New entrants aiming to establish themselves in the online betting and gambling industry will be required to fork out approximately Ksh. 500 million to receive approval to operate if a proposed bill is enacted by parliament.
The Gaming Bill 2019, which has already been tabled before parliament, seeks to abolish the current gaming law in a bid to control gambling and the mushrooming of online gambling platforms in the country.
According to a news report by the Business Daily, should the bill be passed by the National Assembly, online betting firms will first have to pay Ksh. 100 million to get operating licenses. The firms will similarly have to deposit Ksh. 200 million refundable cash to the Betting Control and Licensing Board which will act as security. Consequently, they will have to prove to the regulator that they can sustain the gambling operations by pledging at least Ksh. 200 million into the business.
The Business Daily correspondingly reports that the new law also proposes that investors of non-online gaming businesses pay Ksh. 30 million each for license and security while those opening casinos will be obligated to pay Ksh. 50 million each in permit fees and security as well as showing proof of Ksh. 100 million to sustain the businesses.
“Each licensee shall provide proof of adequate gaming capital to set up the operation for which a licence has been applied. Security deposited may be used by the board to defray a licensee’s liability which may arise from the licensed activity,” the proposed law says according to the Business Daily.
The Gaming Bill 2019 also seeks to place stringent laws to control online betting sites that have become popular in the country over the last five years, more so with the youth who fancy the convenience of placing bids online.
The development comes just days after the Betting Control and Licensing Board denied nineteen gambling and betting firms new operating licenses.