Kenya Market Report
SportPesa unveiled a Ksh 75 million sponsorship agreement with Football Kenya Federation Premier League side Shabana FC. In addition in July 2024 it announced its partnership with the Kenya Rugby Union for the 2024 National Sevens Circuit. However, several betting companies have pointed to “punitive
taxation” as a significant factor in their decision to cease operations. For instance, Betsafe shut down in May 2024, citing the heavy tax burden that has made it increasingly challenging to remain profitable. Other operators including Betin and Betway which have also left the market.
THE NEW GAMBLING BILL Te government is looking at making major changes to the way the industry is regulated with a new bill now under consideration. Te initiative to draft a new law began in 2019. Te Kenya Gambling Control Bill was published on 31 October 2023. Te primary focus of the proposed legislation is safeguarding gamblers, implementing strict measures to combat illegal gambling and underage gambling. Other key elements contained in the bill include license issuance from one year to 36 months. Te bill also proposes the creation of the Gambling Regulatory
Authority to take over the functions of the BCLB, with the goal of improving the oversight of gambling activities. Te functions of the new authority have been significantly broadened as well. Te new authority would be responsible for establishing guidelines and regulations for gambling operations, as well as developing and overseeing policies at both the national and county levels. Te bill assigns the national government the responsibilities of regulation, policy formulation, and enforcement. In contrast, the county governments are designated with localised admin- istrative duties, including the issuance of business permits for gambling establishments, monitoring and evaluation, as well as managing complaints and arbitration processes. Te new authority will advise county governments on regulating
gambling activities. Furthermore, it will carry out studies to evaluate the socio-economic effects of gambling. It is also tasked with maintaining a registry of gambling machines and devices, performing security assessments, and implementing a com- prehensive electronic monitoring system for regulatory compliance. Te proposed legislation also emphasises the importance of
local ownership and financial accountability in the gambling sector, establishing clear guidelines to promote economic benefits for Kenya while combating illegal financial activities. A corporate body cannot obtain a license unless at least 30 per cent of its shares are held by Kenyan citizens. Te corporate body is also required to maintain an account with an authorised financial institution registered in Kenya into which all monies relating to the proposed betting and gaming activities are paid.
ONLINE GAMBLING UNDER THE NEW BILL Te new bill covers online casinos and online gambling in some detail. Crucially foreign gambling operators may only receive a license if they are registered in Kenya and have a physical address in the country, among other requirements. Individuals wishing to operate, sell, or promote online gambling
in Kenya can apply for an online bookmaker's license, an online lottery license and an online casino license. Licensees must conduct online gambling activities under an approved gambling control system, which includes measures to protect against underage gambling and measures to address gambling vulnerability. Under new proposals the authority is also tasked with estab-
lishing a framework for the real-time monitoring of casinos and online gambling activities, accessible to the Communications Authority of Kenya and relevant government agencies.
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