The Betting Control and Licensing Board (BCLB) faces significant challenges in managing underage betting due to insufficient funding from the National Treasury.
Principal Administrative Secretary Arthur Osiya reported to the National Assembly’s Committee on Sports and Culture that the board cannot effectively monitor and regulate the gambling industry because it lacks the technology necessary for oversight.
Osiya emphasized that over 80 percent of gambling activities in Kenya now occur online. This shift has made it difficult for the BCLB to protect young and vulnerable individuals from the dangers of gambling, especially since many underage individuals access gambling sites using their parents’ mobile phones.
“We have encountered an uphill battle in addressing underage participation in the gambling industry,” Mr. Osiya stated. He further noted, “Gambling is addictive and can distract underage individuals from their educational progress.”
To address these challenges, Osiya indicated that the BCLB requires Kes. 500 million to develop and implement a Gambling Central Monitoring System (GCMS) that would enhance industry oversight.
He pointed out, “It’s important to note that over 80 percent of gambling activity in Kenya today, similar to many other countries, occurs online. It is no longer limited to brick-and-mortar establishments.” He stressed that deploying adequate technology is essential for effectively regulating the industry.
In addition to these challenges, Mr. Osiya informed lawmakers that the BCLB has made strides in combating illegal gambling by flagging 37 unauthorized foreign gambling websites and confiscating illegal Chinese slot machines across the country.
He explained to the committee, chaired by Webuye West MP Dan Wanyama, that new technology would enable the board to regulate the gaming industry more effectively, ensuring public protection, generating revenue, promoting responsible gambling, and fostering growth within Kenya’s gaming sector.
Despite facing institutional challenges such as inadequate staffing, training, and resources, Osiya reported that the BCLB has contributed significantly to government revenue, collecting Kes. 88.4 billion in taxes over the past five years. He revealed that during this period, the Treasury allocated a total of Kes. 531 million to the BCLB for regulating the gambling industry.
“In the last five years, the board was allocated Kes. 531 million, yet we collected Kes. 894.6 million in our own source revenue and Kes. 88.4 billion in taxes,” he said.
Osiya urged the committee to expedite the enactment of the Gambling Control Bill 2023, which aims to establish a robust legal framework for regulating the industry and protecting the public from the harmful effects of betting and gambling.
He pointed out that the current Betting Lotteries and Gaming Act Cap 131 has numerous loopholes that frustrate the board’s efforts to streamline the industry.
Mr. Wanyama assured Mr. Osiya that the committee would support initiatives to ensure the Treasury provides sufficient budgetary allocations for the board to achieve its objectives.
