Kenya has taken a leap into a new era of gambling regulation with enactment of the Gambling Control Act, 2025. This sweeping overhaul replaces the Betting, Lotteries and Gaming Act, CAP 131, which had obtained since 1966.
In a market now estimated at Sh200 billion annually and employing tens of thousands directly and indirectly, the stakes could not be higher.
The law recognises the realities of a rapidly evolving gaming landscape, introducing structural, financial and consumer focused reforms that aim to position Kenya as a leader in responsible gambling regulation.
While the regulatory overhaul offers clarity and alignment with global best practice, it also introduces barriers that could reshape the competitive landscape, for better or worse.
At the heart of the Act is the replacement of the Betting Control and Licensing Board with a modern Gambling Regulatory Authority which will be established as a state corporation with greater operational and financial independence and a Gambling Appeals Tribunal to resolve disputes.
The authority will oversee the entire sector, while the tribunal will hear appeals from national or county governments. This restructuring promises more consistent regulatory decisions, faster licensing and a more predictable business environment.
A notable shift is the formal recognition and licensing of modern forms of gambling that were previously outside the scope of the old law.
Online gambling, software provision, equipment manufacturing and even nationwide promotional campaigns with prizes will now fall under explicit licensing categories.
Under the old regime, such activities operated in regulatory grey areas, forcing operators to seek ad hoc approvals. The new framework closes these gaps, providing clarity for operators and aligning Kenya’s gambling laws more closely with international best practice.
The Act also tightens financial requirements. While specific licence fees will be set in subsidiary legislation, it introduces a substantial Sh100 million security requirement for online operators, to be provided as a bank guarantee or insurance bond.
This is intended to ensure that only financially sound operators enter the market, protecting players and the integrity of the sector.
However, such a high barrier could lock out smaller, innovative players, potentially reducing competition and limiting the sector’s economic diversity.
Ownership rules have also changed. For the first time, gambling operators must have at least 30 percent Kenyan ownership. This is clearly aimed at promoting local economic participation and ensuring that a fair share of profits, jobs and tax contributions remain within the country.
The impact, however, will depend on how attractive the market remains to foreign investors, who may be reluctant to cede equity.
The Gambling Control Act, 2025, is not merely a legal update, it is a recalibration of Kenya’s gambling industry to meet modern realities. Its emphasis on regulatory independence, consumer protection and revenue transparency could make Kenya a continental model.
Yet, the reforms also set a higher bar for entry and continuity. High financial thresholds, mandatory local ownership, expanded licensing categories and stricter advertising rules mean the operating environment will be far more demanding than before.
The real test lies in implementation. If executed with balance, the Act could deliver a more responsible, transparent and competitive gambling sector, one that generates jobs, attracts investment and protects consumers.
If poorly managed, it risks entrenching a tightly controlled market that benefits only a few large operators while stifling innovation and limiting broader economic contributions.
The message is clear: the Act is both an opportunity and a compliance test. Success will require more than capital; it will demand robust due diligence, early alignment of ownership structures, timely financial guarantees and preparedness for longer licensing cycles.
For policymakers, Kenya’s model will be closely watched across Africa, with its successes and shortcomings likely to influence the next wave of gambling reforms on the continent.
Consumer protection is another strong focus. The Act codifies restrictions on gambling advertising, including a ban on celebrity endorsements and stricter airtime controls moving existing Betting Control and Licensing Board guidelines into enforceable law.
It also formalises the use of electronic monitoring systems linked to the Kenya Revenue Authority to track revenues and ensure compliance.
With gambling addiction rates in Kenya estimated at around 13% among active gamblers, one of the highest in Africa, these measures are timely and necessary.
On the operational side, the Act increases the licensing period for gambling operators from one year to 36 months. This enhances regulatory stability, reduces administrative burdens and gives operators more certainty for long-term investment planning. It also frees up regulatory capacity to focus on oversight rather than paperwork.
When the Act takes effect, all functions, assets and obligations of the BCLB will transfer to the new Gambling Regulatory Authority.
Existing licences will remain valid until expiry, ensuring continuity while allowing for a smooth transition to the new framework.
The writer is the managing director of Velex Advisory Kenya
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