The Gambling Control Bill, 2023

Background

The Gambling Control Bill, 2023, aims to replace the outdated Betting, Lotteries and Gaming Act (Cap. 131) with a robust modern regulatory framework. The Bill seeks to address social harms associated with gambling, protect minors, prevent money laundering, and ensure the government receives fair revenue from the sector.

Key Amendments

• Betting, Lotteries and Gaming Act (Cap. 131): Repealed in its entirety (Section 123).
• Proceeds of Crime and Anti-Money Laundering Act, 2009: Amended under Section 126 to designate licensees under the Gambling Control Act, 2023, and the Gambling Regulatory Authority as reporting entities for financial compliance.
• Establishment of Regulatory Bodies:
  • Gambling Regulatory Authority (Section 6): Created to replace the Betting Control and Licensing Board. It will oversee licensing, due diligence, and national policy enforcement.
  • Gambling Appeals Committee (Section 91): Established as a quasi-judicial body with 11 to 13 members to hear and resolve appeals from decisions made by the Authority and county governments.

New Obligations

• Licensing Requirements (Section 27 & 28): Operators must hold valid licences to offer gambling services. Corporate entities must maintain at least 30% Kenyan citizen shareholding.
• Security and Capital (Section 40 & 41): Licensees must provide security bonds or bank guarantees (up to KSh 200,000,000 depending on the category) and satisfy capital requirements.
• Gambling Tax & Levy (Section 45 & 46): Imposes a 15% gross revenue tax and a monthly levy (up to 1%) on gross gambling revenue, which is directed to the Sports, Art and Social Development Fund and the Authority respectively.
• County Government Permits (Section 47): Licensees must secure localized premises permits from relevant county governments before operating.
• Player Verification and Self-Exclusion (Sections 75 & 118): Operators must verify that all registered players are of majority age. Licensees must also maintain a self-exclusion registry and close accounts or restrict marketing material for self-excluded individuals.

Penalties

• Operating Without a Licence (Section 101): First offence fine up to KSh 3,000,000 or three years' imprisonment. Subsequent offences carry a fine of up to KSh 5,000,000 or five years' imprisonment.
• Misapplying Lottery Proceeds (Section 53): Promoting an authorized lottery and dedicating proceeds to unapproved purposes carries a fine of up to KSh 20,000,000 or up to twenty years' imprisonment.
• Betting with a Child (Section 112): Placing bets with a child or employing a child in betting premises is a criminal offence subject to prosecution.
• Failure to Implement Self-Exclusion (Section 118): Operators failing to act on self-exclusion requests within seven days are liable for administrative fines.

Transitional Provisions

• Transfer of BCLB Mandates (Section 124): All rights, assets, liabilities, and obligations of the former Betting Control and Licensing Board are automatically transferred to the new Gambling Regulatory Authority.
• Redeployment of Staff (Section 124): Existing employees of the former board are given the option to join the new Authority or be redeployed in the public service within one year.
• Licence Validity (Section 125): Licences issued under the repealed Act remain valid until their expiration, after which operators must apply to the new Authority.