November 14, 2023, marks a pivotal moment in Kenya’s gaming law and legislation as the Kenyan Parliament deliberates on the transformative Gambling Control Bill. This significant proposal aims to establish a new regulatory body, the Gambling Regulatory Authority, effectively replacing the existing Betting, Control and Licensing Board (BCLB) as the overseer of the nation’s gambling activities.
Key Features of the New Bill:
The Gambling Control Bill 2023, as outlined in a recent report, plans to subsume the functions of the BCLB into this newly proposed Authority. This move is set to enhance the regulatory framework governing various gambling facets, including betting, casinos, and other forms. This includes oversight of prize competitions, public lotteries, and media promotions. The bill is spearheaded by National Assembly Majority leader Kimani Ichung’wah, signifying substantial governmental backing.
The bill emerges in response to concerns over the lax adherence to licensing requirements by numerous gambling operators, as highlighted in reports from 2022. To address this, the new bill proposes a suite of stringent measures aimed at ensuring compliance. These include heightened gambling taxes, steep fines for breaching license terms, and stringent restrictions on child participation in gambling activities.
Reforming Gambling Operations:
Among the notable reforms, the bill intends to set the minimum betting stake at KES20 (approximately $0.13), with a considerable fine of KES5 million (around $33,000) imposed for any breaches of this limit. Additionally, it seeks to regulate gambling advertisements on radio and TV, prohibiting their broadcast from 6 am to 10 pm.
A significant step towards local involvement, the bill requires that Kenyan citizens own at least 30% of shares in gambling enterprises. It also mandates that all gambling transactions be processed through Kenyan-registered banks. To further cement operators’ commitment to legal compliance, a substantial bank guarantee or insurance bond is required, with varying amounts specified for different gambling sectors.
Taxation and Charitable Contributions:
Under the new framework, the Gambling Authority will oversee all lottery licenses, mandating that at least 30% of lottery revenues be allocated to charitable causes. The Authority will hold the power to enforce compliance, imposing penalties for violations. Unlicensed lottery promotions risk a fine of KES1 million (around $6,500) or a one-year imprisonment.
A significant shift in taxation policy is also on the cards. The Gambling Control Bill proposes a 15% tax on gross gambling revenues, a departure from the existing 7.5% tax on betting stakes. This revision is poised to untangle the complexities surrounding Kenya’s gambling tax regime, paving the way for a more streamlined and fair taxation system.
In conclusion, the Gambling Control Bill 2023 stands as a decisive step towards refining the gambling industry in Kenya. By establishing a new regulatory authority and introducing robust measures, the bill aims to foster a more regulated, responsible, and equitable gambling environment in the country.
