NAIROBI, Kenya — In a significant move to overhaul its rapidly expanding betting industry, Kenya’s Betting Control and Licensing Board (BCLB) is proposing sweeping reforms that could soon require individuals registering for gambling accounts to submit a selfie holding their national ID. This measure is part of a broader strategic plan by regulators to enhance oversight and ensure stricter compliance within the sector.
Addressing the National Assembly’s Finance and Planning Committee, BCLB Director Peter Mbugi outlined a series of proposed changes aimed at tightening market entry and elevating compliance standards to reduce the proliferation of speculative operators.
Among the key proposals is a substantial increase in the minimum capital investment required for betting firms.
“For a small-scale betting shop (Muaka), we are proposing a minimum capital investment of Ksh 50 million. For public gaming operators such as casinos, the proposal is to raise the requirement to Ksh 5 billion,” stated Mbugi, indicating a clear intent to weed out unserious entrants.
The regulator is also proposing a capital requirement of Ksh 200 million for online betting platforms and national lottery operators, figures significantly higher than current financial thresholds.
These proposed reforms come amidst growing national concern over a surge in gambling addiction, particularly among the youth, a trend exacerbated by the sheer number of betting firms operating in the country.
In 2024 alone, the BCLB licensed over 236 companies, while an additional 106 gambling websites were flagged by the Board in conjunction with the Communications Authority of Kenya.
Mbugi emphasized that the new measures are designed to bring order to an industry that has long been plagued by weak oversight, opaque ownership structures, and lax technical standards.
Currently, the application fee for a betting license stands at a mere Ksh 10,000, with annual license fees ranging between Ksh 400,000 and Ksh 1 million depending on the operator’s size—figures lawmakers argue are far too low given the inherent risks associated with the sector.
Homa Bay Town MP Peter Kaluma voiced his support for the proposed increase in capital requirements, asserting that gambling should not be permitted to fuel moral decay.
“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 stated.
The committee also directed its scrutiny towards Aviator, a fast-rising game of chance that has rapidly gained popularity across online betting platforms.
Built on a multiplier model, the game allows punters to place a bet and watch a virtual plane or animated object ascend as odds increase, requiring players to cash out before the object “crashes.”
Mbugi explained that Aviator operates on complex algorithms and employs random number generators, ensuring that outcomes are independent and unpredictable.
“There is no known trick or formula to predict outcomes. We ensure the algorithms used in these games are vetted before authorization to confirm fairness,” he said.
While acknowledging the straightforward gameplay, Mbugi stressed the imperative to regulate both the game mechanics and associated advertising. He noted that, at present, no Aviator games are authorized to advertise on TV, radio, or in print without explicit approval from the Board.
To bolster oversight, the BCLB is actively seeking funding for a centralized Gaming Monitoring System. This system would enable real-time surveillance of all licensed betting operations nationwide, allowing for improved tracking of compliance, revenue generation, and player protection measures.
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New user verification protocols are also under consideration. One significant proposal would mandate new gamblers to upload a picture of themselves holding their national ID during the registration process. This measure aims to curb access by minors who might attempt to use their parents’ identification documents.
Lawmakers raised concerns about the broader social costs of unregulated gambling, including the severe impacts of addiction, financial destitution, and the alarming normalization of gambling among minors.
“Some of our frameworks are outdated and can no longer adequately address the evolving industry,” Mbugi stated, specifically highlighting the Betting, Lotteries and Gaming Act of 1966 as legislation in urgent need of overhaul.
The proposed Gambling Control Bill aims to enshrine these reforms into law, providing a robust legal foundation for enhanced oversight.
“The Board aspires to create a well-regulated gaming industry that protects the public, promotes responsible gambling, and drives investment and revenue growth,” Mbugi concluded.
