The Betting Control and Licencing Board (BCLB) says it is facing challenges controlling underage betting due to underfunding of its activities by the National Treasury.
The betting regulator says more than 80 per cent of gambling activities in Kenya are online and the lack of adequate funds to deploy new technology has hampered its efforts to protect the young and vulnerable from engaging in gambling.
On Wednesday, BCLB Principal Administrative Secretary Arthur Osiya told the National Assembly’s Committee on Sports and Culture that it cannot effectively monitor and regulate the industry due to failure to deploy adequate technology.
He said controlling the underage from involving themselves in online gambling has remained a major challenge for the BCLB.
"We have faced an uphill task in dealing with the underage in the gambling industry. Most of these young people engage in betting using their parent's mobile phones," Mr Osiya said.
‘’Gambling is addictive and has attracted underage who can be distracted from their education progress.’’
Mr Osiya said BCLB needs Sh500 million to develop, procure and deploy a Gambling Central Monitoring System (GCMS) effective monitoring of the industry.
"It is important to note that more than 80 per cent of gambling activity in Kenya today, just like in many countries, is in the air (online). It is no longer brick and mortar,’’ Mr Osiya said.
‘’Given the scenario therefore, deployment of adequate technology is the only sure way to adequately regulate the industry."
Mr Osiya told lawmakers that the BCLB had managed to fight illegal and unauthorised gambling after the board flagged down 37 unauthorised foreign gambling websites alongside confiscating illegal gambling Chinese slot machines across the country.
"To promote and enhance responsible gaming activities, the board has successfully undertaken sensitisation activities in 12 counties," he added.
He told the committee chaired by Webuye West MP Dan Wanyama that the installation of a new technology will help the board to effectively regulate the gaming industry and guarantee public protection, revenue generation, responsible gambling and investment growth and development of the gaming industry in Kenya.
Mr Osiya decried the inadequate funding of the BCLB operations by the Treasury arguing it has affected the implementation of their activities, leading to low revenue generation.
He said inadequate capacity in staffing, training, tooling and kitting as well as lack of exposure is among institutional challenges facing the BCLB.
Mr Osiya told the committee that despite the underfunding, the board has managed to help the government collect Sh88.4 billion in taxes over the last five years.
The BCLB said the Treasury allocated the board a total of Sh531 million over the past five years for regulation of the betting and gambling industry.
He said the inadequate allocation of funds by the Treasury has affected the implementation of their activities, leading to low revenue generation.
"In the last five years the board was allocated Sh531 million, collected Sh894.6 million in its own source revenue and Sh88.4 billion in taxes," Mr Osiya said.
"This is a confirmation that if we are allocated adequate money, we will be able to effectively discharge our mandate and help the government collect more tax."
Mr Osiya asked the committee to fast-track the enactment of the Gambling Control Bill 2023 which seeks to provide for a strong legal framework for regulation of the industry and guarantee public protection from harmful effects of betting and gambling.
"The current Betting Lotteries and Gaming Act Cap 131 has a lot of loopholes that frustrate the board's efforts to streamline the industry," he said.
Mr Wanyama assured Mr Osiya of the committee's support in ensuring that the Treasury avails adequate budgetary allocations to facilitate the board to realise its mandate.
