Kenya to set up a gambling regulatory authority

Kenya is on the brink of a significant change in its gambling industry with the proposal to establish a Gambling Regulatory Authority. This move aims to provide enhanced protection for minors and set regulations to control online gambling activities. The new authority is set to replace the Betting Control Licensing Board (BCLB) and overhaul the Betting Lotteries and Gaming Act of 1966. Peter Mbugi, the CEO of the Betting Control Licensing Board, shed light on the upcoming transformations in the industry. Currently, Kenya's gambling sector is a vital contributor to the country's economy, with approximately 100 licensed bookmakers operating in the market. While not all licensed entities are highly active, there are around 20 prominent players in the industry. The sector also includes about 50 casinos and various public lotteries that collectively shape the gambling landscape. Over the past three years, efforts have been made to ensure regulatory compliance and tax contributions from operators to bolster government revenue. However, Mbugi emphasized that there is still room for improvement in terms of regulatory adherence, operational vibrancy, and overall industry growth. The dynamic nature of the gaming industry, driven by technological advancements and evolving consumer preferences, presents opportunities for innovation and development. Mbugi highlighted the necessity for regulatory bodies to adapt to these changes to ensure a sustainable and responsible gambling environment. The existing framework governing gambling in Kenya, the Betting, Lotteries, and Gaming Act of 1966, has undergone numerous amendments over the years. However, Mbugi highlighted the inherent limitations of amending a decades-old law to align with current industry dynamics. As a result, the initiative to draft a new law began in 2019 to address the shortcomings of the existing legislation and cater to the contemporary gambling landscape. The establishment of a Gambling Regulatory Authority represents a significant shift from the current model of the Betting Control and Licensing Board, signaling a transition towards a more autonomous and revenue-generating regulatory body. The envisioned authority aims to institute modern regulations that reflect the industry's current needs and promote sustainable growth. Mbugi emphasized that the intention is not to dismantle the existing structure but to strengthen it to better regulate the evolving gambling sector. While discussing the implications of these changes on investor sentiment and market dynamics, Mbugi expressed confidence in the industry's potential to attract new entrants. He emphasized that investors evaluate the industry's viability and market conditions before making decisions, suggesting that the proposed regulatory changes are unlikely to deter interested parties. Additionally, Mbugi addressed concerns regarding the new tax targets set by the Kenya Revenue Authority (KRA) for the gambling sector, reassuring that responsible operators comply with tax requirements and view the regulations as a mutually beneficial framework that supports industry growth.