The Betting Control and Licensing Board (BCLB) says the popular betting firm Aviator cannot be deregistered by the government since it is domiciled in Warsaw, Poland.
The board’s director Peter Mbugi said the holders of the Aviator intellectual property rights is SPRIBE which is domiciled in Warsaw with offices in other locations.
Mr Mbugi told the National Assembly’s Finance and National Planning Committee that since the development of the aviator game of chance by SPRIBE, other gaming developers have come up with variant or similar games.
“The aviator has swiftly risen to prominence as one of the most sought after gambling globally,” Mr Mbugi said.
“However, there are many other variants of the game touted to the public in different jurisdictions. This is why the game is so popular and seemingly attractive and enticing to the punter/gambler.”
Mr Mbugi said betting platforms all over the world are consistently enhancing the gaming experience with fresh features and enticing bonuses tailored to the popular aviation game of chance.
BCLB is banking on the Gambling Control Bill, 2023, currently before Parliament, to strengthen regulation of the industry.
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The committee is investigating the operations of betting and gaming companies in the country in a move to tame the vice which has taken a toll on the youth in the country.
This is after Gilgil MP Martha Wangari demanded to know the legal status of Aviator game of chance which she said is being promoted in one of the local popular stations.
In a statement sought from the floor of the House, Ms Wangari said the aviator gaming of chance has been promoted so much in the local media to the extent that it is now stifling the livelihoods of families in both rural and urban set up.
The lawmaker noted that while the practice is popular among the young people, both men and women are also deep into it.
MPs expressed concern over the numerous cases where students gamble with their school fees and parents raiding their savings to gamble with.
At the same time, small-scale betting shops, popularly known as Muaka, will be required to fork out Sh50 million, while larger gaming operators such as casinos will pay Sh5 billion to be registered if MPs approve proposed changes to the law.
The reforms are part of efforts to clamp down on the mushrooming number of betting companies in Kenya.
The board also proposes that individuals registering a gambler in the country must take a picture of themselves holding their national identity card within the frame.
Mr Mbugi told the committee that the increased capital requirements are among several reforms the regulator is pushing to reduce the number of betting firms, which currently stands at 236.
He told the committee chaired by Molo MP Kuria Kimani that the lowest application fee for registration of a betting company is Sh10,000 currently.
The BCLB said it is seeking to introduce tight licensing conditions, including higher capital requirements and strict operational standards to deter easy market entry by betting firms.
Mr Mbugi said the reforms will see betting firms compelled to demonstrate significant capital investment before receiving operating licenses in order to eliminate speculative entrants and enhance consumer protection.
“For a small-scale betting shop (Muaka), the BCLB is proposing a minimum capital investment of Sh50 million,” Mr Mbugi told MPs.
“For public gaming operators like casinos, the draft proposed Bill aims to raise the requirement to Sh5 billion.”
Online gambling firms and the national lottery will be required to deposit Sh200 million to be licensed to operate if President William Ruto signs a new Bill into law.
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Mr Mbugi told the committee that BCLB and the Communication Authority has flagged down more than 106 unathorised gambling websites.
He said the government has launched a crackdown on gambling which is a demerit good just like alcohol and tobacco whose consumption must be controlled.
Mr Mbugi told the committee chaired by Molo MP Kuria Kimani that gambling has the ability to harm the consumer if taken in excess as it may lead to addiction with serious consequences to individuals.
“We have controlled gambling advertisement in the media which is one of the factors contributing to increase in gambling activity,” Mr Mbugi.
“Going forward, gambling adverts must go through Kenya Film Classification Board for classification, and we believe gambling is adult content that can only be aired outside watershed period.”
He said the adverts must not gamorise gambling and must carry warning messages like “Gambling is Addictive! Gamble/Play responsibly.
Mr Mbugi said the board stopped authorising outdoor advertising and discouraged daily jackpot offers, use of markers, bonuses, discounts, free bets and internet free betting.
The BCLB told MPs that the government collected Sh96 billion from betting companies in seven financial years as taxes.
The betting regulator told the committee that it is operating with outdated laws enacted in 1966 to tame the betting craze in the country.
Mr Ngugi told the Finance committee that the government collected Sh96.7 billion in the last seven years with 2023/24 recording the highest taxes at Sh22.3 billion.
Currently, the betting industry attracts an excise tax of 15 percent on stakes, withholding tax of 20 percent on net winnings and a betting and gaming tax of 50 percent.
Betting firms are taxed on the gross gaming revenue, turnover minus winnings paid out. They also pay corporate tax profits.
