Navigating Online Gambling Regulation in Kenya

The Past, Present, and Future of Online Gambling in Kenya

Online gambling has had a turbulent history in Kenya. While gambling has long been popular, recent years have seen massive growth in online betting. However, robust regulations have been slow to materialize even as concerns rise over problem gambling.

The Age of Gambling in Kenya

Gambling has long been a favorite pastime across Kenya. Traditional betting on sports, casino games, poker, bingo and lotteries remain well-loved entertainment options.

Key landmarks:

• Gambling first legalized in 1966
• Kenya Charity Sweepstake launched in 1974
• First land-based casinos opened in the 1980s and 1990s

The Kenya Charity Sweepstake has contributed billions of Kenyan Shillings (KES) to good causes like healthcare and education over its history. However, concerns emerged in the 1990s over lack of accountability and mismanagement of funds.

History of Gambling Laws in Kenya

Gambling legislation in Kenya has failed to keep pace with technological shifts and socioeconomic change. Laws drafted decades ago require modernization.

Major gambling laws:

• Betting, Lotteries, and Gaming Act (Cap 131 Laws of Kenya) — Legalized some forms of gambling in Kenya upon independence in 1966. Established the Betting Control and Licensing Board (BCLB) as a regulatory body.
• The Kenya Charity Sweepstakes Act (Cap 131) – Created the Kenya Charity Sweepstakes to raise funds through lotteries. Amended many times from initial passage in 1974.
• The Pool Betting Act — Legalized pool betting on sports and animal racing events.

These laws left grey areas around emerging at-home and online gambling formats. Legislative gaps allowed sports betting and online gaming sites to blossom, especially in the past decade.

Laws on Online Sports Betting in Kenya

Kenya has taken tentative steps to regulate the booming sports betting industry in recent years. But offshore online betting sites still illegally target Kenyan customers due to lax enforcement.

• The Gaming Bill 2019 sought to expand licensing and regulation across all forms gaming. But it has yet to be passed into law amid industry opposition.
• A 35% tax on gaming revenue introduced in 2017 was also delayed after industry lawsuits.
• The BCLB maintains a list of 27 legal betting sites in Kenya. But many more unlicensed sites accept bets from Kenyan gamblers illegally without permits.

Industry size:

• Estimated 20 million Kenyans bet on sports.
• Reported KES 200 billion market but likely larger due to underreporting.
• Contributes ~2% to Kenya’s GDP.

Concerns have risen over increased problem gambling and addiction with limited treatment options across Kenya.

Laws for Online Casinos in Kenya

All forms of online casino gambling remain banned in Kenya under the Betting, Lotteries, and Gaming Act (BLGA). Only land-based casinos are legal currently.

The BLGA states: “no betting license shall be issued to authorize pool betting on casino games like roulette, dice, cards, bingo and coins.”

Most offshore online casinos block Kenyan IP addresses to comply with the law. However, VPNs allow tech-savvy gamblers to bypass geo-blocks and access online slots, table games, video poker and live dealer options illegally.

Proposals to establish an Online Casino Control Board were put forward in 2019’s draft Gaming Bill. But legislative progress has stalled even as black market remote gambling persists.

The Future of Online Gambling

• What will future gambling laws in Kenya look like?
• Can a regulated online gambling market balance business interests with responsible gaming safeguards?
• How will terrestrial vs online gambling revenue shift in Kenya this decade?

The above questions remain unresolved. But global trends point to increasing liberalization of online gambling with appropriate oversight. If regulated and taxed properly, the online gaming boom can fund public services while protecting players. But the clock is running as unlicensed operators undermine existing laws.

Conclusion

Kenya’s gambling laws require modernization and clarification to match rapid technological shifts. While land-based gambling remains legal, online sports betting operates in a grey area lacking robust oversight. Online casinos meanwhile are clearly prohibited, although widely available via black market sites.

As internet access rises across Kenya, demand for remote gambling will only increase. Pragmatic updated regulations can harness this momentum to fund public services while insulating vulnerable communities from gambling risks. With reasonable legislative reforms, Kenya can build a sustainable, socially responsible gaming sector catering to a fast-growing digital audience.

Key Questions