Sh50 million capital, ID selfies among proposals as Kenya moves to rein in betting boom

Anyone wishing to register on a betting platform in Kenya may soon be required to take a photo of themselves holding their national ID, as the Betting Control and Licensing Board (BCLB) moves to enforce tougher rules aimed at reducing the number of betting companies and tackling underage gambling.

BCLB Director Peter Mbugi, while addressing the National Assembly’s Departmental Committee on Finance and Planning on Tuesday, said the Board is proposing a sharp increase in minimum capital for licensing, alongside stricter operational requirements, to limit casual and speculative entries into the sector.

“For a small-scale betting shop (Muaka), we are proposing a minimum capital investment of Sh50 million. For public gaming operators such as casinos, the proposal is to raise the requirement to Sh5 billion,” Mbugi told the committee chaired by Kitui Rural MP David Mboni.

Mbugi explained that the goal is to filter out unserious players and ensure only financially capable firms can operate in the market, while protecting consumers from exploitative or unregulated services.

He added that online betting companies and national lottery operators would need to prove access to at least Sh200 million in capital under the proposed changes.

The committee heard that in 2024 alone, BCLB had licensed 236 betting companies, a number that has sparked concern over the unchecked growth of the sector. Mbugi also noted that BCLB and the Communications Authority of Kenya flagged down 106 additional gambling websites during the same period.

Currently, firms pay Sh10,000 as application fees, while license fees range from Sh400,000 for small operators to Sh1 million for larger ones. Homa Bay Town MP Peter Kaluma backed the move to increase the capital requirement, blaming the low fees for the mushrooming of betting firms lacking capacity.

“The concern is not just about revenue, but also the public good versus public harm. We need to ensure that gambling is not contributing to societal decay,” Kaluma said.

To address access by minors, BCLB plans to make it mandatory for new gamblers to take a picture of themselves with their ID during registration. This follows complaints that some underage users have been using their parents’ identification to gain access to betting platforms.

The committee also sought clarification on the software used by betting companies, including the popular Aviator platform. Mbugi said that in many cases, the software is sourced from third parties and that such relationships will be carefully reviewed to ensure tax compliance.

MPs expressed growing concern over the social costs of gambling, including addiction, poverty, and increased exposure of young people to betting content.

Mbugi acknowledged that existing regulations are outdated, especially the Betting, Lotteries and Gaming Act of 1966, which he said no longer meets the needs of the fast-changing gambling industry. He said the new proposals are part of broader efforts to modernise the sector and bring it under tighter control.