Kenya’s proposed gambling regulation would penalize operators that fail to pay winners within 14 days, as the government tightens financial, technical and consumer safeguards under the Gambling Control Act, 2025.
A licensee would pay the Gambling Regulatory Authority a penalty equal to 5% of the outstanding winnings, while the winner would be entitled to the unpaid amount plus interest accruing at 5% a day for the next 21 days. Continued non-payment could trigger licence suspension.
Prizes of up to KSh500,000 would qualify for immediate automated payment after basic identity checks, while winnings of KSh500,001 to KSh5 million would be processed within five working days after additional ownership and anti-money laundering checks.
Payments of KSh5 million to KSh50 million would take up to 14 working days after enhanced verification, while jackpots above KSh50 million could take up to 30 working days and may involve structured payouts and financial counselling.
The regulations would give the new Gambling Regulatory Authority powers to license, inspect, audit, suspend and revoke casinos, bookmakers, lotteries, online platforms, bingo, jackpots and pool-betting operators.
Firms would have to meet 18 conditions before opening, including tax and central-monitoring integration, adequate gaming capital, equipment inspection, director clearance, data protection certification, approved domains, geolocation controls, encrypted audit logs, segregated customer funds and real-time regulatory access.
Player data would generally have to be stored in Kenya, while unapproved online operations could attract a fine of up to KSh1 million, six months’ imprisonment or both.
Operators would also be required to offer betting limits, session alerts and self-exclusion periods ranging from six months to indefinite exclusion. Accepting bets from excluded players would require stake refunds, forfeiture of winnings to the Authority and possible licence sanctions.
Advertising targeting minors or presenting gambling as a remedy for financial hardship would be prohibited, alongside gambling premises and advertisements within 200 metres of schools.
The draft contains differing charitable allocation thresholds, requiring at least 25% of gross lottery proceeds in one provision and between 30% and 45% of gross revenue in another, as authorities seek stronger consumer protection and anti-money laundering oversight.
