Kenya Market Report
Sports betting has become an increasingly significant revenue stream for the government. During the 2022/23 financial year, which concluded on June 30th, the betting and gaming sector in Kenya contributed KSh 6.64 billion in excise duty to the Kenya Revenue Authority (KRA), reflecting a 30 per cent increase compared to the previous financial year of 2021/22.
Money users had to withdraw cash within seven days of receiving it from M-Pesa, or the money would be returned to the senders. According to a report released by the Communications
Authority of Kenya the third-quarter sector statistics report for the financial year 2023/2024 showed that the number of sub- scribers on mobile money platforms had grown to 38.7 million, achieving a penetration rate of 75 per cent.
HOW GAMBLING IS REGULATED IN KENYA Te Betting Control and Licensing Board (BCLB) was established by the Betting Lotteries and Gaming Act Cap 131 Laws of Kenya in 1966. Te Act provides for the control and licensing of betting and gaming premises and for the imposition and recovery of taxes, for the authorisation of lotteries and prize competition as well as the eradication of illegal gambling. Te document outlines the legal framework governing the licensing, regulation, and control of gaming and betting activities in Kenya. It provides detailed guidelines on the responsibilities and requirements for gaming operators, ensuring compliance with ethical standards and promoting fair play. Trough the BCLB, the National Government issues a 12-
month licence that holds from July 1st to June 30th of the following year, unless explicitly changed by the BCLB. Tis licence places specific terms and obligations upon the licensee or applicant, which must be followed throughout its validity period. Failing to meet these specified conditions or other regulatory requirements can lead to a review, suspension or complete revocation of the gaming licence.
CASINOS In 2018 the government began a crackdown on illegal street slots and the government banned the importation of lotto machines (as they are known locally). Tese are cheap coin- slot machines which are mainly imported from China. Te Minister of the Interior Fred Matiang'i directed regional and
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county security teams to seize unlicensed gambling machines and ordered county and regional commissioners to raid premises and confiscate these machines in areas under their command. He also warned that foreigners involved in illegal betting would be arrested, charged and deported. Tere are around 30 casinos nationwide (with around 1,800
slots) mostly as part of hotels with as many as many as 23 casinos in Nairobi. Only seven counties are licensed to house casinos and other gambling operations and of the 30 casinos around 24 are foreign owned. Seven are run by an Italian family who own the Babylon casino in Nairobi and casino Malindi located in the coastal resort of Malindi as well as bars and res- taurants. Korean, Chinese, Ukrainian and other nationals operate the rest. In February 2022, the government of Nairobi, considered new
legislative proposals that would have limited gambling to five- star hotels with casinos. Te Nairobi City County Betting Lotteries, Gaming Amendment Bill (2021) aimed to restrict access to gambling to mitigate youth involvement by confining activities to upscale venues catering to wealthier patrons. Gaming companies would also have had to use cashless betting in the county to prevent minors from engaging in gambling activities. Te bill would have also prohibited broadcasting audio or video pro- gramming that promoted gambling, lotteries, and gaming ads before watershed hours. However the BCLB threatened to sue Nairobi County if the
new bill was passed as the BLCB argued that gaming is a national issue and that other counties might follow suit and the bill was withdrawn in 2023.
SPORTS BETTING AND ONLINE GAMBLING Sports betting has been allowed in Kenya since 1966 when par- liament passed the Betting Lotteries and Gaming Act. Te sports betting sector is the most prominent within the gambling industry. Sanctioned online sports betting was first offered in
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