Betting companies that fail to pay winners on time could face hefty financial penalties and possible licence suspension under proposed regulations designed to tighten oversight of Kenya’s gambling industry.
The draft regulations, developed to operationalise the Gambling Control Act, 2025, require operators to settle winnings within 14 days. Failure to do so would attract a penalty equivalent to 5 per cent of the outstanding amount, payable to the Gambling Regulatory Authority (GRA).
If the delay continues, operators would also be required to pay the winner the outstanding amount plus interest at 5 per cent per day for up to 21 additional days. Continued non-compliance could ultimately lead to suspension of the operator’s licence.
The regulations establish the framework for the newly created Gambling Regulatory Authority, granting it broad powers to license, inspect, audit, suspend and revoke operators across all gambling segments, including casinos, bookmakers, lotteries, bingo, online betting platforms, jackpots and pool betting.
Before launching operations, gambling firms would be required to satisfy an extensive compliance checklist. At least seven days before commencing business, operators must notify the regulator and demonstrate compliance with 18 licensing conditions, including integration with tax systems and the Authority’s central monitoring platform, proof of sufficient operating capital, certification of gaming equipment, fit and proper assessments for directors, and compliance with data protection requirements.
Online platforms would also be required to operate under approved domain names, implement geolocation technology to block access from prohibited jurisdictions, maintain encrypted audit trails, separate customer funds from operational accounts, and provide the regulator with real time monitoring access through application programming interfaces. Player data would generally be required to remain on servers located in Kenya unless the regulator grants an exemption.
Operating an online gambling platform without regulatory approval would become a criminal offence punishable by a fine of up to KSh1 million, imprisonment for up to six months, or both.
The proposed rules also introduce stronger responsible gambling measures. Operators would be required to offer customers spending, deposit and session limits, reality check reminders, self exclusion tools, links to the national exclusion register, and player savings features.
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Individuals would be able to voluntarily exclude themselves from gambling for periods of six months, one year, two years or indefinitely. Operators found accepting bets from self excluded individuals would be required to refund all stakes, surrender any winnings to the regulator, and could face suspension or revocation of their licences.
Advertising restrictions would also be tightened. Gambling advertisements would be prohibited from targeting minors or vulnerable groups, portraying betting as a solution to financial hardship, or appearing in media where more than 25 per cent of the audience is underage. Betting advertisements and licensed gambling premises would also be banned within 200 metres of schools and other educational institutions.
The draft regulations further require lottery operators to dedicate a significant share of their revenues to charitable causes. While one provision requires at least 25 per cent of gross lottery proceeds to support charitable initiatives, another specifies that charitable allocations should range between 30 and 45 per cent of gross revenue. Operators would also be required to disburse these funds monthly and submit utilisation reports, with the Gambling Regulatory Authority overseeing beneficiary selection and monitoring funded projects.
The proposals also establish clear timelines for verifying and paying winnings. Prizes of up to KSh500,000 would qualify for immediate automated payment after basic identity checks. Winnings ranging from KSh500,001 to KSh5 million would require enhanced ownership and anti money laundering verification and be processed within five working days.
Payouts between KSh5 million and KSh50 million would be completed within 14 working days following enhanced due diligence, while jackpot prizes exceeding KSh50 million could take up to 30 working days after verification and may include structured payment arrangements alongside financial counselling.
The proposed regulatory framework aims to strengthen oversight of Kenya’s rapidly growing gambling sector, which has increasingly come under scrutiny over concerns about addiction, household debt, financial distress and school dropouts. It also seeks to reinforce the country’s anti money laundering framework by increasing scrutiny of a cash intensive industry as Kenya works towards exiting the Financial Action Task Force grey list.
