Government collects Sh96.7 billion from gambling, decries regulatory challenges

Concept of online sport bets. [File Courtesy] The government has in the last seven financial years collected a total of Sh96.7 billion in taxes from gambling, with statistics pointing to an increased uptake of betting online over the years. This, even as the Betting, Control and Licensing Board (BCLB) yesterday decried regulatory challenges such as the fast-changing technology, lack of adequate funding and lack of a central management system. BCLB Director Peter Mbugi revealed that between the 2018/2019 financial and the 2024/2025 fiscal year (up to February 2025), taxes derived from the gambling industry had increased tenfold from Sh8.5 billion to Sh96.7 billion. In documents tabled before the National Assembly Sports and Culture committee, Mbugi explained that gambling had become an increasingly popular activity in Kenya, spurred on by a mix of economic hardships resulting from widespread unemployment, together with the misplaced notion that gambling is a source of easy money. "The penetration of offshore websites offering gambling products has also added extra challenges in the industry, exposing punters to unregulated gambling activity," said the Director. In efforts to curb the proliferation of illegal gambling sites and entrenchment of addiction, he revealed that the Board had since identified and flagged 106 unauthorized gambling websites. But while fulfilling her regulatory mandate, said Mbugi, the Board faced a myriad challenges, key among them a weak and old law (Betting, Lotteries and Gaming Act Cap 131 laws of Kenya to regulate gambling activities) which does not prescribe punitive penalties to deter non-compliance. The MP Dan Wanyama-led committee also heard that inadequate budgetary allocations could not support the Board's activities, such as enforcement operations, monitoring and sensitization programs on responsible gambling. In the 2018/19 FY, the Board had a budgetary allocation of Sh110 million, Sh112 million in 2019/2020, Sh106 million in the 2020/21 FY, Sh107 million in the 2021/222 and Sh98 million in the 2022/2023 fiscal year. Further, in the 2023/24 Financial year, it got an allocation of Sh106 million before the amount dropped to Sh98 million in the current 2024/2025 financial year. "The open cyber space-thanks to globalization, that allows easy access to unauthorised foreign gaming sites, use of virtual assets such as cryptocurrency and other emerging technologies have also proven to be a challenge in the war against illegal gambling," stated Mbugi. "The dynamic nature of the gambling industry and easy access to the internet have enabled gambling anywhere and at any time." The director was, however, quick to note that a number of interventions had been put in place to address the excessive and illegal gambling. "The Board has developed and will be circulating gambling advertisement guidelines to all licensed operators. Going forward, gambling adverts must go through the Kenya Film Classification Board for classification, and we believe that gambling is adult content that can only be aired outside the watershed period. The adverts must not glamorize gambling and must carry warning messages like "Gambling is addictive! Gamble Responsibly", he observed. Adding, "The Board stopped authorizing outdoor advertisements, i.e., use of caravans, road shows, billboards, branding of buildings and vehicles as well as use of influencers, promotions or advertisements and celebrities in gambling." It has also banned the use of speed dial and related predatory advertisements in all internet browsers, discouraged daily jackpot offers, use of markers, bonuses, discounts, free bets and internet free betting, and upscaled the fight against illegal gambling machines and unlicensed betting shops in collaboration with NGAO and security teams. Working with the Media Council of Kenya (MCK) on the enforcement of the code of conduct for media practice 2025, as it relates to gambling in the media, and working closely with Safaricom to identify for closure paybill's / short codes used to promote unauthorised gambling activities.

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