Betting legal issues in Kenya
At some point in 2020, the then minister for the interior and coordination of the national government of Kenya Dr. Fred Matiang’i launched a vicious crackdown on slot machines. In what seemed to have been a government agenda to completely wade off what they perceived as a social vice destroying the youth, so many slot machines were set ablaze and operators arrested. These events happened while online betting sites such as SportPesa, Betin, Betika and many more were increasingly becoming home for those ready to try luck. So, any Kenyan or foreigner may be interested to know in depth about betting legal issues to expect.
2019 bill that threw betting operations into a spin
The betting market in Kenya went on with no incidents until 2019 when the government came up with a new bill ostensibly to regulate it. The Gambling Act 2020 came to be at a time when the government had worked tirelessly to come up with laws to regulate the gambling market. In 2020 the bill was enacted into law and its here that the government swung into enforce it. It wasn’t an easy one for slot game operators and owners of online gambling sites as they tried to comply.
According to the new bill, all people steering gambling sites are required to get a license from the Betting Control and Licensing Board (BCLB). The legislation of the gambling laws gave power to the BCLB to issue licenses, inflict penalties and rescind licenses if required. Initially, there was no taxes in the betting industry in Kenya and all profits belonged to the operator. However, the new laws brought up taxation to betting sites.
Legality of Betting in Kenya
Betting has been legal in Kenya since 1966. Many people have been practicing betting but with not so many regulations. Although the other forms of bettings have been legal since 1966, it was until 2011 that online sports betting was made legal.
What are the betting regulations in Kenya
The number one rule for betting is the age limit. If a person has not reached the age of 18 years they are not allowed to gamble. Therefore, in Kenya, people who have not attained the age of 18 years cannot take part in betting. Do you think the law is good? Of course yes, because the children have to be protected from practicing gambling at a young age.
Furthermore, the government bars gambling sites from making advertisements both on social media and outdoors for certain hours. This is because the ads may entice the young people into joining betting. In curbing this, the government also imposed an additional 35% tax on site advertisements. This is an increase from 20% that was initially put. Moreover, celebrities such as retired football stars will also be denied the opportunity to make gambling advertisements.
Since the legislation of the Gambling Act 2020, the license for online gambling sites rose to a hundred million while that of virtual casinos moved to fifty million. It also authorized mobile money transfer to be used by operators. Hence, 58 million Kenyans are registered to that mode of banking.
How to obtain a gambling license in Kenya
Gambling license application begins with contacting the Betting control and licensing Board. After which, you will be given the application form for Public Gaming. You will then fill the form and submit alongside the required documents and a payment receipt. The fee is paid beforehand and cannot be refunded once paid.
Moreover, it is a must for you to present the application documents physically before the board and give a summary of the suggested enterprise. The board will then access the summary on specific matters concerning it. Some of the issues include the level of preparedness to start the business, the capability to handle the operations among others. It will also review whether the application is compliant with the license requirements.
Consequently, the board will also visit the site to examine if it is well equipped to hold the business you are seeking a license for. In some cases, you might be required to submit more information to the board through the betting Lotteries and Gaming Act, cap 131 of the Kenyan constitution. The board will then notify the applicant when they can collect their license once the application process has been approved. Which takes at least 6 months for one to get the certificate and once in possession, it will be valid for one year.
Why your betting operator licence may be suspended or revoked
The National government via the BCLB issues a 1-year license with conditions and regulations which the holder must adhere to. Some of the regulations that are placed upon a gambling license are like Cybercrimes, computer misuse, consumer and data protection acts, etc. Also, as a company, you need to protect the data of your customer and not share it with third parties. Therefore, if the holder disobeys the restrictions and conditions provided by the BCLB and the operational law, it may attract suspension or abrogation of the license.
The county government on the other hand has its independent laws concerning specific products which operators must review before establishing a gambling site. In the event the county government officer visits a premises for inspections and discovers it is not compliant with the laws, the license can also be canceled regardless of the expiry date.
Bet only via the licensed operators or providers
Choosing a gambling site in Kenya can be hectic because there are numerous operators emerging every day. Some of them don’t provide satisfactory information concerning their licenses. However, it’s very important for bettors to use only licensed sites to prevent them from being scammed by unscrupulous dealers. Regulated gambling sites work under rules which they are supposed to abide by, that’s why they are the safest place for punters.
Furthermore, it is easy to get help in times of need when you use licensed operators. It is normal for betting companies to make mistakes, but getting your problem solved is a gem since it builds trust between them and their customers. Some mistakes could have minor effects on the gambler in that they don’t bother, but once it comes to winnings the need to seek help arises.
The 2019 Online Betting, Lotteries, and Gaming Regulations
In 2019, the Kenyan lawmakers came up with rules and regulations regarding betting, lotteries as well as gambling. As an operator, you need to provide a participation mechanism. It should be done on all the gambling platforms. Apart from that, one needs to provide a detailed procedure of registering and deregistration of the users.
Furthermore, a company cannot be engaged in all types of games. Therefore, an operator needs to list all the games in the betting platform. Apart from that, one needs to provide details and locations of the servers used.
For the foreign gambling providers, they need to have a well-established and functional in house customer support center in Kenya. Also, the company needs to respond to the queries of the users. In case there is any changes in the company’s operations, the board needs to be notified of the changes. All in all, gambling is legal in kenya but only if you do it through a licensed platform.
