Betting firms that entice addicted gamblers to lose licences

Betting

The newly published regulations require betting firms to establish automated systems that reject deposits made by self-excluded punters throughout the exclusion period.

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Betting firms that entice addicted punters who have sought to be barred from gambling risk having their licences revoked under new regulations aimed at curbing the country's gambling craze.

The newly published regulations require betting firms to establish automated systems that reject deposits made by self-excluded punters throughout the exclusion period. The firms are also prohibited from sending promotional betting messages to gamblers who have opted for self-exclusion.

Under the Gambling Control (Conduct of Gambling Operations) Regulations, 2026, punters will be allowed to apply for self-exclusion for a minimum of six months. The exclusion period cannot be revoked or shortened before it expires.

In many developed economies, self-exclusion is designed to protect gamblers from financial ruin and the addictive nature of betting. During the exclusion period, they are unable to deposit money into their accounts or place bets.

In Kenya, betting has been identified as a major financial risk, with many gamblers borrowing money to finance their habit or neglecting responsibilities such as meeting the daily needs of their dependants.

"A licensee who accepts a wager from a self-excluded person shall be liable to suspension or revocation of licence for repeated violations," the regulations, gazetted on June 29, 2026, state.

In countries such as the United Kingdom, betting firms risk losing their licences if they fail to honour requests for self-exclusion or continue sending promotional material during the exclusion period.

Self-exclusion, also known as a "cooling-off period", is intended to reduce or prevent the devastating effects of problem gambling, including financial losses, debt, bankruptcy and mental health crises.

Additionally, the Gaming Regulatory Authority of Kenya (GRAK) is expected to establish a centralised register by the end of the year containing details of all gamblers who have opted for self-exclusion.

All betting firms will have free, real-time access to the register, which will contain details such as the gamblers' names and the duration of their self-exclusion.

"The Authority shall keep and maintain a secure register of persons excluded from gambling activities. The register shall contain the details of each excluded person, including..." the regulations state.

Gamblers listed in the self-exclusion register will not be allowed to place bets, open accounts or receive promotional gambling material from the relevant betting firm.

Kenya is introducing the new regulations in an effort to stem a gambling craze that has persisted despite increased taxation on both punters and betting firms.

The introduction of a 12.5 percent excise duty on betting stakes and a further 20 percent withholding tax on winnings has failed to deter gamblers.

Betting firms, meanwhile, pay a 15 percent tax on gross gaming revenue, a 30 percent corporation tax on profits and a 16 percent income tax.

Kenya has the highest proportion of gamblers in Africa, ahead of larger economies such as South Africa and Nigeria.

According to a 2024 survey by the Central Bank of Kenya, punters in urban areas spent an average of Sh2,125 a month on betting, compared with Sh1,481 among those in rural areas.

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