The National Lottery Bill, 2023 (1)

THENATIONALLOTTERYBILL,2023 ARRANGEMENTOF CLAUSES

Clause

PARTI-PRELIMINARY

1-Short title.

2-Interpretation.

3-Objects andpurpose of the Act.

PARTII-THENATIONALLOTTERYBOARD

4-Establishment of the Board.

5-Composition of the Board.

6-Functions ofthe Board.

7\_Powers ofthe Board.

• 8-Conduct ofbusiness and affairs of theBoard

9-CommitteesoftheBoard.

• 10-Remuneration of the members of theBoard

11-ChiefExecutive Officer.

12-Corporation Secretary of the Board.

13-Staff of theBoard.

14-Delegation of powers of the Board.

15-Sealof theBoard.

16-Fundsof theBoard.

17-Financial year.

18-Annual estimates.

19-Booksofaccounts.

20-Reports of the Board.

PARTHI-THENATIONALLOTTERY

• 21-Establishment of theNational Lolttery

22-Exemption.

• 23-Procurementofanoperator,

• 24-Licensing theNational Lottery
• 25-Duration of licence.
• 26-Obligationsoftheoperator.
• 27-Overridingresponsibilities.
• 28-Variation of conditions of theNational Lottcry
• licence.
• 29-Enforcement of conditions of aNational Lottery licence.
• 30-Revocation of a National Lotteryliccnce
• 31-Notice ofrevocation ofaNalional Lolttery licence
• 32-Suspension of a National Lollery licence.

PARTIV-CONDUCTOFANATIONALLOTTERY

• 33-National Lottcry games
• 34-Disclosure ofodds.
• 35-Persons prohibited from participating in the
• National Lottery.
• 36-OffenccsrelatingtoNational Lottery tickets.
• 37-Disclosure by agent.
• 38-Draws.
• 39-Payment of prize.
• 40-Prizes and tickets.
• 41-Audit of theNational Lottery.
• 42-Apportionment of the proceedsof theNational
• lottery.

PARTV-THENATIONALLOTTERYFUND

• 43-Establishment of theNational LotteryFund.
• 44-Functions of the Board.
• 45-Annualprogrammes andprojects
• 46-Administrator of the Fund.
• 47-Beneficiariesof the Fund.
• 48-Financial yearof the Fund.

THENATIONALLOTTERYBILL.2023

ABill for

AN ACT ofParliament to provide forthe establishment oftheNational Lottery,the National Lottery Board and the National Lottery Fund,and for connected purposes

ENACTED by theParliament ofKenya,as follows-

• 1.This Act may be cited as the National Lottery Act, 2023.
• 2.In this Act,unless the contcxt otherwise requires-

"Board"mcans the National Lottery Board constituted inaccordance with section4:

"Cabinet Secrctary"means the Cabinet Secretary for the time being responsible for matters relating to the National Lottery:

"child"means an individual who has not attained the

age of cighteen years;

"Fundmeans the National Lottery Fund established by section 43:

"good causes"means charitable causes or events for

charity set out in section 2l(3):

"National Lollery" means the National Lottery

established by section 21:

"operator"means the entity procured by the Board to

run the National Lottery in accordance with section 23of the Act;

"prizemeans the prize awarded to a winner ofa

lottery or a prize promotion;

"regulatory authority"means the government agency established by the law to regulate the gambling sector,

"ticker"in relation to any lottery or game of chance, includesany written or clectronic doeument evidencing thc claim of a person to participate in a chanceof a lottery or a game of.chance:and

"winning"includes a prize of any kind.

Short lile.

Tnterpretation:

• 3.The objects and purpose of this Act is to-
• (a)establish a National Lottery for the pooling of additional resources to be directed to good causes;
• and
• (b)direct adequate funding to critical areas key to ensuringa socially responsible National Lottery.

PARTIITHENATIONALLOTTERYBOARD

• 4.(1) There is established a Board to beknown as the
• National Lottery Board.
• (2)The Board shall be a body corporate with
• perpctual succession and a common seal and shall,in its corporate name be capable of-
• (a)taking,purchasing or otherwise acquiring,holding. charging and disposingofmovable andimmovable property:
• (b)borrowingmoney:
• (c)cntering into contracts,
• (d) suing and being sued;and
• (c)doing or performing all such other acts necessary
• for the performance of its functions under this Act which may be lawfully done or performed bya body corporate.
• (3)The headquarters of the Board shall be in Nairobi but theBoard may establish offices at such other places as
• may be necessary for the execution of its mandate.
• 5.(1) The Board shall consist of-
• (a)a Chairperson appointed by the President;
• (b)the Principal Secretary National Treasury or his or
• her representative,appointed in writing;
• (c)the Principal Secretary in the State Department for the time beingresponsible for theNational Lottery
• or his or her representative,appointed in writing:
• (d)theAttorney-Generalorhisrepresentative, appointed in writing:

Objects and puposeofthe Act.

Estnblishment of Ihe National Lotery Board.

Compositionof the Bonrd.

• (e)four other members who.have proven business acumen or applicable knowledge or experience with rcgard to matters connected to the functions ofthe Board and ofwhom at least one shall be an Advocate of the High Court ofKcnya,and at least onepracticing CertifiedPublicAccountant, appointed by the Cabinet Secretary:and
• ()the Chief Executive Officer of the Board.
• (2)Aperson shall be qualified for appointment as the Chairperson or a member of the Board,if the person-
• (a) is a Kenyan citizen;
• (b)holdsauniversity degreefrom auniversity
• recognized in Kenya:
• (c)has a minimum of ten years'working experience
• in a relevant field:
• (d)hasnot served in the same entity as an employee in the preceding fiveyears;
• (e)meets the requirements.of Chapter Six ofthe Constitution;and
• ()has submitted to the Cabinet Secretary a written declaration stating that the person does not have any interests in the gambling scctor or an interest in a business or enterprise that may conflict or interfere with the properperformance of the duties ofa member of the Board.
• (3)A person shall not be appointed asa Chairperson
• ormember of theBoard if theperson-
• (a) is an undischarged bankrupt;
• (b)has been convicted ofa criminal offence and sentenced to imprisonment for a term exceeding
• sixmonths:
• (c)at the time of appointment holds a political office;
• (d)haspreviously been removed from a public office
• reasons,or
• (e)in the last twelve months immediately preceding the appointment,had personal direct or indirect commercial interest in the gambling sector.

• (4)A member of the Board shall hold officefor a term ofthree years and shall be eligible for reappointment for one further term of three years.
• 6.(1)The Board shall-
• (a)supervise,control and monitor the operations of
• National Lottery orNational Lottery operator;
• (b)put in place measures to prevent fraud in the conduct of the National Lottery:
• (c)make recommendations to the Cabinet Secretary
• for the formulation ofpolicies for the conduct of National Lottery:
• (d)advise the Cabinet Secrelary on Regulations which wonld berequired for the effective operation of the National Lottery;
• (e)advice the National Governmcnton the National
• Lottery:and
• (Dperform such other funetions as the Cabinet Secretary may assign to theBoard.
• (2)TheBoard may on its own or through legal agents or in collaboration.partnership or joint venture with any person,society,association or corporate entity or through Lotlery in accordance with this Act.
• (3)Subject to subscction (2),losses that may arise from the runningof anationallottery during such collaboration,partnership or joint venture shall not be compensated for by the State or from the National Loftery
• Fund.
• 7.(1) The Board shall have the powers necessary for
• the performance ofits functions under this Act.
• (2)Despite the generality of subsection (1),the Board shall havepower to-
• (a)manage.control and administer the assets of thc bestpromotes thepurpose for which theBoard is cstablished;

Functionsatihe Baard

Pover ofthe

Bond

• (b)receive any gifis,grants,donations or endowments made to the Board or any othermoneys in respect of theBoard and make disburscmentstherefrom in accordance with the provisions of this Act;
• (c)open and operate a bank account with the approval
• of the National Treasury:
• (d)conduct such investigations as may be necessary forthe cnforcement of this Act:
• ()offer services to any person upon such terms as the
• Board may determine from time to time.
• (3)The Board shall approve the opening.operating and closing of the bank accounts for the Board and its agents,and seek approval of the National Treasury.
• 8.(l) The procedure for the conduct of the business andaffairs of the Board shall be as provided in the
• Schedule.
• (2)Subjcct to the Schedule,the Board shall regulate its ownprocedure.
• 9.The Board may cstablish such committees as it may consider necessary to assist it in the performance of its functions and the exercise of any-of itspowers.
• 10.The members.of theBoard shall be paid such allowancesand disbursements for such expensesasmay be approved by the Cabinet Sccrctary.in consultation with the relevant Govemment Agenciesand on the advice ofthe Salaries and Remuneration Commission.
• H1.(l) There shall bea Chief Executive Officer of the Board who shall be appointed by the Board through an open,transparent and competitive proccss.on-such terms and conditions of service as the Board may determine.
• (2)A pcrson shall be qualified for appointment as the Chief Executive Officer if theperson
• (a)is a citizen of Kenya;
• (b)holdsa degree from auaiversityrecognizcd in Kenya:

Condactof bsipess snd uianofthe Board

Commitresofihe Boarl

Renuneration of Fhir Bd

Chier Enccutive

CHficeT.

• management in a public or a privatc institution:
• and
• (d) satisfies the requirements of Chapter Six of the Constitution.
• (3)The Chief Executive Officer shall be-
• (a)the custodian of all the records of the Board;
• (b)responsible for the day-to-day management of the
• affairsand staff of theBoard;
• (c)responsible for the management and maintenance ofefficiency ofthe staffoftheBoard:and
• (d)responsible for-
• (i)executing decisions of the Board:
• (i)facilitating.coordinating and ensuring execution of the mandate of theBoard:
• (ii)preparing and submitting for approval,by the Board,programmesofworkforthe achievement ofthe mandate of the Board:and
• (iv)the performance of such other duties as may
• be assigned by the Board or any wrilten law.
• (4)The Chief Executive Officer shall be appointed for a term ofthree years and shallbe cligible forre-
• appointment for one further term of threeyears.
• 12.(l) ThcBoard shall competitively recruit a person qualified to serve astheSecretary to theBoard.
• (2)The Secretary to the Board shall
• (a)provide guidance to the Board on the duties.
• responsibilities and powers of the Board:
• (b)ensure that the Board follows its procedures and complieswithherespectivelawsand
• regulations;
• C prepare the Board's work plans and assist the Chairperson to organise the Board's activities including meetings,agcndas of meetings.issuing notices to other members of the Board.circulating Board papers before mcetings,keeping a record ofattendance-at mcelings;

aonedo Seoretary.

• (d)take and kecp theminutes of the meetings of the Board,andcirculatingthe minutestothe
• membersof the Board;
• (e) keep a rccord of the usage orthe seal of the Board, and prepare the annual mectings of the Board:
• keep a record of the appointment letters.notices ofappointment and the written acceptanceof appointment by mcmbers ofthe Board:
• (g)keep a record of conflicts of interest declared by
• cach member of theBoard;and
• (h)perform such other duties as the Board may
• direct.
• 13.The Board may appoint such number of
• professional,lechnical and administrative staff as it may consider necessary for the dischargeof thc functionsof the Board,on such terms and conditions asthc Board may determine,in consultation with the relevant Govermment agencies.
• 14.TheBoard may byresolution cithcr generally or in any particular case delegate to any committee of the Board or to any member,officer,employee oragent of the Board the exercise ofany of thepowers or the performance of any ofthe functions ordutiesof the Board under this Act or under any other written law.
• 15.(l) The common seal of theBoard shall bekept in thc custody of the Chief Executive Officcr or such other person as the Board,may direct and shall not be used cxceptupon theorder of theBoard.
• (2)Thecommon-sealof the Boardshall be authenticatcd by the signature of the Chairperson of the Boardorthe ChiefExecutive-Ofliccr.

Provided that the Board shall,in absence ofeither the Chairperson or the Chief Executive Officer,in any particular matter nominate one member of the Board to authenticate the seal ofthe Board on bchalf ofcither thc Chairpersonor the Chief Executive-Officer.

• (3)The common seal of the Board shall,when affixcd toa document and duly authenticated,be judicially and officially noticed and unless the contrary is proven,any

Staff of the Board

Delegationof powersof.the Basnd.

Seadof the Board order or authorization by the Board under this section shall bepresumed to have been duly given.

• 16.(1)The fundsoftheBoard shall comprise of
• (a)such monies as may be appropriated by Parliament forpurposes of the Board:
• (b) such monies as may be payable by an operator of the National Lottery under section 42(1)(d):
• (c)such monies as may accrue to or vest in the Board in thecourse of theexercise of itspowcrs or the performance of itsfunctions under this Act;
• (d)interest from the investment ofmoney standinglo
• the credit of the Board:and
• (e)all monies from any other source provided for, donatcdor lend to.the Board.
• 17.The financial year of the Board shall be the period of twelve months.ending on the thirtieth June in every year.
• 18.The annual estimates of the Board shall be
• prepared and approved in accordance with the Public Finance Management Act,2012.
• 19.(l) The Board shall cause to be kept all proper
• books and records of accounis relating to the income, expenditure,assets and liabilities of the Board.
• (2)The accounts of the Board shall be prepared and audited in accordance with thePublicFinance Management
• Act,2012and Public.Audit Act,2015.
• 20.(1) The Board shall prepare quarterly and annual financial and non-financial reports in a format prescribed by the Public Sector Accounting Standards Board and submit the same to the National Treasury with copies to the Controller of Budgel and the Commission on Revenue Allocation.
• (2)The Board shall continuously and on a regular basis monitor and report on its performance and on the performance of the operator on a quarterly basis,with a summary ofperformancereported through Board's annual report on the basis of a clear outcome-based performance frameworkbasedondevelopedby theNalional Government.

Fundsof the Board.

Finincial year.

Anmualeslinates No.18of2012.

Booksof

No.182012. SHCPON

Repors af the peog

PARTIII-THENATIONALLOTTERY

• 21.(1)There isestablishcd a National Lottery to be operated within the Republic ofKenya.
• (2)The National Lottery shall be conducted for the purpose ofraising resources for the nation towards good causes in Kenya and for any other purposes provided in this
• Act,
• (3)The good causes that shall be facilitated by the
• National Lottery under subsection (2)shall include-
• (a) charitable causes including-
• (i)providing care andprotection for the physically or mentally afflicted,the aged, orphans and vulnerable children:
• (i)promotesocialdevelopment ineluding universal health care;
• (ii) facilitate the protection and rehabilitation of
• vulnerable orproblem gamblers;
• (iv)\_promote the protection and conservation of developmentor supportanimalwelfare
• the environment,efforts towards sustainable initiatives:
• (v)aid to the needy.such as through the provision of food,shelter,or healthcare services,and
• through thepromotion ofinterfaith dialogue:
• (b)economic empowermentincluding
• support for thedevelopment ofsmall businesses or other economic development initiatives:
• support cducation,including.among others, throughthe provision of scholarships\_or educational resources,including libraries,
• laboratories:
• (ii)promotion of scientific research,innovation, and technological development:and

Essablishmentaf theNaional Lollery-

• (iv) support forhealth and medical research,
• including through the funding of clinics or medical facilities;
• (c)sports,rereation,arts,culture and national hritage including-
• support for national teams lo participate in
• (i) regional and international events;
• (ii) financing the development of sports and recreation facilities including stadia, gymnasia,buildings,tracks:
• ( enhancing support and access to funding for sportspersons and sports organizations to enable their participation in sporting events and competitions;
• (iv)
• facilitation for the acquisition and provision ofcquipment tosports and recreation facilities;
• (v)
• support for the identification,nurturing and developmcnt of talent in sports and arts;
• (vi) facilitating training and capacity building programmes for persons involved in sports andrecreation,creative arts,artistic production,contemporary andcultural practitioners:
• (vii) facilitating the identification,development and capacity building of technical personnel
• and sports support personnel involved in sportsand recreation:
• (vi) suppor for the development,marketing.and promotionofartisticproductionof contemporaryor:cultural goodsand services;
• (ix) support forlinkages with domestic,regional, and international markets for sports,artistic productions and contemporary or cultural
• goods and services;
• (x) facilitating the exhibition and promotion of contemporary or cultural artistic production

• ofgoods and services for nalional identity and pride:
• (xi) financing the acquisition,development,and preservation of,among others,heritage sites, cultural centres, national monumcnts, tangible and intangible heritage and culture and heritage equipment and tools;
• (xii)facilitate innovation, research and documentation in arts,culture and the creative industry, sports,and social development;and
• (xii) promotion of culture,arts,and heritage,such
• asthrough the support of museumsor culuralevents.
• (d)signature transformation projectsincluding-
• strateicinitiatives,projects,or programs developed by the National Government county govemments. non-governmental organisations, thatare uniqueand distinctive.with high and visible impacts, includingbeingkey to positioning the country regionally orinternationally economically,socially,orotherwise:
• (ii)
• affordable housing:
• (i) community centres for youth programs or underprivileged communities:
• (iv)
• sustainable agriculture or energy initiatives,
• (v) healthcare programs;and
• (vi) scientific research or innovations addressing challenges including climatechange, infectious diseases, cybersecurity.or Infrastructure projccis improving access to water, sanitation,clean energy in remote of underdeveloped areas.
• (e)cmergencies including-
• (i)response to emergencies or crises affecting communities orpopulations includingnatural disasters,conflicts.publie health crises,or

• other unforeseen eventsthat require urgent intervention,and
• (i)response as well as disaster risk reduction initiatives that help communities prepare for andrespond to emcrgencies and disasters.
• (4)The Board may,in consultation with thc Cabinet Secretary.operate any other game of chance or cnter into collaboration,partnership or joint venture with any person, society.associationorcorporate entity.lo-operate a game ofchance in accordance with existing laws,but losses from the game of chance,the collaboration,partnership or joint venture shall not be compensated for by the State or from
• the National Lottcry Fund.
• (5)Any proceeds from any other game of chance operated by the Board under subsection (4) shall be paid into the Fund.
• 22.Despite any other provision of this Act,the provisions of any written law relating to the regulation of public lottericsfor charitable purposes,lotteriesfor charitable,sporting and other purposes and loltteries incidental to entertainment shall not apply to the National Lottery.
• 23.(1) Subject to section 6(2).the Board may procure
• an operator lo run the National Lottery on its bchalf in accordance with Article 227of the Constitution and the Public Procurement and Asset Disposal Act,2015,and the Board may require payment for any document that may be rcquired for the procurement process.
• (2)A person shall be eligible to be the National
• Lottery operator if that person-
• (a)-hasappropriateknowledgeor experienceto conduct a national lottery in accordance with this
• Act and any condition imposed on the licence;
• (b)has the necessary financial and other resources to
• conduct the lottery;
• (c)isnot a state or public officer.or the holder ofa political office;and
• (d)is a fit and proper person to conduct thelottery.

Exempion

Procuerent of an operator,

No.33af2015

• (3)Without prejudice to the generality of-subsection (1) the Board may,in considering whether a person is fi and proper person to ruin the National Lottery
• (a)take into account whether the person-
• (i) has contravened the provisions of any law,in Kenyaorclsewhere,designedforthe protection of members of the public against financial loss due' 1o dishonesty. incompetence.ormaipracticebypcrsons cngaged in gambling:
• (i)was a director of a licensed person who has
• beenliquidated or isunder liquidation or statutory management;
• (il)has taken part in any business practice which, in the opinion of the Board,was fraudulent prejudicial to the gambling market or public interest,or was otherwise improper,which wouldotherwisediscredittheperson's methods of conducting business:
• (iv)has taken part or has been associated with any business practice which casts doubt on the competence or soundness of judgment of that person:or
• (v)has acted in a manner that casts doubt on the person's competenccandsoundness of
• judgment;
• (b)take into account any information inthe
• possession of the Board,whether provided by the applicant or not,relating to-
• (i)anyperson who is to be employed by. associated with,or who shall be acting for or on behalf of,the applicant for the purposes ofa gambling aclivity.including an agent;
• or
• (ii)where the applicant is a company in a group of companies
• (c)take into account whether.the applicant has established effective internal controlproceduresand

• risk management systems to cnsure its compliance with all applicable regulatory requirements;and
• (d)have regard tothe state of affairs of any other business which the person carries on or purporis to carry on.
• (4) The Board shall satisfy itself that the applicant has sufficient appropriateknowledgeorexperiencethe operation ofa national lottery and will beable lo conduct the National Lottery strictly in accordance with this Acl the licence and any agrcement with the Board.
• (S)The process of procurement of a new opcrator shall commence two years before the expiration of the current licence.
• (6)Subject to subsection-(5),an operator who would like to seek for an cxtension of the duration for running the
• National Lottery.shall commence the process at least two years before the expiration of the subsisting agrecment with the Board.
• (7)In case of procuring a new operator,it shall be the responsibility of the Board to commence the process two years before the expiration of the current licence.
• 24.(1)Theregulatoryauthorityshall.upon application in the prescribed form and payment ofthe prescribed fee,issue one licence authorizing the Board or thc person procured under section 23 to operate a National Loltery subject to such conditions as it may deem fit to impose.
• (2)The regulatory authority shall,before granting a licence,satisfy itself that-
• (a)the applieant has theability lo commence operations not more than six months from the date
• of issuance of a licence;
• (b)theapplicanthasappropriateknowledgeor accordancewith this Act and any condition imposed on the licenee:
• (c)the applicant has thc necessary financial and other resources to conduct the lotlery:

Licening he Natiomal Loery.

• (d)no direct or indirect financial interest exists on any applicant by a person who is the holder ofa politicaloffice:and
• (e)the applieant,its directors and shareholders are fit and proper persons to conduct the lottery.
• (3)Aperson issued with a licence under subsection
• (1.shall
• (a)conduct the National Loltery subject tothe standards,norms and requirements set by the regulatory authority,all other applicable laws and the conditions attached to the licence:and
• (b)ensure that the interests of every participant in the national lottery are adcquately protected
• (4)The provisions of any written law relating to the requiremenis,standards.norms and conditions rclating to licensing of gambling activity shall apply to National
• Loltery-
• 25.(1)A licence for a National LoHery operator shall be valid fora period of seven years:

Providedthal-

• (a) the regulatory authority may,in a case where thc licence has been granted for seven years,andat least two years before-the expiry of that licence. extendthat licenceforfurther periodnot cxccedingthree years which together with the initial period for which thai licence was granted, shall not excced ten years:and
• (b)the operator shall have no rights or legitimate expectations in rcspeclofan extension of the period of validity ofthe licence other than the rights afforded by this section.
• (2)The reguiatory authority shall before granting an and reasonable cause warranling such an exiension
• extension ofa licencebe satisfied that there exists a just including-
• (a)inability of the Board to get a suitable operator during the period of thecxtension:

Duration or

licenee

• (b)demonstration by the existing operator of its failure to fully recoup the investment in the lottery;or
• (c)the need to recover any period of suspension of a conducted under this Act in instances where the outcome of the proceedings was in favour of the operator.

26.The operator shall-

• (a)ensure that such requirements as the regulatory
• authority may from time to time,determine or impose are complied with:
• (b)provide such information regarding the conduct of a national lottery as the Regulatory authority may
• require from time to time;
• (c)make such arrangements for the paymcnt of such
• sums out of thegrossrevenue of thelottery asmay be specified by the Board;
• (d)do such thingswithin the terms ofaliccnce including the transfer of property or any rights, other than intellectual property rights as the Board or regulatory authority may require,upon the expiration ofa licence;
• (e)obtain the approval of the regulatory authority for any lottery and the rules thereof before a loltery is conducted;
• (allowthe regulatory authority or any person designaled by the regulatory authority and the Board or any person designated by the Board to enter any premises or facility belonging to or under thecontrol ofthe operator ora member of the management of the operator,or,premises to which the operator has a right of access,at any reasonable time,if such entry is necessary for the protection of the integrity of the lottery.to-
• examine or inspect any machine,document or data in a licensed premise or facility and
• make copics orextractsfrom it:
• seize,for the purpose of examinationof information any machine,document or data,
• on the conduct of anational lottery:

Oblgalions ofihe

operane.

• (ii) secureavalidandenforceablewritten undertaking from a person controlling the operator in any way not to changc,transfer. cede the control ofa licence or in any way encumber the licence lo another person withoutthe consentoftheregulatory authority:and
• (iv)take such steps as may be reasonably of theNational Loltcry:
• 27.(1)The Cabinet Secretary.the regulatory authority and the Board shall exercise their respective mandates under this Act in the manner that is most likely to-
• (a)ensure that the National Lottery is run,and cvery lottery that forms part of it is promoted,with all
• due propriety and in accordance with the relevant law:and
• (b)ensure that the intcrests of every participant in a lottery that forms part ofthe National Lottery are
• protected.
• (2) Subject to subsection (l),the Cabinet Secretary,
• the regulatory authority and the Board shall in cxercising their respective mandates under this Act-
• (a)ensurethat the netproceedsof the National Lottery are maximised;and
• (b)adopt strategic and inclusive frameworks for
• responsible gambling.
• 28.(l)The regulatory authoritymay varyany condition ofa licence issuedunder section 24
• (a)with the consent of the operator,or
• (b)without the consent of the operator,where
• (i)a variation is provided for in this Act or to the extent provided for in thelicence:and
• (ii)the operator has been given a reasonable opportunitytomakerepresentation lothe regulatory authority in respect of the intended variation and the representation is considered by the regulatory authority as insufficient.

Overiding

nesponsbilities.

Variation of conditions of the Natiomal Lotiery Bicence.

• (2)The regulatory authority may,in varying the conditions of a licenceimpose new conditions or reduce the
• conditions to the licence.
• (3)Where the regulatory authority intends to revoke a licenceundersubsection(28)(1(b).thercgulatory authority shall serve the operator with the notice of the intended variation specifying the grounds for such variation and require the operator to,within fourteen days of service of the notice,give reasons why the licence should not be
• varied.
• (4)Anotice under subscction (3)shall be served not less than twenty-one days before the date of the intended variation and shall spccify the grounds for such variation.
• (5)Where the operator fails to give reasons within the period stated,the licence shall cease to be valid.
• (6)Ifreasons are furnishedbythe operator.the regulatoryauthority.as the case may be,shall after considering such reasons-
• (a)decide whether or not to vary the licence,or
• (b)call upon the operator to appear before it on a specified datelo make oralrepresentations in regulatory authority,as the case may be,regarding writtenrepresentations,thereafterthe regulatory authority shall detcrminewhether or not
• support of any wrilten representationsmade by the such to vary the licence.
• (7)The variation of a licence shall not prejudice any liability or obligation incurred under or in relation to the licence prior to itsvariation.
• 29.(1)Where the regulatory authority has reason to believe that-
• (a)a person has contravened any condition ofa National Lottery licence which cannotbe
• remedied;or
• (b)thereisareasonablelikelihoodthatthe nature,

Enforcememtof

conditionsof Natioal Louery lioenen.

the regulatory authority may apply to the High Court for an order prohibiting the contravention,or,requiring the operator or any other pcrson to take such steps as the Court may direct.

• (2)The liability of the operator to pay any money
• under this Act shall not be affected by a licence ceasing to be valid for any reason,
• 30.The regulatory authority may revoke a National Lottery licence where-
• (a)inits opinion,theoperatororhisorher representative has grossly violated the provisions ofthisAct:
• (b)a person licensed is no longer a fit and proper
• person to conduct the National Lottery:
• (c)any condition of thelicence has been breached;
• (d)any information given lo the regulatory authority controls the operator or any agent orrepresentative of the operator ismaterially false in--
• connection with the application for the
• (ii)
• licence;
• accordance with a condition of the licence;or
• (ii)with respect to the financial matters regarding the National Lottery or in respect of any aspect of the managemenl of the National Lottery:
• (e)any person who is managinga business orany part ofabusiness ofthe operator orwho isa supplier ofgoods or services to the opcrator-and connected loalotteryoperation is in the opinion of the regulatory authority nol a fit and proper person to do so due to insolvency.liquidation,imprisonment or forany other sufficient reason:
• (f)the operator has failed to take adequate steps to prevent a commission of fraud by his or her cmployees,agents,representatives,suppliers orby
• participants in a lottery;

Revocation of NalionalLottery lieence.

• (g)the operator or any of his or her cmployees agents,representativcs or suppliers has prevcnted by the regulatory authority in carrying out their duties as contemplated under the Act;or
• (h)a person who in any way controls the operator is declared insolvent or isliquidated.
• 31.(1) Where the regulatory authority is satisfied that National Lottery licence,the regulatory authority shall
• there are grounds for the suspension or revocation of the notify the Board and the operator,in writing of the existence of such grounds and shall require the operator to furnish reasons.within fourteen daysof service of the noticc why the licence should not be revoked
• (2)Where the operator fails to give reasons within the
• period stated,the licence shall cease to be valid.
• (3)If reasons are furnished by theoperator,the regulatoryauthority.as the case may be, shall after considering such reasons-
• (a)decide whether or not to revoke the licence;or
• (b)call upon the operator to appear before il on a specified date lomake oral representations in support of any writlen representations made by the regulatory authority,as the case may be,regarding suchwrittenrepresentations,thereafier the regulatory authority shall dctermine whether or not torevoke the licence.
• (4)Wherea licence for the National Loltery ceasesto be valid under this section,the regulatory authority shall forthwith inform the operator and the Board,in writing.of the dafe upon which the licence shall cease to be valid.
• (5)Therevocation of a licence shall not prcjudice any liability or obligation incurred under or in relation to the licence prior to its revocation.
• (6)Where the regulatory authority revokes a licence. itshall forthwith inform the public through a notice in the Gazeite and two newspapers ofnational circulation or other medium of information.with national coverage.

Noteeof rerocason ofs Natonal Lotiery lieenee,

• 32.(l)The regulatory authority may order the

Suspensinn ofa licence.

• suspension ofa National Loftery licenceupon givingnotice andgiving the opcrator an opportunity to be heard.
• (2)The procedureunder section 3l shall apply mutaris mutandis when the regulatory authority is considering the suspension ofa licence.
• (3)Where the reguiatory authority suspends a licence under subsection (I),it shall forthwith inform the public through a notice in the Gazette,and two newspapers of nationwide circulation or any media of national coverage.
• (4)Where a licence for the National Lottery ccasesto
• bevalid under subsection (1),the regulatory authority shall inform the operator and the Board in writing the date upon which the licence wassuspcnded
• (5)The suspcnsion of a licence shall not prejudice any liability or obligation incurred under or in relation to the
• liccnce prior to its suspension.

PARTIV-CONDUCT OFANATIONAELOTTERY

• 33.(1) The operator may with the approval of the
• may consider appropriate for purposcs ofthe National Lottery.
• (2)The regulatory authority in consultation with the Board shall prescribe guidelines.policies and proccdures
• for the conduct ofgames comprising theNational Lottery.
• (3)Guidelines issuedunder subsection(2)shall includeguidelinesrelating lo-
• (a)the type and number of games to be conducted by the operator,
• (b)the method and location of setting up or validating
• winningtiekets:
• (c)the manner of payment of prizes to holders of
• winningtickets;
• (d)thefrequency games and draws or determination ofwinning tiekets:
• ()the method to be used in selling tickets,which may include-the usc ofelectronicormechanical
• devices:

NtomlLotery

gumea

• ()the conduct of draws and determination of winners of cach game;
• (g)requirementsgovcrming lottery tickets:and
• (h)anyotherguidelinenecessarytocnsurcthe efficient and effective operation ofnational lottery games,
• 34.(1) The operalor shall print all lottery tickets bearingits approved imprint and logo.
• (2)Each ticket shall have-
• (a)a serial number;
• (b)a draw number;
• (c)a drawdate:and
• (d)a designated space for the signature
• (3)The regulatory authority shall issue guidelines with respect to the purchase of tickets.
• (4)The sale ofa national lottery ticket shall be the responsibility of the operator and it may after consultation with the regulatory authority,authorize such suitably qualifiedpersons as it may determine to actasits agents for the sale of the-National Lottery tickets.
• (5)The operator shall authorizeagents subjecl to such termsand conditions asmay be determined by the operator with the approvalof theregulatory authority.
• (6)The Operator shall in consultation with the Board determine the form and prizeofa lottery ticket sold under
• this Act.
• (7)A person,other than theoperator who sellsoffcrs orexposes for sale or invites an offer to buy orpossess for sale a national Jotlery ticket commits an offence and shall be liable upon conviction to a fine not exceeding five hundred thousand shillingsor to imprisonment fora term not exceeding one year orboth.
• 35.(1) A ticket purchased for value or awarded as aPee prhad prize in a lotlery is prohibited for sale to-
• (a) children;

tpo panicipating in Natinnal Lottery

Disclosueof

odds,

• (b)a director,agent or employee of the operator;
• (c)amembcror employeeof the Boardor the regulatory authority;
• (d)a pcrson who prints national lottery tickcts or an employee of such a person,or a director of such
• company:
• (e)aperson whosuppliescomputers.orother clectronic devices of any kind or parts for the same,orequipmentorprogramming or instructions foruse,or who operates,maintains or
• repairs any such devices used by the operator:
• (fan illegal immigrant;or
• (g)any other person prohibited under any other law
• (2)Despite subsection (1).pcrsons whoarenot citizensor residents of Kenya shall only participate in games.which have instant draws.
• (3)The prohibition under subsection (l) shall cease to apply toa person specificd in paragraphs (b).(c).(d) and (e)after the expiry oftwo ycars from the period their directorship.agency or cmployment with the operator,the
• Board or the regulatory authority
• (4)For the purposes of ensuring that children do not and verify information establishing the identity and age of
• participate in the National Lottery,the operator shall obtain the customerbefore thepurchase ofa lottery tickel
• 36.(l)Any person who allows a person prohibited to
• participate in unauthorized lottery commits anoffence and shall be liable upon conviction to a finenot exceeding five million shillings or imprisonment for a term not exceeding five years or toboth.
• (2)Inadditiontothepenaltyimposedunder
• subsection (l),ina case where anational lottery ticket is held in contravention of the provisions of section 35
• (a)a ticket in respect of which the offence is committed
• shall not be cntered in the lottery draw,and if it is so cntered and is drawn as the winning tickct,the prize in respect of the ticket;and

Oifences rebiing

to National Louery tickes.

• (b)where a prizeis awarded in Lhe lotlery to the owner ofsuch a ticket,the prize shall be returned to the operator within one month after receipt.
• (3)Where a prize to which subsection(2))(b)applies is not returned as required,such a prize or an amount of money cqual to its value may berecovered by the operator through a civil suit.
• 37.(1) An agent in any bid or proposal for a contract to supply lottery equipment,tickets or any material or service to the operator for use in thc opcration ofthe National Lottery shall furmish the operator with the namcs and addresscsof the followingwith respect tothe principal-
• (a)if a partnership,all the general and limited partners;
• (b)if a trust,the trustees and all persons entitled to receive income or benefit from the trust;
• (c)if an association,the members.officers and directors:or
• (d)if a corporation,the officers,directors and eache) cquity,security or other evidence ofownership of
• owneror holder.directly or indirectly of any any interest in the corporation:

Provided that in the caseofowners or holders of publiclyheldequitysecuritiesofapubliclytraded corporation,only the names and addresses of those owning orholding ten per cent or more of such securities shall be disclosed.

Draws

• 38.(1) All draws.and prize draws shall be open-to members of the public.
• (2)Draws for all games comprising ofa lottery shall be conducted at such times and at such places as may be delermined by the operator with thcapproval of the
• regulatory authotiry.
• (3)The number or alphabet letter and permutation of numbers or alphabet letters drawn that constitute winnings ofNational Lottery shall be determined by theregulatory authority and published in the Gazelte,a newspaper or other medium of information of national coverage.

Diselosure by tgehts.

• (4)An officer of the regulatoryauthority shall
• supervise the selection ofwinning entries in all draws.
• (5)Any equipment used ina public draw to select a winningnumber,alphabet letter or cntry for a prize shall be examined and tested by the regulatory authority togcther with an intermal auditor of the operator or a designated
• representative prior to and after each public draw.
• (6)The operator shalladoptrules,policiesand establish a system for verifyingvalidity of ticketspresented
• procedures to conduct fair andequitabledraws and for theawarding ofprizes.
• 39.(l)A prize shall not be awarded upon a ticket
• purchased or sold in violation of this Act.
• (2)The operator shall standdischarged from all liability to winners upon payment ofprizes in accordance
• with the terms and conditions of anational lottery.
• (3)The operator may provide for payment of prizes by
• specify whether or not the agents sold the winning tickets.
• 40.(l) The winners of National Lottery shall be paid prize monies-
• (a) determined by the Board,and
• (b)published in the Gazelte,a newspaper or other medium of information with national coverage.
• (2)The operator shall pay the winners of the National Lottery their prize moneys within seven days of the draw and at the times and places determined by the Board and published in the Gazelte,a newspaper or other medium of infomation with national coverage.
• (3)The prizes monies paid under this Act shall be exempt from income tax.
• (4)A prize that is not claimed within the time
• specified by the regulatory authority shall be forfeited and be paid to the Fund.
• (5)The right toa prize shall not be assignable but prizcsmay be paid to the administrator of adeccased
• winner'sestate.

Paymen of prite.

Prizes and tickets.

• (6)A ticket shall be deemed to beowned by a person whose signature or mark appears on it,and if no such signature or mark appears.by the bearer of the ticket.
• (7)The operator shall not be responsible for any lost
• or stolen tickets.
• (8)Aperson who loses a National Lolttery ticket shall report the lossto theoperator before a draw isconducted.
• (9)Where aticketwhich is reportedlostunder subsection (8)is picked as a winning ticket at a draw,the personreporting the loss shall be entitled to claim the prize payable upon meeting such conditions as the operator may specify.
• 41.(1) The regulatory authority may from time to time appoint a suitably qualifiedperson to audit theconduct of the National Lottery and report to the regulalory authority.
• (2)The audit under subsection (1)shall include an
• auditofthe following-
• (a) the organization's management and proccdures;
• (b)the system including ecosystem for selecting winning tickets and the methods employed to prevent fraud ormanipulation;
• (c)the manner of the recruitment,organization and supervision of the staff of the operator cngaged in-
• handling or processing and the selection of winning tickets:and
• (ii)installation,operation,maintenance,or repair ofcomputers.or other electronic devices.or devices ofany kind used for the purpose of a lottery orthe supervision:and
• (d)the compliance with this Aci and any regulations made thereunder in relation to a National Lottery.
• (3)A person appointed under this section shallreport to thercgulatory authority
• (a)at such intervals as the regulatory authority may determine in relationto any ofthe matters specified in subsection (2):and

Aubtor the Kaional Lottery.

• (b)from time to time in relation to anymatter relating
• toa lottery which the person considers should be reported to theregulatory authority
• (4)Aperson appointed under subsection (l),may
• enter the premises of the operator at all reasonable times recordskept by the operator whctherin documentary or in electronic form relating to a National Lottery and may take copies.or extractsfrom rccords.
• (5)Directors and employees of the operator who are
• involved in the conduct ofa lottery.shall give to a person appointed under this section such information in their possessionrelating to the lottery asmay be required by that person.
• (6)A director,employee or agent of the operator who fails or refuses to comply with a request made under this section,in relation to any information in his or her possession,or who obstructs or hinders a person appointed to perform his or her functionsunder this section,commits an offenee and shall be liable on conviction toa fine not exceeding five hundredthousand shillingsor lo imprisonment for a termnotexceeding oneyear or lo both.
• 42.(1) The gross revenue of a National Lollery shall be distributed by the National Lottery Board after taking into accountthefollowing-
• (a)prizes and tax for prizes;
• (b)operator's profit,tax and operating costs;
• (c)theregulatory.authority'soperational administrative costs;and
• and
• (d)the National Lottery Board's operational and
• administrative costs.
• (2)The amountpayableforoperational and administrative costs under subsection (l)(c)and (d)shall not exceed three per centum ofthe total gross revenue proceeds of the National Lottery for cach institution and shall be approved by the Cabinet Secretary responsible for finance.

Apporuonimem ot he peoceedsof iheNnonnl Lotery.

• (3)The operator shall pay monies due to the Fund under this scction on a weekly basis or at such other time as thc Board may determine.whichever is earlier.
• (4)The Cabinet Secretary for finance may upon consultation with the Cabinet Secretary and the Board detenmine the-operational and administrative costs under subsection (1)(c)and (d)above bascd on the preceding years gross revenue performance of the Nalional Lottery.

PARTY-THENATIONALLOTTERYFUND

• 43.(1) There is hercby cstablished a fund to be known as the National Lottery Fund.
• (2)The object of the Fund shall be to retain,and dishurse the proceeds of the National Lolttery in such manner as may bc prcseribed by this Act.
• (3)TheFund shall consist of
• (a)sums paid to the Fund under section 42:
• (b)interest from thc investment of money standing to
• the credit of the Fund;
• (c)accrued earnings from investments;
• (d)such monies or asscts asmay accrue to or vest in the Fund in thecourse of the exercise ofitspowers or the performance of its functions under this Act:
• and
• (e)all monies from any other source provided for or donated orlent to theBoard.
• (4)The procecds of the Fund shall be apportioned to the good causes set out in section 2l(3) by the National Lottery Board,in accordance withrelevant legislation and guidelines,in consultation with the Cabinet Secretary for approval by the Cabinet Secretary for finance for the succeedingyear atleastsixmonthsbeforethe commencement of the next financial year of govemment.
• (5)TheCabinetSecretary maymakeregulations prescribing any additional cniteria for consideration by the National Lottery Board whcnproposing the apportionments under subseetion (4).
• 44.(l)The Board shall be responsible for the general oversight of the Fund.

Euuhlishmentof

heNatioal Lollery Fund.

Overigha ofthe Fund,

• (2)Notwithstanding the generality of subsection (1),
• theBoard shall-
• (a)provide generaloversight on the administration of the Fund;
• (b)approve the opening and closing of the bank accounts of the Fund inaccordance tothe provisions of the Public Finance Management Act,No.so 20
• 2012:
• ()determine,in accordance with relevant legislation and guidelines,the amount of money that will be allocated to various programmes and projects to promotegood causes as provided forunder section
• 21(3),
• (d)approveinvestmentsoffundsnot required
• immediatelyin Govcrnment securities;
• (e)propose for approval by the Cabinet Secretary
• allocationsto bechannelledthroughthe govermmentagencies;
• (propose grantswithconditions orwithout Cabinet Secretary for the National Treasury.and the Council of Governors including providingof
• conditions to be allocated to county governments in consultation with the Cabinet Secretary,the matching funds,co-financing within govermment, specific programmes and projects to be funded by the grants;
• (g)propose for approval by the Cabinel Sccretary, statutory bodies or non-statutory bodies.or nonstale actors who mayreceive monics from the beneficiaries including any conditions attached to such granis to promote the object and purpose for
• Fundforfurtherdistributiontopotential which the Fund was established:
• (h)approvethe-disbursemcntsout ofthe Fundto further the objects and purpose of the Fund;
• (i)manage,control and administer the assets of the Fund in such manner and for such purposes as to best promote the purpose for which the Fund is established;

• (j)receive:any gifts.grants donations or endowments made to the Fund or any other moneys lent to the
• Fund:
• (k) cnsure that in any financial year,the distribution of the proceeds and the expenditure from the Fund and any surplus income brought forward from the
• shall not exceed the annual income of the Fund previousyear,
• ()advise the Cabinet Sccretary on matters relating to ofits
• the distributionand application apportionment of the revenue of thc National Lottery and any other matter which the Cabinet Seeretary mayrequire advice or gcneral direction;
• (m)ensure that the ceiling of the amount of money that may be spent from the Fund on administrative expenses,does not exceed five per centum of the total funds ina fiscal year:
• (n)advise the Cabinet Secretary on malters relating to he distribution pue applicationofits apportionmcnt of the revemue of the National Loltery and any other matter which the Cabinet Secretary may require advice or general direction:
• (o)develop guidelines on savings for persons who purchase the National Loltery tickets:and
• (p)perform such other functions as may be lawfully performed by the Board
• (2)The Board shall.while proposing and determining the allocation,setting the criteriaand conditions for accessing the Fund,cnsure cquitable distribution across the country including allocations to stale and non-state actors.
• 45.(l) The Board shall at least six months before Lhe beginning of cach financial year submit programme and projects being proposed for funding from the Fund tothe Cabinet Secretary indicating-
• (a)theprojectedamountofmoneyavailablefor
• allocation in the succeeding fiseal year,
• (b)theproposed percentum limits to be allocaled to the various good causes under cach eligible sector of
• the cconomy:

Asnoml programmes and projects.

• (c)the criteria to be applied inmaking allocations to various stateand non-state actors based on the
• approved policy for allocation ofresources under the Fund;
• (d)setting the per centum maximum limits to be
• applied for-
• administration costs of the Fund:
• various programmes and projecis under each
• (i) sector,
• (im) amount to be left in the Fund for unforeseen
• (iv)
• needs,
• amount to be sharcd among all counties as conditional orunconditionalgrantsin accordancewithArticle202ofthe Constitution:
• (v)
• allocation for sharingequitable shareof revenueraised from the National Loftery;
• (vi) capacity building forreceiving cntities for each fiscal year to promote transparency and accountability ofthe resources received from the Fund:or
• (vii)vetting out which allocations will be done
• through normal appropriationsor outside the normal appropriation;and
• (e)the framework for monitoring.evaluation and reporting on the application ofmonies received from theFund.
• (2)The Board shall,through regular publications, inform the public of its activities and operations and ensure that such activitiesand operations shall be accessible to the public.
• 46.(1) The ChiefExecutive Officer of theBoard shall
• be the Administrator of the Fund.
• (2)The Administrator of the Fund,shall be subject to the Board,be responsible for the day to day running of the affairs of the Fund.
• (3) In administering the Fund,the Administrator of the Fund shall-

Admlnisuaorot

the Fund

• the Board and the National Treasury:
• (b)supervisc and control the Aep—rep administration of the Fund:
• (c)in consultation with the Board,develop such policies asmay be necessary for the attainment of the objects of theFund;
• (d)consult with the Board on matters relating to the administration of theFund;
• (e)outsourceservices andenter intoand sign commcrcial contracts or agreements in furthcrance of the objects of theFund,with the approval of the Board:
• cause to be keptbooks of accounts and other books and records in relation lothe Fund of all activities and undertakings financed from the Fund:
• (g)be the custodian of the assets and property of the Fund;
• (h)open a registcr.of all beneficiaries who have received grants from the Fund and maintain a record ofthe amount disburscd and the balance thercof:
• (i)prepare,sign and transmit to the Auditor-Gcneral. in respect of cach financial year and within three months afterthe cnd ihereof,a statemcnt of accounts relating to the Fund and showing the expenditure incurred from the Fund,and such details as the Public Sector Accounting Standards Board may prescribe from time to time,in accordance with the provisions of the Act and Public Audit Act,2015:
• (j)prepare quarterly and annual financial and nonfinancial reports in a format prescribed by thc Public Sector Accounting Standards Board and submit the same to the National Treasury with copies tothe Controller of Budget and the Commission on Revenue Allocation:and

No.34of2015.

• (k)implement any recommendations from the Board
• for policy guidance in furtherance of the objects andpurpose of theFund.
• (4)The Administrator shall maintain an account for every person who purchases a National Lottery ticket for thepurposes of the saving component.
• 47.(1) The funds from the Fund shall be accessible to bothstate and non-state actors for the purposes of
• undertakingprojects and programmesforgood causes.
• (2)A person or institution shall not be cligible for
• funding from the Fund if the person or institution is not tax compliant.
• (3)A foreign institution shall not be eligible for
• funding from the Fund unlessthe institution-
• (a)is duly registered in Kenya:
• (b)has a localpresence;and
• (c)has evidence of current or ongoing interventions
• with significant impact to citizen and communities ofKenya.
• (4)An institution whose officials have not met any applicable prior clearance rcquirements shall not be eligible to receive funding from the Fund.
• 48.The financial year of the Fund shall be the period

he Fund.

Financidlyear or ibe Fund

• oftwelve months cnding on the thirtieth day of June in eachyear.
• 49.The Administrator may with the approval of the

Investmenrof

funds of the Fied

No.18of2012

• Board,invest any of the funds of the Fund,which are not immediately required for its purposes in accordance with the provisions of the Public Finance Management Act. 2012.
• 50.All receipts,earnings and accruals to the Fund,and the balance of the Fund at the close of cach financial year, shall be retained by theFund for use for the purpose for which the Fund isestablished.

Rclentionof receipts.

• 51.A person who misappropriates any of the funds or asscts of the Fund,or assists or causes any person to misappropriate or apply funds,otherwise than in the

Offenceof misappropriatinn and penalty.

SCHEDULE

CONDUCT OFBUSINESSANDAFFAIRSOFTHENATIONAL LOTTERYBOARD

Meertings.

Conflietof interes.

• 1.(l)The Board-shall mccl not less than four times in every financial year and notmore than fourmonths shall elapse between the date ofone meeting and the date of the next meeting.
• (2)Unless three quarters of the members otherwise agree,at least fourteen daysnotice in writing of a meeting shall begiven to every member.
• (3)Ameeting shall bepresided over bythe Chairperson or in the absence of the Chairperson,the members present shall appoint one of their-members to preside al the mccting-
• (4) Unless a unanimous decision is rcached,a decision on any matter before the Board shall beby a majority of the votes of the members present and voting.and in any case of an equality ofvotes,the chairperson or the person presiding shallhave a castingvote.
• (5)The chairperson shall.on the written application of one-third of the meimbers,convene a special mceting of the Board.
• (6)The Board may invite any person to attend any of itsmeetings and to participate in its deliberations,but such person shall not have a vote in any decision of the Board.
• 2.(1) Subject to subparagraph (2),the quorum of the meeting shall be two thirdsof the members.
• (2)A decision of the Board shallnot be invalid by reason only of a vacancy among the members thereof.
• 3.(1)If a person has a personal or fiduciary interest in any matterbefore the Board and is present at a meeting of theBoard or any committee at which such a maller is the subject of consideration,that person shall as soon as is practicable after the commencement of the meeting.declare discussion of,or vote on any question touching on such malter.

MEMORANDUM OFOBJECTSANDREASONS

The principal object of this Bill is to provide for a legislative frameworkfor the establishment and operation ofa National Lottery for the pooling of additional resources tobe directed togood causes and direct adequate funding to critical areas key to ensuring a socially responsible National Lottery.The Bill proposes framework for the conduct and regulation of the National Lottery.The followingare salient features of the Bill.

Part Icontains thepreliminary provisions.

Part Il (Clauses 4-20)contains provisions on establishment of the National Lottery Board as a body corporate,the composition of the Board, functions andpowers of the Board,the conduct ofbusiness and affairs and remuneration of the Board.Clauses1l-13provideforthe appointmentof the Chief Executive Officer,Corporation Secretary and other staff of the Board.Clauses 16-19 contain the financial provision of theBoard.Clause 20 provides for preparation and submission of quarterly and annual financial and non-financial reports to the national Treasury and its perfomanceand theperformance of the opcrator.

Part Ill (Clauses 21-32)provides for establishment of the National Loltery.the purpose of the National Lottery and the good causes to be facilitated by the National Lottery and provides for regulation of the Lottery by the Board.Clauses 23-25 provide for the procurement of the operator of the National Lottery and the licensing of the National Lottery by the regulatory authority and the duration of the licence.Clauses 26-27 provides for the obligation of the opcrator of theNational Lottery and the overriding responsibilitiesoftheCabinet Seeretary.theregulatory

authority.

Clauses 28-3lprovide for the enforcement provisions including variation and enforcement of the conditions of the licence,suspension and

revocation of thelicence.

PART IV(Clauses 33-42) provide for the conductofthe National Lottery including the games that can be conducted,the obligations to disclose the odds.persons eligible to participatc or are prohibited from participating in the National Lotfery,offences relating to.the National Lottery tickets,disclosure by agents,the manner of carying ouL draws and the payment of prizes. Clause 4l provides for the audit of the National Lottery by the regulatory authority.Clause 42provides for the apportionment of the proceedsof the National Lotiery.

PART (Clause 43-51) provide for the establishment of the National Lottery Fund whose object shall be for the purposes of retaining and disbursing theproceeds of the National Lolttery.Clauses 44-45provide for the oversight of the Fund and the by the National Lottery Board and the approval of the annual programmes andprojects to beundertaken through the Fund.Clause 46 designates the Chicf Executive Officer of the National Lottery Board as the Administrator ofthe Fund.Clause 47provides for the beneficiaries of the Fund.Clauses 48-50 contain financial provisions of the Fund. Clause 5l provides for the offence of misappropriation of any of the funds or assets of the Fund and the penalty for the offence.

Schedule provides for the Conduct of Business and Affairs of the National LotleryBoard.

Statement on delegation of legislative powers and limitation of fundamental rightsand freedoms

The Bill delegatcs legislative power to the Cabinet Secretary tomake Regulations.ThcBill doesnot limitany fundamental rightsor frecdoms.

Statement as to whether the Bill is a money Bill within the meaning of Article 1l4ofthe Constitution

The enactment of this Bill may occasion additional expenditure of publicfunds.

Statement as to whether the Bill Concerns County Governments

This Bill is a Bill is not conceming county governments within the meaningofArticle1i0 of the Constitution and theFourth schedule to the Constitution.

Dated the26th October,2023

KIMANIICHUNG'WAH Leader ofMajority.