New Kenya gaming bill targets advertising with 35% broadcast tax
Increased licensing fees and minimum bet amounts all included in new legislation
Kenya’s National Assembly is set to debate legislation that would introduce severe new taxes and broadcasting restrictions on gambling advertising.
Following the Kenyan Betting and Licensing Control Board’s aborted attempt to ban gambling advertising, the Gaming Bill introduces new restrictions on gambling advertising which would require operators to pay a “Gaming Advertisement Tax” of 35% of the advertising cost, which is payable any time a gambling advertisement is aired on radio or TV.
In addition, operators will now be required to dedicate 10% of all their advertising to responsible gambling ads.
Under the proposals, adverts cannot be featured or broadcast on television or radio between the hours of 6am and 10pm under the bill, unless the advertising occurs during a live sporting event. Operators found to be in breach of these standards face fines of KES20m (£155,640) or a five-year prison sentence.
The Gaming Bill 2019 would replace pre-existing Kenyan gambling legislation and replace the current regulatory authority, the Betting and Licensing Control Board, with the new National Gaming Authority, which would be responsible for regulation and licensing.
Under proposals, licensing fees for all forms of online gambling and online sports betting would increase to KES100m (£778,254) for a three-year licence, with operators being charged a further KES30m (£233,476) on renewal.
At present operators are charged KES1m application fee by the Betting and Licensing Control Board, then a KES3m licence fee when the licence is issued, and finally KES25,000 upon renewal.
In addition to the new regulator, a new Gaming Appeals Tribunal would be established to provide adjudication in respect of gambling-related disputes.
As a condition of licensing, operators are required to put up a financial security payment of KES200m (£1.5m) in the event that they become bankrupt or are unable to pay winnings.
All monetary winnings generated online are required to be paid to players within two days, while all non-monetary winnings must be paid within seven days.
Players are required by law not to bet less than KES50 with any licenced gaming operator, with any individual found to be in breach of this law subject to a fine of KES5m or six years in prison.
Online operators found in breach of Kenyan gaming law would be liable to receive fines of KES50m, while individuals found in breach of the law could receive a KES200m fine or a two-year prison sentence.
It would also impose a licensing condition that would require any licenced operator to have at least 30% of its business owned by Kenyan nationals. The Gaming Bill imposes a 15% tax rate on all operators licensed gaming activities.
The bill will be debated in the Kenyan National Assembly over the next few months.