Betting firms oppose Midiwo Bill, claim it’s fundamentally flawed

Ronald Karauri. /FILE
Ronald Karauri. /FILE

Betting firms want a parliamentary committee to introduce drastic changes to a bill seeking to regulate the industry terming it ‘fundamentally flawed.”

The association of gaming operators—Kenya yesterday asked the committee on Labour and Social Welfare to amend the Betting, Lotteries and Gaming (Amendment) bill 2016 to expunge offensive clauses.

The association faulted the drafter of the Bill, Jakoyo Midiwo (Gem) for failing to seek the input of all stakeholders before publishing it contrary to law making procedures. “We feel that we should have been consulted in the drafting stage of this bill. This bill lacks fundamentals, it is flawed and does not follow best industry best practices,” said AGOK chairman Ronald Karauri.

Karauri is also the CEO of leading sport betting firm, SportPesa. He spoke when the association, which is critical of the proposed law currently on Second Reading in the National Assembly, appeared before the panel collecting public views on the bill. “Had we been consulted, this bill could have had less debate than we have seen,” he added.

The association, however, supported the creation of an independent authority as proposed with expanded membership from industry operators. The lobby dismissed claims that operators are working in cahoots with the Betting and Licensing Board at the expense of the interest of Kenyans. The board, which is the industry regulator has been blamed for failing to properly supervise the lucrative sector. “We don’t oppose the creation of the authority, we recoginise the challenges of the board,” Karauri said. “We are not in bed with the board.”

The association told MPs that the industry would collapse if some of the sweeping clauses in the bill are not amended. “We want the bill differed to give room for amendments after proper consultations,” said Karauri.

The contentious bill seeks to create a cap for operating hours for betting, gaming and lotteries to from 5pm to 7am, a move the operators argue is impractical.

Contrary to public perceptions and those of the committee, we are overburden by a high tax regime and we need protective laws, said the association.