The Gambling Control Act, 2025 (Act No. 14 of 2025) (“the Act”) was signed into law on 7 August 2025 and took effect on 20 August 2025. It replaces the Betting, Lotteries and Gaming Act (Cap. 131). This new law creates an updated system for regulating gambling in Kenya, keeping up with changes in technology, especially online gambling. It also aims to protect consumers and reduce social harm. By modernising the legal framework, the Act seeks to strike a balance between enabling a regulated gambling market and protecting the public from the consequences of unchecked gambling.
WHO IS THE REGULATORY AUTHORITY UNDER THE NEW ACT
The Act establishes the Gambling Regulatory Authority (“GRA”) as Kenya’s central gambling regulator. Section 6 of the Act provides for the GRA to take over all licensing, supervisory, enforcement, research, and policy roles previously handled by the Betting Control and Licensing Board (“BCLB”).
The key functions of the GRA include:
- Licensing and regulating all gambling activities both land-based and online
- Conducting due diligence on shareholders, board of directors, beneficial owners and management
- Monitoring gambling activity across platforms
- Approving gambling equipment and technology systems
- Leading responsible gambling programmes and social harm mitigation
The establishment of the GRA marks a shift towards a more structured and professionalised regulatory framework, equipping the sector with stronger investigative tools and more robust enforcement powers.
WHAT ARE THE CATEGORIES OF LICENCES COVERED UNDER THE NEW ACT?
Section 28 (1) of the Act states that a person shall not offer any gambling activity or service unless the activity or services is licensed under the Act. Subsection (2) of the same section goes on to list gambling activities that the GRA shall issue licences for as follows:
- Public gambling for conducting a table game and operating a slot machine;
- A national lottery
- Bookmaking
- On-the course and off-the course totalisators
- Prize competition
- Bingo
- Pool betting scheme
- Public lotteries
- Online gambling
- Prize competitions
CAN GAMBLING COMPANIES BE FULLY FOREIGN-OWNED UNDER THE ACT?
While foreigners are allowed to participate in the gambling sector in Kenya, they are not permitted to fully own a gambling company. Section 29 (a) introduces minimum local ownership requirements with at least 30% of shares to be held by Kenyans.
WHAT OTHER REQUIREMENTS MUST FOREIGNERS COMPLY WITH IN ORDER TO OBTAIN THE LICENCE?
In addition to ensuring a minimum 30% shareholding by Kenyans, the Act in Section 79 provides that a foreign-based gambling company must do the following:
- Must be incorporated in Kenya;
- Must have a physical address registered in Kenya
- Provide its audited books of account for the preceding year.
From the above, it is clear that the Act has abolished an era where foreign companies penetrated Kenya via provision of online gaming services without obtaining any operational permit or licence. Section 79 (3) of the Act, makes it an offence for foreign based gambling operators to provide online gambling services in Kenya without a licence.
It is important to state that the requirement under Section 29 (a) of the Act for a minimum 30% shareholding by Kenyans does not apply to foreign based companies that want to only operate online gambling platforms.
ARE EXISITING LICENCE HOLDERS REQUIRED TO APPLY FOR A NEW LICENCE UNDER THE LAW?
Under the Transition Provisions of the Gambling Control Act, 2025, all licences previously issued by the Betting Control and Licensing Board (BCLB) will continue to remain valid only for the unexpired portion of their current licence term. However, these legacy licence holders are required to comply with the provisions of the new Act and any regulations issued by the GRA moving forward.
This means that although operators are not immediately stripped of their BCLB-issued licences, continued operation is conditional upon meeting all new statutory obligations, including compliance with enhanced licensing requirements, ownership structure and thresholds, security guarantees, technical standards, reporting obligations, and responsible gambling measures introduced under the new regulatory framework.
In essence, the Act allows a transitional runway but does not exempt legacy operators from alignment with the new regime.
WHAT ARE THE REQUIREMENTS FOR OBTAINING THE LICENCE UNDER THE NEW REGIME?
The requirements for obtaining the Gambling licence under the Act are as follows:
- The applicant must be a body corporate
- The ownership structure must allot at least 30% of the companies shares to Kenyan citizens where the company is owned by foreigners.
- The company must maintain an account with a licensed/authorized financial institution in Kenya and all gambling-related monies must flow through this account.
- Evidence of payment of the application fee
- Evidence of “prescribed gambling capital” (i.e., sufficient financial strength).
- An insurance bond or bank guarantee.
- Information about how close the proposed gambling premises are to a learning institution.
- Declarations (per the Act’s schedule), including a “good causes” declaration and a proposed budget for those causes. (“Good causes” generally refers to socially beneficial causes or contributions.)
- Such other information as the Authority may require to assess the application.
Specific Requirements for Online-Gambling
Additional requirements for online licences are as follows:
- Applicants for online licences must submit a proposed gambling control system to the GRA. The gambling control system must cover the following:
- Data/Information security
- Fraud and anti-money laundering controls,
- Protection against underage gambling
- Responsible advertising,
- Consumer protection
- Data protection in line with Kenya’s Data Protection Act.
- To assist with real-time monitoring, the applicant must provide information about its servers’ location and capacities, the architecture of its platform, and network connectivity.
- For mobile gambling, the operator must provide evidence of two different mobile-network links.
- There must be a physical location that will serve as a customer care centre in Kenya to handle players’ complaints / issues
Gambling Machines / Equipment (if applicable)
- If the licence involves gaming machines, the machines must be from a certified source with international standards.
- Imported machines must have a certificate from the GRA specifying the model and functions.
ARE THERE ADDITIONAL PERMITS REQUIRED AFTER OBTAINING THE GAMBLING LICENCE?
In addition to the national licence, Section 45 of the Act states that the operator must apply for a trade permit from the relevant county government for the premises. That application will require the national licence, the county-prescribed fee, and other information. The county government will issue the permit after confirming that the premises is suitable for the gambling business. This permit issued by the county government is valid for a period of 12 months after which the holder of the permit will be required to apply for a renewal of the permit.
WHAT IS THE DURATION OF THE LICENCE?
Section 31 (3) of the Gambling Control Act provides that the licence under the Act shall be valid for a period of 36 months which begins to count from the date of issue.
The renewal of the licence is not automatic. It is done upon the submission of an. Application for licence renewal along with evidence of payment of the prescribed fee. Please note that the application for licence renewal must be submitted three months before the expiration of the current licence.
WHAT OTHER KEY CHANGES CAN BE FOUND IN THE NEW REGIME?
- Enhanced Consumer Protection and Responsible Gambling Measures
The Gambling Control Act, 2025 introduces significantly strengthened consumer protection safeguards, marking a major shift from the former BCLB regime. Under the new framework, operators are now subjected to mandatory responsible gambling obligations designed to protect vulnerable players and promote safer gambling environments.
Key measures include:
- Mandatory Responsible Gambling Programs: Operators must implement structured programs that educate players on the risks associated with gambling and provide continuous awareness campaigns.
- Self-Exclusion Mechanisms: The Act requires operators to establish easily accessible self-exclusion systems, enabling players to voluntarily restrict their gambling activities for a selected period. Operators must also maintain and enforce a centralized exclusion register.
- Strict Advertising and Marketing Standards: All marketing communications must be responsible, non-misleading, and must not target minors or vulnerable groups. The Act further introduces limitations on promotional inducements to ensure they do not encourage excessive gambling.
- Protection of Vulnerable Persons: Operators must adopt tools and internal controls designed to detect problematic gambling patterns and intervene appropriately. This includes setting betting limits, implementing age-verification systems, and monitoring high-risk behavior.
- Data and Information Security: Secure storage, transmission, and processing of player and transaction data using industry-standard encryption and cybersecurity protocols.
- Fraud Detection and Prevention: Automated tools and monitoring mechanisms capable of identifying suspicious behaviour, irregular betting patterns, and system manipulation.
- Anti–Money Laundering (AML) Measures: Strong customer verification processes, ongoing transaction monitoring, reporting obligations, and compliance with Kenya’s AML/CFT framework.
- Data Protection Compliance: Alignment with the Kenya Data Protection Act, including lawful processing, informed consent, secure handling of personal data, and respect for data subject rights.
These consumer protection measures reflect the Act’s objective of promoting responsible gaming, preventing harm, and ensuring that gambling remains a fair and safe recreational activity.
- Requirement to Obtain a Telecommunication Licence
The Act now requires applicants, particularly those seeking online or remote gambling licences, to hold a valid telecommunications licence issued by the Communications Authority of Kenya. This requirement ensures that gambling operators use secure, regulated, and technically compliant communication systems that support online betting platforms, safeguard player data, and enable effective regulatory monitoring. It also prevents the use of unregulated telecom infrastructure, thereby strengthening oversight and enhancing the integrity of Kenya’s digital gambling sector.
- Enhanced Fit-and-Proper Requirements
One of the most significant regulatory shifts under the Gambling Control Act, 2025, is the introduction of a far more stringent fit-and-proper test for all gambling operators. Unlike the previous BCLB framework, which focused primarily on the applicant entity, the new regime adopts a holistic, individual-level assessment.
The Act requires that not only the applicant company but also all key persons, including directors, senior managers, significant shareholders, and beneficial owners undergo detailed vetting to determine their suitability to participate in the sector. These assessments examine a wide range of factors, such as:
- Integrity and Criminal History: Verification of any past convictions, regulatory sanctions, or involvement in activities suggesting dishonesty or lack of probity.
- Financial Soundness: Assessment of bankruptcy records, financial stability, and the ability to sustainably operate a gambling business.
- Competence and Experience: Evaluation of the technical skills and professional background necessary to oversee compliant gambling operations.
- Conflict of Interest Risks: Identification of relationships or affiliations that may compromise independent decision-making or regulatory compliance.
By imposing accountability, the Act seeks to ensure that persons exercising control or significant influence over licensed entities meet the highest standards of honesty, professionalism, and financial responsibility. This threshold aligns Kenya’s gambling regulatory framework with international best practices and enhances the sector’s overall integrity.
- Substantial Security Guarantee Requirement
The Gambling Control Act, 2025 introduces a heightened financial safeguard mechanism through mandatory security guarantees, which may take the form of a bond or a bank guarantee. These guarantees are designed to ensure that operators can meet their financial obligations, including payouts to players, compliance penalties, and any liabilities arising from their operations. Notably, the required guarantee amounts are significantly higher than those under the former BCLB regime. With this new requirement, nline and remote gambling operators may now be required to provide security guarantees of up to KSh 100 million, reflecting the higher risk profile and large transaction volumes associated with digital gambling platforms. This substantial threshold underscores the regulator’s intention to strengthen accountability, reduce default risks, and enhance consumer protection in the sector. By imposing this financial buffer, the Act aims to ensure that only well-capitalised, credible, and financially stable entities participate in Kenya’s gambling market, thereby enhancing the sector’s integrity and safeguarding the interest of players and stakeholders.
- Real-Time Monitoring and Control System Requirements
A major technological shift introduced under the Gambling Control Act, 2025 is the requirement for online and remote gambling operators to integrate with the regulator’s real-time control and monitoring system. This system enables the Gambling Regulatory Authority to access live data on wagers, payouts, player activity, financial transactions, and system performance.
Compliance with this requirement means that operators must possess robust technological infrastructure, advanced data management capabilities, and secure integration protocols. Operators will be expected to deploy reliable servers, secure APIs, encrypted communication channels, and stable platforms capable of transmitting accurate, real-time data without interruption. This obligation significantly raises the operational threshold for market entry. It ensures regulatory visibility over gambling activity, enhances consumer protection, improves tax monitoring, and helps detect fraud, money laundering, and irregular betting patterns immediately.
In conclusion, the enactment of the Gambling Control Act, 2025, marks a transformative moment for Kenya’s gambling sector, introducing a modern, comprehensive, and technology-driven regulatory framework. By establishing the Gambling Regulatory Authority, expanding licensing categories, imposing rigorous fit-and-proper standards, and mandating robust consumer protection and real-time monitoring systems, the Act aims to enhance transparency, accountability, and player safety.
For operators, compliance under the new regime is no longer optional but requires careful planning, adequate capital, secure infrastructure, and adherence to strict governance and reporting obligations. For consumers, the Act provides stronger protections against evasion of personal data, fraud, underage gambling, and social harm, while promoting responsible and fair gaming practices.
Overall, the Act positions Kenya as a forward-looking jurisdiction in the gambling sector, balancing economic opportunity with social responsibility, and aligning domestic regulations with international best practices. Operators, investors, and stakeholders must now proactively align their businesses to meet these enhanced regulatory standards or risk penalties, licence revocation, and reputational harm.
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We are a commercial law firm in Nigeria with network of lawyers and consultants in Ghana, Kenya and Rwanda. The above article is not legal advice and does not automatically make our readers our clients unless they specifically instruct us to act or represent them in any way.
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