Betting regulator pushing for Sh50m entry barrier in crackdown on betting firms

You will need to take a picture of yourself carrying your national Identity card if you want to register as a gambler in the country.

This and increased capital requirements are among the reforms that the Betting Control and Licensing Board is pushing for in a massive crackdown aimed at reducing the number of betting companies.

BCLB Director Peter Mbugi said the Board is seeking to introduce stricter licensing conditions, including higher capital requirements and tighter operational standards, to curb easy market entry by betting firms.

Under the proposed reforms, betting firms would be required to demonstrate significant capital investment before receiving operating licenses — a move aimed at limiting speculative entrants and enhancing consumer protection.

“For a small-scale betting shop (Muaka), we are proposing a minimum capital investment of Sh50 million. For public gaming operators such as casinos, the proposal is to raise the requirement to Sh5 billion,” Mbugi told the National Assembly’s Departmental Committee on Finance and Planning.

The country has been grappling with gambling addiction partly attributed to the growing number of betting companies with the regulator licensing over 236 companies in 2024.

This even as BCLB and the Communications Authority of Kenya flagged down additional 106 gambling websites in the past one year.

Appearing before the committee session, chaired by Kitui Rural MP David Mboni, the director said that currently, application fees stand at Sh10,000, with annual license fees ranging between Sh400,000 for small operators and up to Sh1 million for larger firms.

Homa Bay Town MP Peter Kaluma supported the push to raise the capital requirement, arguing that these relatively low fees have contributed to the proliferation of betting firms, many of which lack robust financial or technical capacity.

“The concern is not just about revenue, but also the public good versus public harm. We need to ensure that gambling is not contributing to societal decay,” Kaluma said.

Mbugi added that the new proposals aim to reduce the number of operators by setting financial and operational thresholds high enough to attract only serious investors.

For instance, online betting firms will be required to show access to at least Sh200 million in capital, while national lottery operators could face a Sh200 million threshold as well.

On the operations of Aviator in the country, the committee also raised questions about the software licensing arrangements used by betting companies and whether these arrangements have tax implications.

Mbugi confirmed that the software suppliers are sometimes third-party entities, and clarified that such relationships will be scrutinised in the new regulatory regime.

For new punters joining the betting platforms, they will now be required to take a picture with their ID as the regulator raised concerns with minors using their parents’ identity to access betting sites.

MPs expressed worry about the social costs of unregulated gambling, including addiction, poverty, and exposure of minors to betting content.

BCLB acknowledged that some of its policy frameworks are outdated and not able to adequately regulate the changing gambling industry.

The BCLB director admitted that existing laws, including the Betting, Lotteries and Gaming Act of 1966, are outdated and that the sector has largely been operating under outdated legal provisions and standard operating procedures.