Sports Betting Regulation in Kenya: The Rise of Gambling, Taxation, and the New Gambling Control Act 2025

Sports betting in Kenya has exploded into a multi-billion shilling industry attracting millions of participants, particularly young people aged 18 to 35 who wager on football, basketball, and virtual games through mobile platforms. The total amount staked in Kenya's betting and gambling sector reached KES 75.18 billion between July 2024 and March 2025 — a 17 percent increase from the previous period — while the government collected KES 9.97 billion in excise duty, up 24 percent. With the landmark Gambling Control Act 2025 enacted in August 2025, Kenya is entering a new regulatory era that promises tighter oversight, new consumer protections, and a transformed taxation framework.

The Gambling Control Act 2025

The Gambling Control Act 2025, assented to by President William Ruto on 20 August 2025, represents the most comprehensive overhaul of Kenya's gambling regulation since independence. The Act establishes the Gambling Regulatory Authority of Kenya (GRA), replacing the Betting Control and Licensing Board (BCLB) that had regulated the industry since 1966. The transition from BCLB to GRA is expected to be completed by February 2026, with the new authority having broader powers to license, monitor, enforce compliance, and protect consumers.

Key provisions of the Act include mandatory contributions by bettors to the Social Health Insurance Fund (SHIF) and a mandatory pension savings component — requirements designed to ensure that gambling activity contributes to social welfare rather than undermining it. The Act also introduces stricter licensing requirements for operators, enhanced responsible gambling obligations, and improved mechanisms for addressing problem gambling and addiction.

Taxation Framework: From Winnings Tax to Wallet-Flow System

Kenya's betting taxation has undergone significant changes under the Finance Act 2025. The previous system imposed a 20 percent withholding tax on net winnings and a 15 percent excise duty on stakes at the point of wagering. The new framework replaces these with a 5 percent tax on player withdrawals from betting accounts and a 5 percent excise duty on deposits made from mobile wallets to betting accounts.

This "wallet-flow" system taxes money entering and leaving betting accounts rather than taxing individual wagers or winnings. The Parliamentary Budget Office projects this approach will double gambling tax revenue from approximately KES 5.4 billion to KES 11.4 billion in the 2025/26 financial year. Critics argue that the new system disproportionately affects casual bettors who frequently deposit and withdraw small amounts, while the reduced rates from 15 to 5 percent on excise duty effectively make it cheaper to place bets — potentially encouraging more gambling activity.

Major Betting Companies in Kenya

Kenya's betting market is dominated by a handful of major operators. Betika has emerged as the market leader with the largest user base, offering sports betting, casino games, and virtual sports through its mobile platform. SportPesa, once Kenya's dominant operator before a high-profile tax dispute led to its temporary exit in 2019, has returned and rebuilt its market position. Odibets targets mass-market bettors with low minimum stakes and mobile-first design, while Betway and MozzartBet compete with comprehensive sports coverage and competitive odds.

The number of licensed betting firms in Kenya has doubled to approximately 200, reflecting both the industry's profitability and the relatively accessible licensing framework. However, a few operators — Betika, SportPesa, Odibets, and Mozzart — dominate in terms of profitability and market share, with the long tail of smaller operators competing for niche segments including casino games, lottery, and virtual sports.

Advertising and Marketing Restrictions

In May 2025, the BCLB introduced strict advertising guidelines that significantly restrict how betting companies can market their services. The new rules ban celebrity and influencer endorsements in betting advertisements, require pre-approval of all advertising materials by the regulator before publication, and prohibit advertising near schools, religious sites, and other sensitive locations. These restrictions address growing concerns that aggressive marketing — particularly through social media influencers and sports sponsorships — was normalizing gambling among young people.

Operators must also include prominent responsible gambling messages in all advertising, display information about gambling helplines and support services, and avoid promotional tactics that minimize the risks of gambling or create unrealistic expectations of winning. The shift toward stricter advertising regulation mirrors global trends in mature gambling markets like the United Kingdom and Australia.

Problem Gambling and Youth Protection

The prevalence of problem gambling, particularly among Kenya's youth, is a growing public health concern. Most gamblers in Kenya are aged 18 to 35, including university and college students who fund betting through personal income, family support, and even digital loans. Reports of financial distress, family breakdown, and in extreme cases suicide linked to gambling losses have prompted calls for stronger intervention. The Ministry of Health and various NGOs have warned of a gambling addiction epidemic, though comprehensive prevalence data remains limited.

The Gambling Control Act 2025 addresses these concerns through mandatory responsible gambling features on all platforms, self-exclusion mechanisms allowing problem gamblers to ban themselves from betting, limits on advertising frequency and content, and requirements for operators to fund problem gambling treatment and support services. The mandatory SHIF contribution for bettors also serves a dual purpose — ensuring that gambling participants contribute to health coverage that may eventually be needed for addiction treatment.

Compliance Requirements for Operators

Licensed operators face increasingly stringent compliance obligations. In March 2025, the BCLB issued mandatory requirements for aviator and crash games — rapidly growing game categories — requiring operators to resubmit detailed documentation about game mechanics, algorithms, Random Number Generator certifications, and provider licensing within 14 days. This intervention responded to concerns about the fairness and transparency of these games, which are particularly popular among younger bettors.

Operators must maintain robust Know Your Customer (KYC) systems to verify that all registered bettors are at least 18 years old, implement anti-money laundering controls, maintain adequate financial reserves to pay winnings, and submit regular compliance reports to the regulator. Failure to comply can result in licence suspension, fines, or permanent revocation of operating licences.

The Future of Betting Regulation in Kenya

As the GRA takes over from the BCLB, Kenya's gambling regulatory framework is expected to continue evolving. Priority areas include developing comprehensive regulations for online casino games and virtual sports, establishing a national problem gambling strategy with dedicated funding, implementing technology standards for platform security and game fairness, and creating a unified licensing portal that streamlines the application and renewal process for operators while maintaining rigorous vetting standards. The balance between generating government revenue from a thriving industry and protecting vulnerable populations from gambling harm will remain the central tension in Kenya's betting regulation for years to come.