COMPLIANCE

Stick to the law or face sanctions - Betting firms warned

"Follow the law and your business will be clean, but if you have to know me or anyone else, it will become a problem"

In Summary
  • BCLB said operators are required to submit proposals on corporate social responsibility (CSR) as part of the requirement and conditions licensing and renewal of licenses.
  • The income tax of betting and gaming companies is subjected to corporate tax at 30 percent for residents and 37.5 for non-residents.
BCLB board chairperson Dr Jane Makau during a stakeholders' forum at the Kenya School of Government on March 31, 2023./EZEKIEL AMING'A
BCLB board chairperson Dr Jane Makau during a stakeholders' forum at the Kenya School of Government on March 31, 2023./EZEKIEL AMING'A

Betting and gambling firms operating outside the law risk facing legal sanctions, the government has warned while calling for compliance among all players.

Principal administrative secretary Arthur Asiya claimed the industry was laden with individuals running the business illegally.

Some of these operators, he said, are doing so because they enjoy protection from some powerful individuals.

"Follow the law and your business will be clean, but if you have to know me or anyone else, it will become a problem," Asiya advised without spelling out actions.

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He added:

 "I was told one cannot run the business without knowing anyone. We know there are Kenyans gambling in private houses and the perception is who do I know."

The official made the remarks Friday during the stakeholders’ forum organized by the Betting control and licensing board (BCLB) in Nairobi.

He was representing the head of public service Felix Koskei.

He stated that the government is keen on reforming the sector noting it has been neglected for long.

The industry, he noted, is one of the fastest-growing industries in the World.

"It has a serious wave now, it is perceived to have easy money which is not the case," Osiya said as he appealed to the respective firm to protect society from addictive gambling.

Currently, there are 105 bookmakers, 56 public gaming (casinos), and 13 lotteries that have been licensed to operate in the country.

Representatives from the Kenya revenue authority (KRA),  Immigration, Financial Reporting Centre (FRC) were present during the event which was attended by various firms.

BCLB board chair Jane Makau told the firms to comply with the provisions of the current and applicable laws in the activities.

She said with the proliferation of gambling in the country, the government expects them to ensure the public is protected from the products it offers.

“We expect you do responsible gaming…have house conflict resolutions and gaming policies. The government does not allow the young, youth and the vulnerable to participate in gaming,” she stated.

Makau emphasized the need for the firms to keep records of their clients to ensure children have not been involved something she said should be implemented before July.

The chairperson at the same time stated that operators will be required to submit proposals on corporate social responsibility (CSR) as part of the requirement and conditions for licensing and renewal of licenses.

The board, she said, will guide such CSR activities to ensure equitable distribution, regional balance, government priorities and its full implementation.

“We shall follow to ensure the activities are implemented so that you do not just put it on paper,” said Makau while commending companies that already have the policies in place.

KRA’s chief manager in charge of betting and gaming said the industry helped the government fetch Sh22 billion in the 2021-22 financial year.

The income tax of betting and gaming companies is subjected to corporate tax at 30 percent for residents and 37.5 for non-residents.

Among the challenges in the industry are illegal gambling (land-based and online), problem gambling (addiction), lack of commitment by operators to promote responsible gambling and low CSR engagement.

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