Inside the World of Gambling in Kenya: A Comprehensive Guide to Licensing Requirements for Betting Companies

In Kenya, gambling has grown at an exponential rate owing to the available types and constant change of events for betting and gaming. The gambling market in the country offers various platforms for both investors and betting enthusiasts, with a host of rated beting site in kenya allowing betting of any kind. In tandem with that, the sector is supposed to regulate itself effectively so as to provide a safe, secure, and responsible environment for all the participants. Therefore, I digress into deliberations on the regulatory framework governing the discipline within Kenya, especially licensing and registration requirements for betting companies.

In this article, we shall look at gambling in Kenya by focusing on the registration and licensing requirements for betting companies. Whether as a player, investor, or a mere curious seeker of knowledge, read on to learn more about the legal framework governing gambling.

 INTRODUCTION TO GAMBLING IN KENYA

Gambling in Kenya has gained wild popularity, with the mobile betting industry on the rise. As such, more and more companies have come to provide gambling services in Kenya. Through this discussion, I intend to assess the requirements for licensing of gambling companies in Kenya.

CATEGORIES OF GAMBLING IN KENYA

The following are the main categories of gambling in Kenya:

1) Public Gaming

Public gaming refers to casinos and activities conducted therein such as slot machines and table games. Casino gaming encompasses all table and casino-style games played with cards. Casino gaming or "game" means baccarat, blackjack, twenty-one, poker, craps, dice, slot machines, roulette wheels, Klondike tables, punchboards, faro layouts, numbers of tickets, push cards, jar tickets, or pull tabs, and any such other activities that the Board may authorize as a wagering game or device under this chapter. Casino gaming or "game" also includes on-premise mobile casino gaming.

2) Public lottery (Short-Term)

Public lotteries are sanctioned by the government, meant for a very particular and charitable cause, and they are supposed to be conducted through a registered institution or organization within a 3-month period. The public participates in the lotteries by buying raffle tickets or lottery tickets, and then draws are conducted to determine the winners who get various prizes.

3) Public lottery (Long-Term)

Public lotteries are organized by certain registered institutions or organizations as a means of generating funds for charities under the aegis of section 36 of the Act, which is part of an on-going charitable cause. The long-term public runs for one year or more. The public markets tickets for such lotteries or raffles; draws are thereafter held to determine the winner, who receives a prize.

4) Bookmakers

A bookmaker provides facilities for gambling in terms of sports betting, pool betting schemes, or Totalizators. Mostly betting that is undertaken in Kenya by bookmakers relates to sporting activities such as football. A bookmaker will thus accept a bet on a sporting occasion, and other events pertaining to that are at odds previously agreed upon which they accept and pay.

5) Totalizator

This is a type of gambling where players compete against each other while guessing the results of various sporting events, be it horse racing or football. The winners allocated their prize money to the amount of their stake. An organization promotes its activity by giving prizes to those who participate in such activities in order to increase sales.

REGULATORY FRAMEWORK OF GAMBLING IN KENYA

The Betting, Lotteries, and Gaming Act (Cap 131) Laws of Kenya represents the legal network within which betting companies in Kenya operate. The act establishes the Betting Control and Licensing Board (BCLB), which is the primary body with the mandate of issuing and renewing licenses for gambling in Kenya. The board ensures that all licensed betting companies comply with the provisions of the Act and its regulations.

GAMBLING IN KENYA LICENSING REQUIREMENTS

• Requirements for licensing Public Gaming

1. 1. The applicant is to complete the prescribed form.
   2. Submit a detailed concept for the proposed Business.
   3. Payment of:-
      • Application fee Kshs. 1,000,000/-
      • Investigation fee:
        1. Local Director 250,000/-
        2. Foreign Director 1, 000,000/-

Note: These fees are paid upfront and are non-refundable.

1. 4. The proposed operating name of the business if different from the registered one.
   5. Business form (sole Proprietorship of the joint venture).
   6. Names of Directors and shareholders to be supported by a current CR12.
   7. A PIN certificate and Tax compliance certificate from Kenya Revenue Authority.
   8. A copy of the certificate of incorporation or registration as the case may be.
   9. Certificate of Good Conduct for the Company Directors.
   10. Memorandum and articles of association for your company whose objects must among others include gaming.
   11. Evidence of capacity to undertake public gaming operations in a seamless manner.
   12. A business plan showing the minimum investment and Sources of funding.
   13. Submit a broad statement on the choice of Kenya for the licenses applied for and the anticipated benefits to:-
       • Punters/players
       • Kenyan public
       • Government of Kenya
       • Directors and shareholders
   14. The proposed games of chance to be offered in the casino with a brief description of each game.
   15. The name and full address of the company(s)/manufacturer(s) that/who will be providing the applicant with the gaming equipment, such as tables, Gaming machines, cards, and all other devices and systems to be used in the casino.
   16. The rules for all the games to be offered as well as the payback percentages.
   17. Proposal on how to mitigate excessive play and underage participation.
   18. Dispute resolution procedure.
   19. Audited Accounts for the applicant’s other business operation for the last three (3) years, and evidence that none of them has pending litigation and if any, provide the Case No. nature and status.
   20. The proposed principal place of business is Physical and contact address.
   21. In case of a leased premises copy of the lease agreement executed due to be executed, The location will be subject to inspection to determine its suitability as a public gaming premise and for new public gaming premises the location must be at least 5 kilometers from existing and operating public gaming premises.
   22. The License Shall be issued for only one specific location.
   23. In addition to the submission of the above information, you will be expected to complete a Probity form to facilitate due diligence.
   24. Demonstrate ability to pay the applicable fees shown below.
       • Application fees – 1,000,000/= (non –refundable)
       • License fee Grant – 3,000,000/=
       • Annual License fee – 500,000/=
       • Investigation fee (local Director) – 250,000(non-refundable)
       • Investigation fee (foreign Director) – 1,000,000/=(non-Refundable)
       • License renewal – 25,000/=