The government is proposing tough measures in the Gambling Control Bill of 2023 as it seeks to rein in the runaway betting craze in the country.
Among the key proposals is a requirement for betting companies to contribute a portion of their earnings to a fund that will support the rehabilitation of individuals affected by gambling addiction.
The Betting Control and Licensing Board (BCLB) told a parliamentary committee that it is counting on legislators to rise to the occasion and pass the Bill with various reforms, which it believes will help tackle gambling addiction, particularly among the youth.
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According to BCLB Director Peter Mbugi, it is unreasonable for the government to bear the cost of helping gambling addicts while betting firms continue to enjoy billions in profits.
Mr Mbugi said similar frameworks are already in place in countries like the United Kingdom and could be replicated in Kenya.
“In Kenya, helping those addicted to gambling has been left solely to the government, with betting companies claiming they’ve paid taxes. Why should the government use its resources to solve a problem it didn’t create? Betting firms must be held responsible,” Mr Mbugi told the Sports and Culture Committee.
The board is also pushing for provisions in the Bill to empower it with advanced technology that would limit individuals to only one bet per day, regardless of the platform.
“For example, if someone places a Sh50 bet on one site, they should be barred from placing any further bets that day. This is meant to curb addiction and prevent excessive gambling,” he said.
This approach, referred to as a “cooling system,” would give addicts time to recover before being allowed to gamble again. The duration of the cooling period would be determined by Parliament.
The board explained that achieving this goal would require acquiring a centralised monitoring system to track betting activity across platforms.
“There’s very little we can do without this monitoring system,” Mr Mbugi noted.
However, he cautioned that even with the system in place, a legal framework must be passed by Parliament to authorise its use, given the level of access it would require into the operations of betting companies.
Mr Mbugi also called for expanded powers for the board, including the ability to impose fines on non-compliant operators to ensure industry adherence to the law.
He disclosed that an earlier proposal to raise the legal betting age to 24 years was met with resistance, and the majority view was to retain it at 18.
The director decried the current legal framework as outdated, noting that the Betting, Lotteries and Gaming Act was enacted in 1966 and is ill-equipped to regulate today’s highly digitised gambling environment.
The percentage of adults who gamble is reported to have increased from 1.9 per cent in 2019 to 13.9 per cent in 2021, with urban males aged 18-36 more likely to bet.
Photo credit: File
“Betting is no longer done in brick-and-mortar establishments. It’s now online, on our phones. We need to shift from 1963 to 2023. That’s how critical this new law is,” he said.
Mr Mbugi also cited the lack of stricter penalties, budgetary constraints, and rapid technological advancements in the gambling industry as key challenges in their oversight work.
“We have no funds for enforcement. As we speak, we cannot carry out field operations to monitor betting firms. Our job is not just sitting in the office—we need to be on the ground,” he said.
Committee Chairperson Dan Wanyama described the proposals as “critical and reasonable,” assuring that they would be given serious consideration.
“We are working to finalise the Bill as soon as possible. It could even be assented to by the President next week. So it’s crucial we assess these proposals carefully,” Mr Wanyama said.
Among the proposals contained in the Bill are increase of the period of license Issuance from the current one year to 36 months, banning registered sports players from gambling, display of proof of age by a gambler, registration guidelines provided by the Gaming Authority and minimum penalty of Sh5 million for gambling companies.
Reduction of betting stake
Other proposals include reduction of betting stake from the minimum Sh20 placement to one shilling and reduction of Capital Deposit by gambling operators from Sh200 million to Sh20 million.
Data tabled by the board at the committee indicates that in the last seven years, the government collected Sh96.7 billion in the last seven years with 2023/24 recording the highest taxes at Sh22.3 billion.
In the Financial Year 2028/19, the government collected Sh8.5 billion as taxes, 20219/2020 sh10.3 billion, 2020/21, the government got Sh9.5 billion, 2021/22 it got Sh14.7 billion while in the years 2022/23 sh16.6 billion was collected.
In addition, in the Financial Year 2023/24, the government collected Sh22.3 billion while in this Financial Year 2024/24 up to February, the government has so far collected Sh14.5 billion.
But even as the government is raking in billions from betting companies, Mr Mbugi told the MPs that they are determined as a regulator to ensure that the country does not lose a generation at the altar of economic gains.
“Irrespective of economic value, we must ensure social values are greater than economic gains,” Mr Mbugi told the committee.
According to a survey titled ‘Betting in Africa 2024’ done by a Geopoll, 83 percent of respondents from Kenyans admitted to have placed a bet.
Betting firms are taxed on the gross gaming revenue, turnover minus winnings paid out. They also pay corporate tax profits.
Data from the Kenya Revenue Authority (KRA) indicates that in the last eight months up to March this year, the taxman collected Sh12 billion in form taxes from the betting firms.
