Regulatory Alert: Enactment Of The Gambling Control Act, 2025

Introduction 

Kenya has ushered in a new era of gambling regulation through the enactment of The Gambling Control Act, 2025 (“the Act”). The Act repeals the long-standing Betting, Lotteries and Gaming Act (Cap. 131) and introduces a modern, robust framework for the regulation of gambling activities in the country. 

The new law aims to strike a balance between encouraging a responsible gambling industry, safeguarding consumers, and protecting public interest. It does so by strengthening regulatory oversight, enhancing licensing requirements, tightening compliance obligations, and modernising the treatment of online gambling. 

This Regulatory Alert by CM Advocates LLP's Betting, Lotteries and Gaming Practice Group highlights key changes, compliance priorities, and our full-service support capabilities. 

Establishment of a New Regulator 

The Act establishes the Gambling Regulatory Authority of Kenya (“Authority”) as the successor to the Betting Control and Licensing Board. This new Authority has far-reaching powers, including: 

1. Licensing and regulating all gambling activities in Kenya; 
2. Conducting security checks, vetting and due diligence on operators, shareholders and staff; 
3. Establishing a real-time monitoring system for gambling transactions; and 
4. Coordinating research on the socio-economic impacts of gambling. 

The Authority also enjoys inspection and enforcement powers, including the ability to enter premises, seize gambling machines, and demand production of records. 

Licensing Requirements 

A central feature of the Act is the new licensing regime which covers virtually every aspect of gambling. The following key requirements apply to all applicants: 

1. The applicant must be a body corporate in which at least 30% of the shares are held by Kenyan citizens; 
2. The applicant must maintain a bank account in a licensed financial institution in Kenya into which all gambling proceeds are paid; 
3. Applicants must demonstrate adequate gambling capital and lodge an insurance bond or bank guarantee in accordance with the Third Schedule; and 
4. Applications must be accompanied by comprehensive documentation, including incorporation documents, audited accounts, technical specifications (for online platforms), and declarations on beneficial ownership. 

Licences are generally valid for 36 months unless otherwise prescribed. Counties retain the power to issue trade permits for gambling premises, meaning operators must secure both a national licence and a county permit before commencing business. 

Regulation of Online Gambling 

For the first time, the law comprehensively addresses online gambling. Operators must obtain a specific licence for online activities such as virtual games, online casinos, and digital betting. 

Key obligations include: 

1. Registration of players with verified identification; 
2. Maintenance of segregated player accounts, ensuring that customer funds remain ring-fenced from operational accounts; 
3. Integration with the Authority’s real-time monitoring system to enable oversight of online transactions; 
4. Compliance with Kenya’s Data Protection Act, anti-money laundering laws, and cybersecurity requirements; and 
5. A prohibition on unlicensed foreign operators unless they are registered locally and meet all Kenyan regulatory requirements. 

These measures ensure greater transparency and consumer protection while also preventing illicit financial flows. 

Consumer Protection and Responsible Gambling 

The Act places a strong emphasis on safeguarding vulnerable persons and promoting responsible gambling. It requires operators to: 

1. Put in place self-exclusion mechanisms that allow problem gamblers to bar themselves from participation; 
2. Refrain from offering inducements or extending credit to players; 
3. Adopt responsible advertising practices that do not target minors or vulnerable individuals; and 
4. Ensure fair play by subjecting equipment and platforms to certification and periodic testing. 

 

These provisions are designed to minimise the social harms associated with gambling while still permitting regulated forms of the activity. 

Security Deposits and Financial Obligations 

The Act obligates operators to provide significant financial security as a safeguard for their commitments to both players and the regulator. This security must be furnished in the form of either a security bond or a bank guarantee, as stipulated under the Third Schedule to the Act. Specifically, these include: 

Types of Gambling  | Amount in Kes. 
Casinos including public Gambling for  conducting tables and slots machines    | 20,000,000/= 
Online Gambling   | 100,000,000/= 
National Lottery  | 100,000,000/= 
Totalisator  | 5,000,000/= 
Prize Competition  | 5,000,000/= 
Non-online Gambling including non-online bookmakers, non-online casinos, non-online lotteries  | 20,000,000/= 
Amusement with prizes  | 200,000/= 
A premise or a shop operating under a licence of online Gambling including online bookmaker, online casino and online lottery  | 500,000/= 

These deposits are forfeitable upon conviction for certain offences, making financial compliance a critical issue for all operators.  

Offences and Penalties 

The Act introduces stiff penalties for non-compliance. Offences include operating without a licence, making false declarations, failing to keep proper books, and conducting unlawful lotteries or advertisements. 

Sanctions may involve: 

1. Fines ranging from KShs 1 million to 20 million; 
2. Imprisonment terms for up to 20 years; 
3. Forfeiture of licences, securities and gambling equipment; and 
4. Disqualification from holding a licence for up to five years. 

Corporate liability is also expressly recognised, meaning directors and senior managers could face personal exposure for offences committed by their companies. 

Transitional Provisions 

The Betting, Lotteries and Gaming Act (Cap. 131) has been repealed. However, existing licences issued under the old law will remain valid until expiry. Once they lapse, holders must apply for new licences under the Gambling Control Act, 2025. 

All assets, liabilities and employees of the former Betting Control and Licensing Board are transferred to the new Authority. This ensures regulatory continuity while transitioning into the new regime. 

Implications for Operators 

For existing operators, the enactment of this law necessitates an urgent review of business structures and compliance systems. Immediate steps should include: 

1. Assessing ownership structures to confirm compliance with the 30% Kenyan shareholding rule; 
2. Reviewing capital adequacy and preparing to deposit the required security; 
3. Aligning online platforms with the monitoring, segregation, and reporting requirements; 
4. Applying for county trade permits in addition to national licences; and 
5. Updating internal compliance manuals on AML, data protection, and responsible gambling. 

Conclusion 

The Gambling Control Act, 2025 represents a significant shift in Kenya’s regulatory landscape. It modernises the legal framework, strengthens oversight, and imposes higher standards of accountability on operators. 

Operators who act early to restructure ownership, secure the necessary security deposits, and upgrade their compliance systems will be best positioned to thrive under the new regime. 

How We Can Help 

At CM Advocates LLP, we are already assisting clients with: 

1. Structuring to meet the Kenyan ownership requirement; 
2. Preparing licence application packs and county permit applications; 
3. Drafting compliance policies for AML, data protection, and advertising; and 
4. Representation before the Gambling Regulatory Authority and the Gambling Appeals Tribunal. 

We provide stakeholders in the gambling sector with tailored advice and compliance support as Kenya transitions into this new regulatory framework. If you would like to consult, reach out to us through our contacts below. 

Head Office Nairobi 

I&M Bank House, 7th Floor, 

2nd Ngong Avenue, Nairobi, 

Email: law@cmadvocates.com   

Mombasa Office 

Links Plaza, 4th Floor, 

Links Road, Nyali, Mombasa, 

Email: mombasaoffice@cmadvocates.com