The Kenyan gaming and lottery industry faces dramatic shifts as the Cabinet issues two new bills. The Cabinet approved the Gambling Control and National Lottery Bill of 2023.
Punters are now mandated to save with bets to deter reckless and irresponsible gaming and transform the industry.
“In addressing the growing vice of irresponsible gambling and betting (gambling culture), and the socio-economic challenges that result from the menace, the nation’s top policy organ considered and approved the Gambling Policy, 2023; the Gambling Control Bill, 2023; and the National Lottery Bill, 2023” – Kenyan Cabinet official statement.
These parliamentary initiatives are currently set for further examination and potential passage. As they move through the legislative council, they are expected to bring about a significant revolution within the industry.
The Gambling Policy (2023), which serves as the foundation of this reform, aims to reshape gambling into a tool for societal advancement while promoting ethical gaming activities.
A significant aspect of this proposed bill is its creative way to promote savings in the industry, as it mandates punters to save a part of their winnings with each wager. This approach resonates with the administration’s overarching plan to strengthen fiscal responsibility and citizen security.
However, this adjustment can be a further financial burden for punters as there is already a 7.5 percent tax deduction on wagered amounts and a 20 percent tax deduction on profits.
Also, betting businesses are subject to a 15 percent tax rate. The administration maintains a fine line between fostering responsible gaming among bettors and maintaining the fiscal progress of the gaming industry.
The success of this new policy will signal a shift in Kenya’s approach to managing the lottery and gaming ecosystem.