Kenya is located on the equator in eastern Africa, with the East African Rift Valley running through it from north to south. It borders Somalia to the east, Tanzania to the south, Uganda to the west, Ethiopia and South Sudan to the north, and the Indian Ocean to the southeast. Its coastline is 536 kilometers long. However, in recent years, the regulated gambling industry has developed, and the diverse legal environment related to Kenya bookmakers and sports betting activities is of great significance.
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Table of Contents
Summary of Key Events
History of Kenya’s Gambling Laws
Laws that govern gambling activities in Kenya can be stated to have been put in place by the Betting, Lotteries and Gaming Act (Cap 131) of 1966 revised in 2012. This act made it possible to introduce a systematic approach to the regulation and control of betting and thus, Kenya should be noted for having been among the first countries to understand the importance of regulating this sphere of human activity.
Key Legislative Milestones:
- 1966: Enactment of the Betting, Lotteries, and Gaming Act which offers the legal regime for betting and gaming.
- 2012: Amendments on Cap 131 for it to reflect the current needs of the regulation system in place.
- 2023: Proposed Kenya Gambling Control Bill which looks to change current laws and bring in better control and protection measures.
Regulatory of Kenya Bookmakers
The main body responsible for the regulation of gambling activities in Kenya is the Betting Control and Licensing Board (BCLB) provided for under section 3(1) of the Betting, Lotteries and Gaming Act Cap. 131. The BCLB is also responsible for licensing, controlling of betting and gaming facilities and enforcement of the law on betting and gaming.
Functions of the BCLB:
- Granting and/or renewal of licenses for different forms of gambling.
- The supervision and regulation of the activities of entities that are licensed to carry out business activities.
- Observing the laws that are put in place to discourage betting on unlawful activities.
As stated in the Kenyan Gambling Control Bill 2023, the BCLB is to be succeeded by the Gambling Regulatory Authority that is to expand the control over all the aspects of gambling including betting, casinos, lotteries, and media-based gambling.
Prohibited and Allowed Bets
Kenya has laid down certain rules and regulations with regard to the types of bets that can be placed and those that cannot be placed. To this end the BCLB has seen to it that all the betting<
Allowed Bets:
- Betting on local as well as international sports events.
- Table games such as poker, blackjack and roulette, slots, and video poker.
- Lottery games and prize competitions in the form of a sweepstake.
- Online betting and gaming activities relates to the provision of services that involve placing of bets or wagering on certain games through the use of the internet.
Prohibited Bets:
- Activities which are not approved by BCLB and are related to betting.
- Underage gambling and the aspects that are directed towards children.
- Gambling that is against public policy or the law of the country or state.
Different Licenses and Fees
The BCLB offers several types of licenses tailored to different gambling activities, each with specific fees and requirements:
Casino Licenses:
- The initial and annual fees can be literally a few million Kenyan shillings.
- The score echoes the level of regulation and the revenue opportunity.
Bookmaker Licenses:
- Usually ranges between hundreds of thousands of shillings in a year.
- The costs are dependent on the extent of the work to be done and the services required.
Lottery Licenses:
The fees differ based on the scope of the lottery.
National lotteries thus cost more than the local lotteries.
Gaming Machine Licenses:
- Based on the number of devices under the management of the company.
- Usually less costly than the casino and bookmaker licenses.
Online Gambling Licenses:
- Charges differ according to extent of operations as well as kind of games to be provided.
- Usually ranges from the middle to the high level compared to other licenses.
Additional Costs:
- Expenses in legal documents and consultations.
- Financial auditing and accounting services to establish the company’s financial health.
- Fees for the inspection of the gaming equipment, and certification of the gaming software.
Taxation and Economic Impact
The taxation of gambling activities in Kenya is meant to provide revenue to the government while at the same regulating the activities. The Kenya Gambling Control Bill 2023 suggests many alterations to the current system of taxation and has the following goals: to increase the revenue for the government and promote the further development of the country’s economy.
Proposed Changes:
- 15% Tax on Gross Revenues: Instead of the previous 7 it is. This new tax rate on the betting stakes is 5% and it is expected to raise revenue from gambling activities.
- Local Government Levies: Power to fix monthly charges on gambling operators by the local governments.
Kenya Sports Betting
The popularity of sports betting has been on the rise in Kenya especially due to the country’s love for sports and increase in online betting companies. Just like other forms of gambling, the Kenya sports betting industry is governed by the Betting Act and other relevant laws that enlighten the general public on the operations of the betting companies.
Sporting Event Glory Milestones in Kenya:
- 1987: The All-Africa Games takes place in Kenya proving the country’s ability to host large scale sports events.
- 2003: Kenya’s national rugby team emerges winner of the Africa Cup and consequently increases the countries stature in the sport.
- 2012: David Rudisha runs the 800m at the London Olympics and breaks the world record which marks Kenya on the world map of athletics.
- 2016: Vivian Cheruiyot triumphs in the women’s 5000m race at the Rio Olympics and thus extends Kenya’s dominance in the long distance race events.
- 2021: Eliud Kipchoge sets the world record in the marathon and rises as a hero of Kenyan athletics.
Conclusion
The Kenya Gambling Control Bill 2023 is a more extensive legal act that focuses on the regulation of the gambling business, consumer protection, responsible gambling, and the use of the gambling industry for the development of the economy. Therefore, Kenya has set out to achieve both economic and social objectives through the synchronization of regulations relating to gambling.
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