The Kenyan gambling industry is no stranger to controversy, and it looks set for another round of turbulence with the Gambling Control Bill.
The National Assembly passed the Bill in December 2023 but has since been met by some resistance in the Senate, with legislators arguing for and against some of the proposals set out in the document.
The bill proposes sweeping changes to the industry, with far-reaching consequences for gambling operators, bettors and even the regulatory authorities in the country. The general feeling amongst observers and betting stakeholders is that this bill is another attempt to further clamp down on betting operators.
“Never a dull moment in the Kenyan gaming industry, is there?”, quipped online betting expert, David Mwangi, editor-in-chief at Kenya’s leading online gambling affiliate site, mybettingsites.com/ke.
“I understand the need to clean up and sanitize the industry, but I feel some of the proposals are quite harsh on the companies and could result in a few more operators leaving the market”, he continued.
Among the major talking points is establishing the Gambling Regulatory Authority, which would take over the regulation and licensing of the industry from the Betting Control and Licensing Board (BCLB). It also aims to increase the Minimum Capital Deposit required from operators to KSh. 200 million, up from KSh. 20 million.
The move to sharply increase the minimum capital deposit was unsurprisingly a sticking point in the parliamentary session in May 2024, with Nairobi senator, Edwin Sifuna, arguing that setting the bar so high would keep out local investors, and restrict the industry to just a handful of operators who are solvent enough to afford the fee.
On the other hand, Senator Aaron Cheruyiot swiftly pointed out that increasing the Minimum Capital Deposit would eliminate half-baked operators from the industry and limit the chances of exploiting Kenyan bettors.
The arguments from both sides are quite compelling. As much as Kenya wants to eke out as much revenue as possible from the lucrative gambling industry, the government also has a responsibility to protect its citizens from gambling malpractices. There have been cases of bettors not being paid their winnings simply because the operator could not afford it.
The minimum capital is not the only aspect of the proposals that directly affect operators. The bill also compels gambling companies to do their banking with a Kenyan bank, with at least 30% of their shares being owned by locals.
The good old taxation has unsurprisingly not been left out, with the new bill proposing a 15% monthly tax on gross gambling revenue, up from the current 7.5%. Local counties will also be empowered to charge monthly taxes.
Effectively, this is Kenya looking to put another squeeze on gambling operators. Within the last decade, there has been a long-running battle between Kenyan authorities and gaming companies, with taxation often at the forefront of the agenda.
Kenya has never been afraid to flex its muscles and stand its ground in this contest, with some heavyweight companies like SportPesa, Betin, and Betway forced to quit the country over challenging tax requirements. SportPesa has since reached a compromise and made its way back, but Betin and Betway look to be gone for good.
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Away from the betting companies and regulators, the actual bettors themselves also get plenty of mentions on the Bill. The overarching theme of the proposals is to further protect Kenyan citizens from the dangers of gambling by eliminating underage gambling, exploitation and addiction.
However, there is an interesting part of the proposal that aims to reduce the minimum wagering amount from KSh. 20 to KSh. 1.
This has been another point of debate in the parliamentary sessions, with supporters of that particular motion arguing that lowering the minimum stake would make gambling more accessible to everyone, regardless of their financial status.
Opposing voices, led by Cheruyiot, strongly condemned the suggestion, saying limiting the wagering amount would make gambling accessible to kids and school children who can easily afford KSh. 1.
And he makes a good point, because Kenya has in recent years had the highest number of young gamblers within sub-Saharan Africa. Lowering the minimum wagering amount would only shoot up that number.
The bill is set for more debates and discussions in the coming weeks and months, with many other talking points like gambling advertisements, license duration, and more on the agenda.
