The Nairobi City County Betting, Lotteries, and Gaming (Amendment) Bill, 2021 is poised to bring significant changes to Kenya’s gaming landscape. This proposed legislation, currently advancing through the approval process, aims to amend the Gaming Act established just last year. The bill introduces several provisions that will reshape the regulation of betting, lotteries, and gaming activities within the country.
Key Provisions:
Five-Star Hotel Domicile: The proposed amendment dictates that all betting, lotteries, and gaming facilities must be located in five-star hotels, as rated by Kenya’s Tourism Regulatory Authority. This requirement elevates the standard for the physical presence of such establishments.
Operating Hours: Licensed gaming premises would only be allowed to operate between 8 pm and 6 am. This regulation seeks to control the hours during which gambling activities can take place, potentially addressing social concerns.
Advertising Restrictions: The bill places restrictions on gambling advertisements, prohibiting them from being broadcast during the watershed period, which spans from 10 pm to 5 am. Additionally, physical advertising such as billboards would be entirely banned. These measures aim to limit the exposure of gambling advertisements, especially during nighttime hours.
Cashless Payments: Operators would be required to accept only cashless payments, six months after the bill becomes law. This move towards cashless transactions aligns with the global trend of digital payment adoption.
Background:
The proposed amendments in Nairobi come after a period of uncertainty surrounding Kenya’s national-level gambling laws. In July 2021, a finance bill was signed into law, reintroducing a betting stake tax at a reduced rate of 7.5%, down from the previous 20% rate that had driven leading operators Sportpesa and Betin to exit the market before it was repealed. Initially, there were intentions to reinstate the tax at the full 20% rate, but it was subsequently lowered by a committee in June.
The Nairobi City County Betting, Lotteries, and Gaming (Amendment) Bill, 2021 represents a significant shift in Kenya’s approach to regulating the betting, lotteries, and gaming industry. If enacted, the legislation will bring tighter controls on the location of gaming facilities, operating hours, advertising practices, and payment methods. These changes reflect ongoing efforts to strike a balance between regulating the industry and addressing social and economic concerns associated with gambling.