Sh96.7 billion betting revenue at risk as illegal sites rise, laws lag

Sh96.7 billion betting revenue at risk as illegal sites rise, laws lag
BCLB Director Peter Mbugi. PHOTO/Handout
In Summary

This surge reflects gambling’s growing appeal across Kenya’s population, following similar trends seen in other parts of Africa.

Kenya has earned nearly Sh100 billion from betting companies in the last seven years, with collections reaching Sh22.3 billion in 2023/2024 alone, according to data presented to Parliament by the Betting Control and Licensing Board (BCLB).

Since 2018, the government has steadily increased its revenue from betting, collecting Sh96.7 billion in total, including Sh16.9 billion in 2022/2023 and Sh14.7 billion in 2021/2022.

By February this year, Sh14.5 billion had already been collected in the current fiscal year.

This surge reflects gambling’s growing appeal across Kenya’s population, following similar trends seen in other parts of Africa.

However, BCLB Director Peter Mbugi warned Parliament about the social risks linked to this rise.

He explained that gambling is no longer just for entertainment; many people now rely on it as a source of income, driven by high unemployment and the false belief that gambling offers easy money.

"The worry is that gambling has changed from its original purpose of entertainment to becoming a source of livelihood," Mbugi said.

He pointed out that the number of legal and illegal gambling providers is increasing, making regulation difficult.

Mbugi highlighted that Kenya’s current gambling laws are outdated, dating back to 1966, and are not strong enough to manage today’s betting businesses.

The penalties under this old law fail to discourage illegal gambling activities.

Advocating for the Gambling Control Bill 2023, Mbugi said new legislation is needed to protect consumers and regulate the industry effectively.

He also warned about offshore gambling websites that operate without government oversight, exposing players to unregulated and risky betting practices.

Technological advances and widespread mobile internet access have made gambling available anytime, anywhere, complicating control efforts.

"The objective now is to scale up the war against illegal gambling through a multi-agency approach, promote responsible gambling, and ensure that the economic contribution of gambling outweighs the negative social impact," he said.

He stressed that gambling, like alcohol and tobacco, is a harmful product that needs strict control to prevent addiction and other social problems.

"Gambling can harm consumers if taken in excess, potentially leading to addiction with serious consequences for individuals and society, ultimately fostering negative attitudes toward hard work," Mbugi added.

In light of these concerns, the BCLB last month imposed a 30-day ban on gambling advertisements on all media after some promoters misleadingly marketed gambling as a quick path to wealth.

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