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Have you ever imagined there’ll come a time when Kenya will shore up its gambling regulation? Well, the time is here. For many Kenyans, online gambling is more than just a distraction to pass the time. Without a doubt, this is very much a big deal! So, what exactly is going on? Let’s get into it.
Following the rejection of several propositions by the Senate, Kenya’s National Assembly finally approved the Gambling Control Bill, 2023. This move marks a critical moment in the gambling industry, reforming and overseeing regulations that create an efficient structure for gaming in this country. Upon the President’s signature, this Act has been sealed into the law.
Rejected Proposed Amendments
Earlier, the Senate had proposed the minimum gambling stake reduction from Ksh 20 to Ksh 1. This presents an argument that this will benefit school children who can effortlessly access a shilling. Unfortunately, this proposed amendment was perceived to encourage underage gambling, so the MPs rejected it.
In further attempts, the Senate requested the introduction of an additional 15% tax on lotteries, gaming, and prize competitions. However, this proposition didn’t see the light of day, as the MPs found it unnecessary. An MP Committee led by Dan Wanyama reported that “the proposed amendments, contravenes Article 109 of the constitution, which caters for the origination of Bills.”
The Implication of the Approved Gambling Control Act
After the back-and-forth arguments, the Kenya Parliament has finally approved the Gambling Control Act to regulate this industry better. Compliance with this Bill will be overseen by the Betting Control and Licensing Board, ensuring the legal running of all betting activities. This Act requires operators to pay a deposit fee of Ksh 200 million to institute enhanced security in online gambling further.
In addition, the Bill establishes a 15% gaming tax on all gaming revenue with scheduled payments on the 20th of every month to the Kenya Revenue Authority. While this tax exists, the National Assembly rejected the additional 15% tax tender on lotteries, gaming, and prize competition. Following the amendments of the 2023 Gambling Control Bill and its sailing through the Third Reading, it awaits the signing into law by President Ruto.
What’s in for Bettors and Gambling Operators?
The gambling market faces rapid growth, which ultimately requires more stringent regulations that ensure safe and responsible gaming. On the bright side, these laws will clean up the betting space. Furthermore, this would eradicate fraudulent and unlicensed companies and enhance players’ protection.
More so, the new Act aims to end unscrupulous practices, prohibit underage gambling, and help prevent compulsive betting behaviors with stipulated gambling limits. With these new regulations in the Kenyan gambling industry, operators face increased running costs due to strict licensing conditions and higher security deposit requirements.
In addition to the security deposits, foreign companies must pay Ksh 6.5 million for the public lottery and Ksh 5.5 million for public gaming. This calls for licensed gambling establishments to have accounts with local banks, making financial tracking and oversight easier.
Potential Economic Outcomes
On a final note, gambling in Kenya won’t be curbed anytime soon but rather evolve. The new bill aims to balance the economic benefits of the industry with the need to protect consumers. Due to the remarkable transformation, the Kenyan gambling industry is becoming one of the most active regulated markets on the continent.
However, do you think this regulation is the right direction or the government is going too far? Till then, do not miss out on your chances. Go for the stakes if you can bear it.
Source: SiGMA World
