am and 10 pm. (An exception to this rule will be during live sports broadcasts).
• Gambling ads being broadcast on TV or the radio will need to have at least 10% of their airtime dedicated to responsible gambling messages.
• A new Gambling Advertisement Tax will be imposed: A 35% tax will be slapped on each gambling ad that is broadcast. It is not yet clear who will bear the brunt of this new tax – the broadcaster or the operators.

Earlier this year, the Betting Control and Licensing Board sought to block celebrities from participating in gambling ads and promotions. The order was challenged in Kenya’s High Court by Kamau Wanjohi, a local gospel singer and activist also known as MC Moreydoc.

Wanjohi contended the new order would severely impact the livelihoods of him and his colleagues, that the term “celebrity” is too vague, and that the public was never asked for feedback prior to the ban.

The order was temporarily suspended by the High Court, but the issue will definitely come up again when the National Assembly deliberates the new law.

Gambling Taxes Will Not Be Addressed

Kenyan National Assembly will not be asked to address the gambling tax rate just yet despite recent controversies regarding the government’s cut.

One of the main reasons for this is that the issue became highly controversial last year when tax levels spiked to 35%. Only after substantial demands by the industry, the rates were reduced to 15%. This number has been retained more or less until now.

Popular Kenyan betting site SportPesa also raised the ire of punters earlier this year when it sought to deduct the 20% gambling tax from customers’ winnings.

One SportPesa customer took such offense to the decision that he took the site to court over a deduction taken from his winnings. The court has issued a temporary halt order preventing SportPesa from deducting taxes from his winnings.

Also in April, Interior Cabinet Secretary Fred Matiang’I told the industry that licenses for all betting firms will be cancelled on July 1^st until all taxes are paid.

What Is The Law On Gambling

Problem Gambling Concerns in Kenya

The government is concerned about the growing number of problem gamblers, especially among the youth – many of whom place their wagers on mobile phones.

Victor Munyaka , Chair of the National Assembly’s Sports, Culture and Tourism Committee, said, “The bill seeks to restrict use of telecommunication platforms as media for gambling in Kenya.”

Cabinet Secretary Fred Matiang’i added this:

How To Stop Illegal Gambling

“We would be lying to you if we do not point out that the Betting Licensing Control regime in our country must change… we are going to turn it inside out.

“We have the unfortunate situation where we in Kenya are leading on the population of our young people are involved in betting.”

While Kenya is finally starting to make some progress in revamping its outdated gambling laws, there are clearly still some big issues regarding taxes and problem gambling that will need to be dealt with sooner or later.

Getting Familiar With Gambling Laws and Regulations in Kenya

The 1966 Betting, Lotteries, and Gaming Act made Kenya one of the first African countries to legalize all types of betting and casino games. Since that time, however, gambling only really took off recently.

With a population of 45 million, Kenya also boasts one of the most advanced economies in Africa. Even with a thriving economy, Kenya remains poor and nearly 20 percent of residents survive on less than $2 per day.

The existing gambling law prohibits underage gambling (individuals younger than 18) but you can buy a lottery ticket if you are at least 16 years old. However, the Kenyan government recently announced plans to enact new laws that would provide more protection for their citizens, especially younger people.

What This Means for Online Gambling

Online Bet service providers such as Bet 254 Kenya are still going to be legal. There is no government law blocking betting sites. The government even recently started to issue licenses to online betting sites. So, it is completely legal to do business with these online gambling sites in Kenya. There are so many of them online that you may find it hard to choose but Bet 254 Kenya ranks high among online users.

Change of Regulators

The new law will also see the Betting and Licensing Control Board replaced with the new regulatory authority, the National Gaming Authority. The Gaming Appeals Tribunal will be established for adjudicating gambling-related disputes.

Establishment of the Lottery System

Besides, the new regulatory framework also targets the creation of the national lottery program, the first-string lottery system in Kenya. Bidders willing to obtain the license to operate the lottery system will require a thorough tender process. In the end, the Kenyan National Lottery Trust Fund through its Lottery agency will issue a seven-year operating license for licensed operators. Meanwhile, winners will only be entitled to 45% of their revenue from the lottery.

Ban on Social Media Ads

Part of the government’s plan is a ban on social media advertisements for betting firms, and also a ban on outdoor adverts of gambling between 6 am and 10 pm. Celebrities will also be prohibited from endorsing gambling activities or services. This means that celebrities like McDonald Mariga and Dennis Oliech can no longer be involved in betting advertisements.

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New Gambling Tax Regime

Gambling Laws In Kenya Government

The new Gambling Act of 2020 will not make gambling illegal. The only changes will be a new 35 percent tax on advertisements, and a rise in the cost of the gambling license for online gambling to one hundred million shillings (approx. 900 EUR) and fifty million for land-based casinos.

Online Gambling

In the same light, the law aims at keeping online gambling legal but regulated. Since the government began to issue licenses to online gambling operators, the number of online betting bookies has spiraled up, offering players a range of options to stake. However, operators are not allowed to offer slot machines to players.