• The regulator is vouching for a centralised control system to monitor live placing of bets and winnings.
• Bill proposes that betting firms pay Sh100 million gaming security and Sh30 million annual licence fees
Image: VICTOR IMBOTO
Tough economic times await the media if the gaming regulator succeeds in its bid to regulate all betting advertisements.
The Betting, Licensing and Control Board backed tough laws proposed by Parliament with a view to restricting advertisements - especially through TV and radio, that lure people to engage in betting.
Adverts with testimonials of people purporting to have won a bet, call-ins by FM stations, and unsolicited SMSs asking people to take part in a game are targeted.
The regulator is also vouching for a centralised control system to monitor activities – including placed bets and winnings – live.
BLCB director Peter Mbugi disclosed this on Thursday when he appeared before the parliamentary Sports committee, which is reviewing Gaming Bill, 2019.
The bill, which seeks to create a legal framework for regulating betting companies, is subject to public participation.
It stipulates that betting firms operating in Kenya will pay Sh100 million for gaming securities and Sh30 million annual licence fees.
Under the proposed law, Kenyans seeking to place a bet will spend a minimum of Sh50.
The committee, chaired by Machakos MP Victor Munyaka, has been seeking public views on various aspects of the bill.
Mbugi wants more checks on FM stations that call listeners with a simple question and delay revealing the answers, making money in the long run.
He said it has been difficult to regulate the adverts since there is no legal basis. The regulator intends to sort out the situation when the Gaming Bill is enacted.
“Winners being paraded in TV stations is a big issue. We need to regulate what is advertised so that we curtail what is put on TV,” Mbugi said.
Further, the regulator wants the winnings computed by considering the total stakes, and the profits that arise from a game.
“We are looking at the industry as based on the entire turnover. Once we have a central control system, we will be able to know how much bet each participant has placed.”
The system will avert instances of tax evasion or cheating when companies make tax declarations.
The Communications Authority backs the bill. It says the SMSs sent by FM stations could be ground for conning listeners.
Christopher Kemei, the director Licensing Compliance and Standards, said the authority lacks a legal ground to eradicate betting operators who mine data from people.
“The companies that run gaming buy this information, some through backdoor from mobile operators. Most of this is illegal and is done under the table,” Kemei said.
The CA regulates advertising according to programing codes. “We will amend our programming code once this law is passed so that we monitor such activities,” Kemei said and criticised gaming operators for violating the law on unsolicited messaging which is strictly prohibited.
"Betting firms violate the law protecting the public from unsolicited SMS because some people could have been subscribed unknowingly,” the CA said.
Munyaka sought to know from the CA official why they allow telcos to access people's phone numbers.
The MPs said they would consider proposals to increase minimum bets from Sh50 to Sh500 as a deterrent as proposed by the public.
They would also consider increasing the gaming securities beyond the proposed Sh100 million to avert losses on the part of players.
MPs Kubai Iringo (Igembe Central), Bernard Shinali (Ikolomani), Jones Mulolwa (Voi), Titus Khamala (Lurambi), Jane Chebaibai (Elgeyo Marakwet), Dan Wanyama (Webuye West) were present.
The proposed gaming law prohibits all media companies to hold betting licences or use any of their broadcast frequencies to advertise or promote their gaming products or activities.
The violators will be fined Sh5 million or imprisoned for a term not exceeding five years.
The bill stipulates that gaming advertisements shall indicate the addictive nature of gambling, notify players to play responsibly and prohibit a child from playing.
Media firms will be barred from featuring a former winner between 6am and 10pm with a view to encouraging the public to bet, play or participate.
Firms will also be required to dedicate 10 per cent of aired advertisement towards the promotion of responsible gaming.
All media companies holding licences on gaming will not use any of their broadcast channels to advertise or promote their gaming product or activities.