National Assembly Approves New Kenyan Gambling Bill

In an aim to kick gambling addiction to the curb and protect players in Kenya, a new bill has been introduced that could change the gambling industry as a whole. Not only can this new bill protect players, it can boost how the government deals with oversights and boost tax revenues!

This new law is all about stricter licensing requirements, a boost in operator taxes, and smarter protection measures for players. It shows that the country has had a real oversight when it comes to sports betting and online gambling in Kenya - but that's about to change!

Now, President William Ruto simply has to sign the new law to make it a reality.

Delving into the Gambling Control Bill

Kenya’s National Assembly has approved the Gambling Control Bill, 2023, after rejecting several amendments proposed by the Senate.

The bill introduces several noteworthy provisions aimed at overhauling Kenya's gambling industry:

• New Gambling Regulatory Authority - The bill proposes replacing the Betting Control and Licensing Board (BCLB) with a new Gambling Regulatory Authority to oversee gambling activities. This will include betting, casinos, lotteries, and online gambling.
• Revised Taxation Structure - A change from the previous 7.5% tax on betting stakes to a 15% tax on gross gambling revenues is proposed. This adaptation aims to simplify and streamline the taxation process within the industry. 
• Licensing of Online Gambling - The bill introduces specific provisions for the licensing and regulation of online gambling. Operators are required to implement approved gambling control systems that ensure online security and protect underage individuals.
• Public Lotteries for Charitable Purposes - The bill calls for authorising public lotteries to raise funds for charitable causes, ensuring a minimum percentage of proceeds is allocated to the charity.
• Regulation of Casinos and Other Types of Gambling - The bill sets out guidelines for the operation and regulation of casinos, slot machines, and other gambling types, including the authority to oversee these activities. 
• Advertising Regulations - It includes important changes to control the advertisement of gambling activities to promote responsible gambling and protect vulnerable populations.
• Security Deposits for Online Gambling Operators - Licensed online gambling companies must deposit Ksh 200 million ($1.55 million), the same amount required for national lottery operators, to enhance security in online gambling.

These changes could make a big difference to the industry as a whole throughout Kenya. However, not much has been said about its impact on crypto casinos.

Proposed Senate Amendments

The Gambling Control Bill 2023 faced significant scrutiny regarding amendments proposed by the Senate, many of which were ultimately rejected by the National Assembly.

1. Reduction of Minimum Capital Deposit: The Senate proposed lowering the security deposit for online gambling licenses from Ksh200 million to Ksh20 million to make the industry more accessible to local investors. The National Assembly rejected this amendment, stating that a lower deposit might attract unscrupulous operators. 
2. Lowering Minimum Betting Stake: An amendment sought to reduce the minimum betting stake from Ksh20 to Ksh1 to allow broader participation, including individuals with limited funds. The National Assembly opposed this change, fearing it could encourage gambling among minors and vulnerable populations.
3. 15% Tax on Gaming, Lotteries and Prize Competitions: MPs argued that this proposed amendment was unnecessary since similar taxation was already covered by the Tax Laws (Amendment) Act of 2024.  

The National Assembly's rejection of these proposed amendments was based on constitutional concerns, potential conflicts with existing laws, maintaining stringent rules to protect citizens and ensuring the integrity of the gambling industry.

Kenya’s gambling industry will ensure its progress by complying with this bill, even though operators will face higher costs due to the increased security deposits and strict regulations, but the knock-on effects will have a positive outcome on the sustainability of the Kenyan market going forward.