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Kenya national assembly passes new bill to regulate gambling industry
Sudhanshu Ranjan
January 29, 2025
Kenya’s National Assembly has approved the Gambling Control Bill, 2023, after rejecting several amendments proposed by the Senate. The Bill aims to regulate the betting and gambling industry, ensure tax compliance, and protect citizens from exploitative practices. It now awaits President William Ruto’s signature before becoming law.
Key provisions of the Gambling Control Bill, 2023
The Bill increases compliance measures and introduces new licensing conditions to better regulate the gambling industry. The enforcement of these activities will be conducted by the Betting Control and Licensing Board (BCLB) to ensure all gambling activities operate legally.
One of the major provisions of the Bill is the introduction of stringent security deposit requirements for online gambling operators and the national lottery. Each licensed online gambling company must deposit Ksh 200 million (approximately $1.55 million), the same amount required for national lottery operators. This provision aims to enhance security in online gambling, which covers a broader audience than physical gambling premises.
The Bill imposes a 15 percent gaming tax on all gaming revenue, payable to the Kenya Revenue Authority (KRA) by the 20th of every month. The Senate proposed an additional 15 percent tax on betting, lottery, and prize competitions, but the National Assembly rejected this.
“Having considered the Senate amendments to the Gambling Control Bill, 2023, the committee recommends that the House reject the Senate amendments,” the committee said in its report. The Bill sailed through the Third Reading on Thursday, 16 January 2025, and now awaits President Ruto’s signature to become law.
Senate’s proposed amendments and their rejection
The Senate had proposed reducing the minimum betting stake from Ksh 20 ($0.155) to Ksh 1 ($0.0077), arguing that this would protect school-going children who can easily access one shilling. MPs rejected the amendment, saying it would encourage underage gambling rather than curb it.
Another major Senate proposal reduced the required security deposit for online gambling and lottery licences from Ksh 200 million (approximately $1.55 million) to Ksh 20 million (approximately $155,000). The National Assembly rejected this, maintaining that the higher deposit ensures serious operators enter the market while preventing financial fraud.
The Senate attempted to introduce a 15 percent tax on gaming, lotteries, and prize competitions. However, MPs argued that this was unnecessary since similar taxes are already covered under the Tax Laws (Amendment) Act, 2024.
“There shall be a tax to be known as gaming tax chargeable at the rate of fifteen per cent of the gaming revenue,” the Senate amendment, which MPs rejected, reads. “The tax shall be paid to the Kenya Revenue Authority by a person running a gaming business on the 20th of the month following the month of collection.”
Majority Leader Kimani Ichung’wah said some of the amendments by the Senate were already considered under the Tax Laws (Amendment) Act, 2024. “The amendments seek to legislate on matters already addressed by the Tax (Laws) Amendment Act, 2024,” he said during a Special Session of the House on Thursday.
Some MPs, including Suba South MP Caroli Omondi, argued that the Senate’s amendments violated Article 109 of the Constitution, which limits the Senate’s power to introduce money bills.
“In considering the Senate amendments to the Bill, the committee noted that some of the amendments were in contravention of Article 109 of the Constitution that provides for the origination of Bills,” the committee chaired by Dan Wanyama said in its report. The committee said the Senate amendments introduced a 15 percent tax on betting, gaming, lottery, and prize competition turnovers, respectively.
The Senate wanted the counties to control, license, and regulate gambling operations. However, MPs declined to adopt this, reasoning that regulation should stay at the national level to ensure uniformity.
Impact on gambling operators and the public
With the new regulations, gambling companies will face higher costs due to the increased security deposit requirements and strict licensing conditions.
Foreign companies must deposit Ksh 5.5 million (approximately $42,504) for public gaming and Ksh 6.5 million (approximately $50,232) for public lottery licences. The additional Ksh 200 million (approximately $1.55 million) security deposit raises entry barriers, making it harder for new players to enter the market.
The Bill aims to protect the lives of Kenyans from unscrupulous betting practices, guarantee responsible gaming, and prevent financial exploitation. Higher taxation on gambling revenue may raise betting costs, which could dissuade casual gamblers and potentially drive some to illegal betting sites.
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