The soccer betting industry continues to surge in Kenya, with a new legislation being introduced that could reshape the industry. The Kenya Gambling Control Bill 2023 contains rules targeting protection, regulation, and economic benefits, to enhance consumer protection and better leverage the growing industry economically.
The soccer betting industry continues to surge in Kenya, with a new legislation being introduced that could reshape the industry. The Kenya Gambling Control Bill 2023 contains rules targeting protection, regulation, and economic benefits, to enhance consumer protection and better leverage the growing industry economically. The bill is currently under discussion in parliament, and if passed, it would mark a shift for the sports betting industry in the country, promising stricter oversight, consumer protection, and enhanced economic policies to retain gambling profits within the country.
For many Kenyans, soccer betting has become a popular pastime. Soccer has always played a huge role in the hearts of Kenyans, as one of the most popular sports in the country. With a strong soccer fanbase and various digital platforms available, soccer betting and sports betting in general has become accessible to most citizens in the country. Statistics from 2021 show that it is especially the Kenyan youth that is actively participating in betting, with over 80% of Kenyan youth surveyed declared they have already gambled or betted. This high number is a product of mobile technology, where major operators like Bombastic betting both offer sports betting through web and mobile devices. Furthermore, Bombastic betting offers odds on soccer events from all around the world, coupled with sports betting options on a large selection of other sports as well.
With the Gambling Control Bill 2023, the Kenyan government seeks to impose new regulatory standards to target vulnerable consumers, including youth. The new regulations would be imposing measures limiting the reach of gambling among young people, with the aim to mitigate the social impacts of gambling related debt and addiction.
There are several provisions outlined in the Gambling Control Bill 2023 which would both impact consumers and the industry.
The bill proposes to establish a Gambling Regulatory Authority to replace the existing Betting, Control, and Licensing Board (BCLB). The new body would have broader power to enforce regulations, license operators, and monitor gambling activities more effectively. Another part of the bill is proposing a minimum betting limit, requiring bettors to wager a minimum amount. The objective of this proposal is to discourage frequent betting and compulsive gambling.
To capture more economic benefits, the bill recommends increasing the tax on the revenue of companies. The tax would be increased from 7.5% to 15%, and the funds would go toward government initiatives. Furthermore, local governments would be able to impose monthly fees, which would introduce revenue streams for counties. The bill is also addressing concerns related to underage and irresponsible gambling. One key measure is to limit gambling advertisements on radio and TV, especially during peak hours when young audiences are most exposed.
The bill is also favouring keeping revenue in-country. Hence, the bill mandates a minimum of 30% local ownership for all betting firms operating in Kenya and requires them to transact with local banks. The goal is to ensure local economic benefits. Another part of the bill is to make the process for acquiring and maintaining a gambling license more stringent. There will be higher compliance requirements, as gambling companies will need to meet set standards on customer safety, fair play, and responsible advertising.
For soccer bettors in Kenya, and sports betting consumers in general, will experience how these provisions will introduce new standards, which consequently could redefine how they engage with betting platforms. Some soccer fans might find that betting options will feel more restricted depending on the implementation of minimum betting amounts and the potential imposed limits on advertising.
Furthermore, consumers can experience fewer international betting options, since the 30% local ownership requirement can deter foreign companies from entering the Kenyan market. Consequently, the choice of betting platforms could narrow and potentially affect odds competitiveness. But on the positive side, bettors can expect more transparency and security, as the new authority would be tasked to monitor fair play and prevent fraud. Locals have already expressed positivity towards the bill, as some youths are expressing that the minimum requirement can help address impulsive gambling activity.
A huge focal point for the bill is the decision to curb problem gambling, especially among the youth. Betting companies will have to adopt responsible gambling practices, while providing information and tools to encourage safe betting. This would include self-exclusion programs and spending limits. The purpose of such measures would be to reduce the prevalence of gambling addiction, which a growing concern among the youth in Kenya.
The restrictions on advertisements, especially those glamorizing gambling, will also reshape how betting is marketed to the public. In other countries, such as in the UK, such reforms have been implemented where restrictions on gambling ads and sponsorships are designed to reduce compulsive betting.
As it is evident from this article, consumer protection is at the core of the Gambling Control Bill 2023. However, the bill also has economic motivations. By enforcing local ownership and requiring transactions with Kenyan banks, the goal is to retain more gambling revenue within the country.
Furthermore, the bill also intends to support job creation, as it would require betting companies, including those providing Football Accumulators Tips, to hire local staff. This would contribute to employment opportunities for locals while generating tax revenue that can be reinvested into the country.
