Kenya is poised for a significant transformation in its gambling sector as the Kenya Gambling Control Bill 2023 makes its way through parliament. The proposed legislation is set to establish a new Gambling Regulatory Authority, replacing the existing Betting, Control and Licensing Board (BCLB). The bill's primary objectives encompass the regulation of various forms of gambling, including betting, casinos, prize competitions, public lotteries, and media promotions.
A key highlight of the bill is its strong emphasis on player protection. It introduces rigorous measures to combat unlicensed and underage gambling, including the prohibition of children's registration for any gambling activity and the imposition of a minimum bet limit to discourage irresponsible gambling behavior. Additionally, the legislation restricts the airing of gambling advertisements during specific hours on radio and TV to shield vulnerable groups from excessive gambling exposure.
To bolster local participation and ensure economic benefits remain within the country, the bill mandates that all licensed operators must have a minimum of 30% shares held by Kenyan citizens. The regulatory framework also requires transactions to be facilitated through a Kenyan-registered bank.
In terms of taxation, the bill proposes a shift from the previous controversial 7.5% tax on betting stakes to a 15% tax on gross gambling revenue. Furthermore, it introduces a monthly gambling levy determined by local counties, offering a more stable and predictable revenue stream for the government.
Kenya's approach to gambling regulation, as reflected in the Gambling Control Bill 2023, serves as a noteworthy reference for other nations considering regulatory reforms. Brazil, for instance, recently approved online gambling, opting for a tax structure with a 12% tax on gross gaming revenue (GGR) paid by gambling firms and a 15% tax on net winnings exceeding a certain threshold, to be paid by players. This tax structure is designed to include online casino games and aligns with Brazil's goal of balancing economic benefits with responsible gambling measures.
The differing taxation models in Kenya and Brazil offer insights into how nations can tailor their gambling regulations to achieve specific economic and social objectives. While Kenya prioritizes gross gambling revenue and local participation for sustainable economic development, Brazil's emphasis on net winnings requires vigilant monitoring to prevent problem gambling. The Kenya Gambling Control Bill 2023 stands as a forward-thinking legislation, setting a benchmark for responsible gambling, player protection, and economic growth in the evolving landscape of global gambling regulations.
By fLEXI tEAM
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