Kenya’s Parliament is set to overhaul gambling regulations by increasing the security deposit for online betting firms from KSh 250,000 to KSh 100 million. The move aims to protect gamblers, strengthen oversight, and promote a safer gaming ecosystem.
Why the Change?
The proposed amendment to the Gambling Control Bill 2023 introduces a dramatic shift in how online gambling firms operate in Kenya. Legislators seek to increase the security deposit required from betting companies from KSh 250,000 to KSh 100 million—a 400-fold increase aimed at improving consumer protection.
The deposit will be held as a bank guarantee, ensuring that in the event of a firm’s collapse or refusal to pay winnings, punters are financially protected. Banks will cover player losses if a company fails, significantly reducing risk to consumers.
Balancing Stringency with Sustainability
Initially, a KSh 200 million figure was floated by the Betting Control and Licensing Board (BCLB) and lawmakers. However, this was scaled down to KSh 100 million after Senators raised concerns that the higher figure could force smaller, yet legitimate, firms out of business.
The joint parliamentary committee eventually agreed that KSh 100 million strikes the right balance—demanding accountability while preserving healthy competition in the market.
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A Growing Industry in the Spotlight
Kenya’s betting industry has seen rapid growth, with 226 licensed online betting firms in 2025—up from fewer than 100 just a few years ago. This growth, while economically significant, has triggered calls for stronger regulation due to rising cases of addiction, underage gambling, and questionable payout practices.
The proposed reforms seek to close loopholes, enforce financial discipline, and build public trust in the industry.
What It Means for Betting Firms
If passed, the new law will force all betting operators to:
- Secure a KSh 100 million bank guarantee
- Undergo stricter financial vetting
- Demonstrate capacity to cover customer winnings
- Comply with enhanced regulatory obligations
Firms unable to meet these conditions will likely exit the market, consolidating the industry around stronger, better-managed players.
Additional Provisions in the Gambling Control Bill
The bill doesn’t stop at financial regulations. Other key measures include:
- Fines of up to KSh 20 million for non-compliant firms
- Jail terms of up to 20 years for serious violations
- Stricter advertising and public messaging rules
- Better safeguards to address problem gambling and addiction
These efforts are designed to modernize Kenya’s gambling landscape and align it with international best practices.
Conclusion
Additionally, the proposed KSh 100 million security deposit marks a turning point for Kenya’s online betting industry. It signals a shift from fast, easy entry to a more robust, transparent, and consumer-protective ecosystem. For punters, it offers stronger safeguards. For firms, it raises the bar—ushering in an era of credibility, accountability, and long-term sustainability.
