The Gambling Control Bill, 2023 (1)

SPECIALISSUE

Kenya Gazette Supplememt No.212 (National Assembiy Bills No.70)

REPUBLICOFKENYA

KENYA GAZETTESUPPLEMENT

NATIONALASSEMBLYBILLS,2023

NAIROBl,31stOctober,2023

CONTENT

Bill for Introduction into the National Assembly-

The Gambling Control Bill.2023

PAGE

1899

THEGAMBLINGCONTROLBILL,2023

Clause

ARRANGEMENTOFCLAUSES PARTI-PRELIMINARY

I-Short title.

2-Intcrpretation.

3Objects and purpose of the Act.

PARTII-FUNCTIONSOFTHENATIONAL GOVERNMENTANDCOUNTYGOVERNMENTS

4Functions of the National Government.

5-Functions of County Governments.

PARTIII-ESTABLISHMENT OFTHEGAMBLING REGULATORYAUTHORITY

6Establishment of the Authority.

7-Board of the Authority.

8-Qualification for appointment to theBoard.

9Vacancy in the Board.

I0—Functions of the Authority.

11Codes of practice.

12—Powersof theBoardof theAuthority.

13-Conduct ofbusinessand affairsoftheBoard.

14-Committcesof the Board.

15-Remuneration oftheBoard

16Director-General.

17-Corporation Secretary,

18-Staff of theAuthority.

19-Delegation ofpowers of theBoard.

20-Seal of the Authority.

21-Funds of the Authority.

• 22-Financial year
• 23-Annualestimates.
• 24-Accounts and audit.
• 25-Reportsofthe Authority
• 26-Protectionfrompersonal liability.

PARTIV-LICENCESANDPERMITS

• 27-Licensed gamblingactivitics.
• 28-Requirementsfor licensing
• 29-Application fora licence.
• 30-Renewalofalicence.
• 31—Refusal to grant or renewa licence.
• 32-Revocation ofalicence.
• 33-Suspension ofa licence
• 34-Duration ofa licence.
• 35-Displayofa licence.
• 36-Transferofalicence
• 37-Investigation by the Authority.
• 38-Duplicate licence.
• 39-Register oflicences.
• 40-Security forgambling activity.
• 41-Gambling capital.
• 42-Books tobckept by a licensee
• 43-Submission ofaccounts bya licensce
• 44-Control ofgamblingmachines.
• 45-Gamblingtax.
• 46-Gamblinglevy.
• 47-Application fora permit.
• 48-Endorsement ofpermit.
• 49-Revocation ofa permit.
• 49-Form ofapermit.

• 50-Duration ofa permit.
• 51-Transfer ofa permit.
• 52-Display ofa permit.

PARTV-CONTROLANDLICENSINGOF LOTTERIES

• 53-Authorizationofa public lottery for charitable
• purposes.
• 54-Power of the Authority or county government with respect of a public lottery.
• 55-Authorization of a lottery relating to horse racing.
• 56-Lottery conducted for charitable,sporting or other purposes.
• 57-Lottery incidental to entertainment.
• 58-Licensing lotteriesincidental to sports orgames.
• 59-Private lottery.
• 60-Submission of audited accounts and returns in respect to a lottery.

PARTVI-CONTROLANDLICENSINGOF

BETTING

• 61-Bookmaker'slicence.
• 62-Totalisator'slicence.
• 63-Laying of totalisator,betting pool and odds.
• 64-Promoter's licence inrespect ofpool betting
• scheme.
• 65-Authorization of bookmaking at a race meeting.
• 66-Control ofbellingmachines.

PARTVII-CASINOS.SLOTMACHINESAND

OTHERFORMSOFGAMBLING

• 67-Casinos and other forms of gambling
• 68-Powers oftheAuthority to inspect.
• 69-Officers of the Authority to be present.

PARTVIII-ONLINEGAMBLING

• 70-Licensingofonline gambling.
• 71-Control ofonline gambling.

72-Online gambling transaction.

73-Payment of prizes and remittance of winnings.

• 74-Minimum amount a person can bet online.
• 75-Registration of a player.

76-Player'saccounts-to bekept.

77-Restriction on credit and inducements,

78-Restriction on dealingwith a player's money.

79-Player's account.

80-Inactiveaccount.

81-Financial reportingby aliccnsce.

• 82-Restrictionon foreignoperators.

83-Dispute resolution.

PARTIX-AMUSEMENTSWITHPRIZES.PRIZE COMPETITIONS,CHAINLETTERSAND GAMBLINGMACHINES

• 84-Provision of amusements with prizesat non-
• commercial cntertainments.
• 85-Provisionofamusements withprizeata commercialentertainment.
• 86-Amusement machines.
• 87-Authorization ofprize compelitions.
• 88-Authorization ofmediapromotions with prizes

89-Chain letters.

PARTX-ADVERTISEMENTOFGAMBLING ACTIVITIES

90-Advertisement of gambling.

PARTXI-THEGAMBLINGAPPEALS

COMMITTEE

91-The Gambling Appeals Committee

92-Remuneration ofmembersofthe Committee.

• 93—Appealsfrom decisions of the Committee.
• 94Conduct ofbusiness and affairs of the Committee.

PARTXII-OFFENCESANDPENALTIES

95-Offencesrelating to gambling premise.

96-False declaration.

• 97-Transfer ofa licence without approval by the Authority.

98Failure tokeepproperbooksof accounts.

99-Failure to submit accounts.

100-Failure to pay levy or aprescribed fee.

101-Operatingwithout a licence orpermit prohibited.

102-Advertisemenis ofunauthorized lotteries.

103-Sale or distribution ofunauthorized tickets.

104-Prohibitionagainst unlicensedbookmaking

105-Prohibition of late bets.

106-Promotionof unauthorized pool betting.

107-Offencesrelating topoolbettingschemes.

108-Unauthorizedbookmaking.

109-Unauthorizedracing.

110-Prohibition against touting.

• I1l-Prohibition against playing games of chance on
• licensed betting premises.

112-Prohibition against bettingwith a child.

• 113-Obtainingmoney by cheating in a lawful gambling or by wagering on an event.

114-Consideration by a court.

PARTXIII-MISCELLANEOUSPROVISIONS

115-Appointment of inspectors.

116-Power to enter and inspect land and premises.

117-Offencesbybodycorporate.

118-Self-exclusion.

• 119-Forfcitureof licenceorsecurity
• 120-Power to seizemachines
• 121-Prosecution ofoffences.
• 122-Power tomakeregulations
• 123-RepealofCap.131.
• 124-Transitional Provisions.
• 125-Transition of licences andpermits.
• 126-Consequential amendments.

FIRSTSCHEDULE-PROVISIONS

RELATINGTO CONDUCTOF BUSINESSAND AFFAIRSOFTHE BOARDOFTHE AUTHORITY.

SECONDSCHEDULE-LICENSINGFEES.

THIRDSCHEDULE-DECLARATIONS

FOURTHSCHEDULE-GAMBLING

SECURITY.

THEGAMBLING CONTROLBILL,2023

ABill for

AN ACTofParliament toprovide forthe regulation of betting,casinos and other formsof gambling; authorization of prize competitions and public lotteries;for the establishment of the Gambling Regulatory Authority:for the imposition of tax on betting and other forms of gambling,and for connectedpurposes

ENACTED by theParliamentofKenya,as follows-

• 1.This Act may be cited as the Gambling Control
• Act,2023.
• 2.In this Act,unless the context otherwise requires

"Authority" meanstheGambling Regulatory

Authority established by section 6;

"authorized race meeting"means a race meeting in respectofwhich apermit authonizingbookmakinghasbeen

issued under this Act;

"amusement gamemeans a game that is played by means of an amusement machine with a restricted pnize,

"anusement machine"means a machine or a device whether operated electronically,manuallyorotherwise on which an amusement game is played exclusively for

or amusement machine token,and includespool tables,

"bet"means a wager or stake of money or money's worth,or any other valuable thing by or on behalf of any person,agreement to wager or stake by or on behalf of any person money or a valuable thing on a horse race,fight game,sport,lottery or cxercise or any other event,race or

contingency,

"betting premises"means premises used for the purposes of betting to which the public has access and which are kept or used (whether on one occasion or more than one) for thepurposeof

• (a)bets being madetherein between persons resorting to the premises and the owner,occupier
• orkeeper thereof or any person using the

Short tite

Interpretntion.

premises,or any person procured or employed by or acting for or on behalf of the owner,occupier, keeper or person using the premises,or of any person having the care or management or in any manner conducting the business thereof.or

• (b)Any money or valuable thing being received by or on behalf of the owner,occupier,keeperor person aforesaid as or for the consideration for anyassurance, undertaking. promise agreement,express or implied,to pay or give,or for securing the paying or giving by some other person of,any money or valuable thing on any horse race,or other race,fight, game,sport, lottery or exercise,or anyother eventor contingency:

"bettingtransaction"includes the collectionor payment ofwinnings on a bet and any transaction in which

one ormore ofthepartiesisacting asa bookmaker,

"bingomeans a game where a player marks off numbers required and includes playing by electronic means

numbers on cards or screens as the numbers are drawn randomly,the winner bcing the first to mark off all the orbyonline communication:

"Board"means the Board of the Gambling Regulation Authority constituted in accordance with section 7of this Act.

bookmakermeans a person who,whether on his own account or as a servant or agent to another person, camies on,whether occasionally or regularly.the business ofreceivingand negotiating bets excluding-

• (a)a person who carnieson,or isemployed to operate a totalisator inrespect ofwhich a licence
• hasbeen issued under this Act,or
• (b)a person employed in a business that is wholly concermed with a pool betting scheme in respect ofwhich a licence has been issued under this Act:

"Cabinet Secretary"means the Cabinet Secretary for

thetimebeingresponsible formattersrelating togambling.

"casinomeans any designated premise or part of a premise,approved virtual or online platfom or a site where aperson may participate in a game approved by the Authority,

"chain letter"means a scheme or an investment promising a high rate ofretum made up ofmoney from a gamblingoperator or licenseeluringaplayer into abigger risk,

"Collector" means theCommissioner-General appointedunder section 1lofthe KenyaRevenue Authority Act,1995,

"Committee" theGambling Appeals

means Committee established by section90,

"coupon"in relation to a pool betting scheme or proposedpool betting scheme,includes adocument connected designed to assist in themaking of a bet by way ofpool betting,

"Director-General"means the Director-General of the Authority appointed under section 16;

"electronicdevice"means an electrical,digital, magnetic,wireless,optical,or electro-magnetic device used ingambling:

"Fund"means the National Lottery Fund established

by section 43 of the National Lottery Act,2023;

"gambling"means the playing of a game of chance for prize winningandincludeslottery betting.prize competitions,and media promotions with prizes;

gambling equipmentmeans any software,device, instrument,including a chip.a token,a voucher or any other instnument with a fixedmonetary wagening value used instead ofmoney for the purpose of gamblingtokens dice,counter,ticket,gambling table,board,box,bird or an animal used forpurposesofor capable ofbeingused for or in connection with gambling and includes

• (a)a linked jackpot equipment,
• (b)an electronic monitoring system including any electronic,computer,communications system or device used or adapted to send orreceive data from agamblingequipmentinrelationto security.accounting.monitoning.evaluation or operation ofgambling andgambling equipment;

No,2of 1995

• (c)any online gambling machine;or
• (d)part ofa replacement or part of any gambling
• machine equipment or system,

gambling machine"means any device which is operated electronically or mechanicallyor both electronically and mechanically that is designed for-

• (a)placing bets for playing a game of chance which does not require action by a player other than the manipulation of the machine;
• (b) playing a game of chance which requires no actionbya player other than the manipulation of
• the machine,or
• (c)the purpose of playing a game of chance or a game of fixed chance and skill which may result inpayable winnings,

gambling premises"means premises which are kept orused,whether on one or more than one occasion,for gaming.and to which the publichas or may have access for the playing therein of a game of chance,whether the game of chancebe an unlawful game ornot

"gambling platformmeans a system that offers a full range of services for effecting a gambling activity:

to facilitate any component of an activity for gambling and may beprovided by anintermediary;

game of chance"includes a game of chance and skill

combined but doesnot include an athleticgame or sport;

"good cause"means a charitable cause or an event for charity,

"grossgamblingrevenue"meanstotalrevenue received from a gambling activity before any deductions are made.

"horserace"includesa pony race,

jackpot" means the highest prize resulting from a combination ofleltters,numbers,symbolsor representations displayed or advertised in a game of chance and payable either from a fixed prize schedule or accumulates as contributions are made to a special prize pool;

"licensee"means a person issued with a licence under this Act,

"licensed betting premisesmeans premises duly

licensed where bets may be made and settled;

"lottery" includes a sweepstake,a raffle and any scheme,arrangement, system plan or device for the sale. gift,disposal or distribution of any property depending upon or as determined by a slot or a chance,whether by throwing or casting a dice,or by withdrawing a ticket,card slotnumbers or figures,or by means ofa wheel,or otherwisehowsoever,

lottery ticket"means any document or electronic evidence entitling a person toparticipate inalottery chance,

"manufacture"means to produce,import, sell,lease,

make available,distribute,maintain or repair a gambling device and may include-

• (a)to supplier,
• (b)to performs maintenance ofgambling equipment;
• or
• (c)provider of gambling services;

"NationalLottery"means thenationallottery established under section 2l of the National Lottery Act, 2023,

"odd"means a gambling chance,

"online gamblingmeans any form of gambling by

means ofa remote communication;

"personincludes a partership,association,trust,ora

juristicperson establishedby operation ofany other law,

"playermeans a person who is in possession of a validticketfora lottery orapromotional competition,

pool bettingmeans the making of a bet where the bet ismade through a fixed odd by aperson on agreed terms in reference to stake paid or agreed to bepaid by the

parties,

"pool betting scheme"means a scheme involving the receiving or negotiating of bets made by way of pool betting, prize"means the prize awarded to a winner ofa lottery oraprizepromotion;

"race meeting"means a gathering of the public or of members of an associationof persons to watch an authorized horse race or any other related race,

"record"includes any book,account,document,paper orother sourceofinformation compiled,recorded,storedin written form or on micro film,or by electronic process,or in any other matter or by any other means,

"security"means any deposit provided as security

under this Act;

"slot machine"means any mechanical,electrical or other device,contrivance or machine that is metered and which is able to recordhistoryof play,which,upon insertion of acoin,token or similar object,or upon payment of any consideration,is available to play or operate,the play or operation of which,whether by reason of the skill of the operator in playinga gambling game which ispresented for play by the machine or application of the element of chance,or both,may deliver or entitle the person playing or operating the machine to receive cash premiums,merchandise,tokens or anything of value, whether thepayoffis made automatically from the machine orin any other manner,

"stake"means money or money's worth that a player may risk to make a bet or buy into a gamblinggame;

"testing agent"means a person licensed under this Act lotest and calibrate gambling machines,equipment or devices,

"totalisator"means an instrument,amachine,a contrivance,or a scheme for enabling any number of persons to make bets on any event or conlingency and includesa device showing the number and amount ofbets staked in a race,

"ticket"in relation to any lottery or game of chance, includes any written or electronic document evidencing the claim of a person to participate in a lottery or a game of

chance,and

"winning"the difference between the bet or stake

placed by a punter and thepay-out received on receipt ofa prize.

• 3.The objects and purpose of this Act is to
• (a)provide a framework forregulation and control of
• gambling activities,
• (b)authorise some gambling activities and prohibit the rest asunlawful gambling:
• (c) promotethedevelopmentofaresponsible
• (d)
• gamblingindustry,
• minimize social harm associated with gambling.
• (e) ensure integrity and fairmess in licensed gambling achivities,and
• ()provide for the establishment of mechanisms for resolution of disputesrelating to gambling

PARTII-FUNCTIONSOFTHENATIONAL GOVERNMENTAND COUNTYGOVERNMENTS

• 4.(1)TheNational Government shall
• (a)establish policies,norms and standards for the conduct of betting.lotteries,casinos and other forms of gambling,
• (b)regulate the gambling industry in accordance with
• Act,
• licence gambling activities including online
• C gambling in accordance with this Act,
• (d)licence national lotteries,
• (e) conduct security checks,vettingand due diligence in respect of gambling activities;
• enforce compliance with this Act,
• (g) conduct anti-money laundering risk-based
• inspections and inspections to combat financing of terrorism through casinos and any other forms ofgambling.

Ohjects and pupose ofthe Act

Punctions af the National Goveriment.

• (h)pursuant to section 36A of the Proceeds of Crime and the Anti-moneyLaunderingAct2009 supervise and enforce compliance with that Act or any instnuction,direction,guideline or rule made pursuant to or in terms of that Act by all licensees;
• provide capacity buildingand technical assistance to county governments,and
• D perform any other function as may be prescribed under this Act or any other written law.
• (2)In the discharge of its mandate under subsection (1).theAuthorityshallcollaborate.with county governments and county gambling regulatory authorities in the discharge of functions relating to betting.lottenes, casinos and other formsof gambling.
• 5.A county govemment shall
• (a)enforce compliance ofthisActandother applicablelaws,
• issue single business permits for gambling
• (b) premises;
• implementpolicy standardsand normsof
• gambling.within itsjurisdiction,and
• (d) periodic monitoring and evaluation of betting lotteries and gaming licensed by counties,
• (e) handling of complaints and arbitration
• perform such other functions as are incidental to the exercise of anyor all ofthe county government functions provided for under this AcL

PARTIIIESTABLISHMENTOFTHEGAMBLING REGULATORYAUTHORITY

• 6.(1) There is established an Authority to be known as the Gambling Regulatory Authority
• (2)The Authority shall be a body corporate with perpetual succession and a common seal and shallin its corporate namebe capableof

No 9of2009.

Functionsaf counly

govemments.

Establishmntef the Authorty.

• (a)taking.
• purchasingor otherwise acquiring. holding.charging and disposing of movable and immovable property:
• (b)
• borrowingmoney:
• (c)
• entering into contracts,
• (d) suing and being sued,and
• e) doing or performing all such other acts necessary for the performance of its functions under this Act which may be lawfully done orperformed by abody corporate.
• (3)The Authority shall be the successorof theBetting Control and LicensingBoard established under section 3 of
• the Betting,Lotteries and Gaming Act(now repealed)
• (4)Subject tothis Act, all the rights,duties, obligations,assets and liabilities of the Betting Control and Licensing Board existing at the commencement ofthis Act shall be automatically andfully transferred to the Authority.
• (5)The headquarters oftheAuthonity shall bein Nairobi,but the Authority may establish offices at such other places in Kenya as may be necessary for the
• execution ofitsmandate.
• 7.(1) The management of the Authority shall vest in a
• Board which shall consist of
• (a)a Chairperson who shall be appointed by the
• President;
• (b)the Principal Secretary responsible for matters relating to Interior and National Administration
• ora representative designated in writing.
• (C) thePrincipal Secretaryresponsible for the National Treasury or a representative designated in writing.
• (d)the Attorney-General orarepresentative
• designated in writing
• e three persons,not being public officers appointed by the Cabinet Secretary with knowledge and
• experience in matters connected with the objects

Cap.131.

Boardefthe Authority.

• ofthe board and shall include personswith background in finance,law,betting and lotteries business management,or any other relevant field;
• 中 one person nominatedby theCouncilof Governors and appointed by Cabinet Secretary: and
• (g) the Director-General who shall be an et officio member.
• (2)The appointment ofthe Chairperson and members appointed under subsection (1)(a),(e)and (f) shall be by name and notice in the Gazette.
• (3)The Chairperson and members ofthe Board appointed under subsection (l)(a),(e)and (f) shall hold office for a term of three years and shall be eligible for reappointment for one further term-of threeyears.
• (4)The persons to be appointed under subsection
• 7(1)(a)and (e)shall be selected through conventional board resourcing procedures includingthrough applications. referralsand knowledge of the market and industry actors
• (5)The members of the Board shall be appointed at different times so that the respective expiry dates of their terms of office fall at different times.
• 8.(1)A person shall be qualified for appointment as the Chairperson or a member of the Board,if the person-
• (a)is aKenyan citizen,
• (b)holds a university degree from a university
• recognizedinKenya,
• (c)has a minimum of ten years working experience
• inarelevant field;
• (d)has not served in the same entity as an employee in the preceding fiveyears,
• e meets-the requirements of Chapter Six of the
• Constitution,and
• has submitted to the Cabinet Secretary a written declaration stating that the person does not have any interests in the gambling sector or an-interest in a business or enterprise that may conflict or

Qualification for appointent tothe

Board.

interfere with the proper performance of the duties ofa member of theBoard.

• (2)A person shall not be appointed asa Chairperson ormember of theBoard if theperson-
• (a)is an undischarged bankrupt,
• (b)has been convicted of acriminal offence and sentenced to imprisonment for a term exceeding six months;
• C) at the time of appointment holds a political
• office,
• (d)haspreviouslybeen removed from a public office onaccount ofmisconduct or any other lawful reasons,or
• (e)in the last twelve months immediately preceding the appointment,had personal direct or indirect commercial interest in the sector regulated under this Act.
• 9.(1) The office of the Chairperson ora member of the Board appointed under section 7(1)(a).(e)and (f) shall become vacantif the holder-
• (a)dies;
• (b)resigns from office by notice in writing,in case ofthe Chairperson,to the President and,in case ofa member,to the Cabinet Secretary;
• isconvictedofanoffenceandsentencedto imprisonment for a term exceedingsixmonths;
• (d)has been absent from three consecutive meetings of the Board without a notice to the Chairperson,
• or
• (e)is removed in accordance with subsection (2).
• (2)A member ofthe Board may beremoved from
• office for--
• (a)violation of the Constitution or any other law,
• (b)gross misconduct,whether in the perfommance of
• the functions of the office of a member or otherwise,

Board.

• (c)physical or mental incapacity to perform the functions of the office ofa member;
• (d)incompetence,or
• (e)bankruptey.
• (3)The Cabinet Secretary shall ensure that any vacancy in the Board is filled as soon as practicable in accordance with theprovisions oftheAct
• 10.(l)The Authority shall-
• (a)develop standards andnorms for betting. lotteries,casinos and other forms of gambling
• regulate and control gambling activities;
• (b)
• (c)
• issue licences for gambling activities prescribed under this Act,
• (d)develop policies for placing of bet for beting. lottenies and gambling that include a savings component for social health insurance or social retirement benefit,
• e) monitor the implementation ofgambling policies at the national and county level,
• establish and maintain a register of all gambling machines and devices,and other relevant data on licensed gambling activities.
• (g) conduct security checks,vetting and due diligence in respect of gambling activities, licensees,their shareholders,directors and staff
• (h)establish an electronic central real time gambling monitoring system to monitor compliance with regulatory requirements,
• (i)monitorsocio-economic patterms of gambling activities within at the national and countylevel including toundertake research and identify factors relating to.and patterns,causes,and consequences of
• (i)the socio-economic impact ofgambling,
• (ii)addictive or compuisive gambling:and

Functons ofe

Authority

• (ii)any other matter that is relevant to the
• gambling sector,
• 1 investigate,monitor and evaluate compliance with policies and regulations made under this
• Act,
• (k) coordinate research and surveys relating to the gambling industry;
• 1
• monitor socio-economic patterns of gambling activities,
• (m)monitor andalleviateillegalcrossborder
• gambling activities in collaboration with county govemments,
• (n)advise county governments on matters relating to
• the regulation of gambling activities;
• (o) receive complaints from companies andthe public on matters pertaining to games of chance,
• and
• (P) establish programmes to improve the capacity of county governments on matters relating to the regulation ofgambling activities,and
• (q)perform any other functions conferred by this Act orany otherwnitten law.
• I1.(l)The Authority shall issue one or more codes of
• practice on the manner in which facilities for gambling are provided,whether by the holder of a licence under this Act or by any otherperson.
• (2)In particular.a code issued under subsection (1) shall descnibe arrangements that should be made by a person providing facilities for gambling for the purposes of-
• ensuring that gamblingis conducted in a fair and
• (a) open way.
• (b) protecting children and other vulnerable persons from being harmed or exploited bygambling:
• C) making assistance available topersons who are.or
• may be affected byproblems related to gambling:
• (d)protecting ofvulnerable gamblers:

Codes of practioe

• (e)information and data protection in accordance with the Data Protection Act,2019,
• (f)online payment protection;
• (g) creation of secure online gambling environment, No,24of2019.
• (h) ethical and responsiblemarketing.
• safety measures against criminal activities,antimoney laundering and terrorism,and
• ()public awareness andeducation campaigns
• (3)A code issued under subsection (l)may include provisions about how facilities forgambling are advertised ormarketed
• (4)The Authority may revise or revoke a code.
• (5)The Authority shall state the date a code,and any revision,shall come into force
• (6)The Authority shall publish a code and any revision in such manner as the Authority may consider likely to bring it to the attention of those whose activities it relates to.
• (7)The Authority may make different provisions under this section for different cases or circumstances. whether ornot by way of separate codesofpractice.
• (8)A failure to comply with a provision of a code shallnot of itself make a person liable to criminal or civil proceedings:

Provided that this subsection shall be subject to any provision of this Act making an exception to an offence dependent on compliance with a code

• (9)A code issued under subsection(l) shall
• (a)be taken into account by the Authority in the exercise of any ofits functions under this Act,
• (b)be admissible in evidence in criminal or civil proceedings;and
• (c)be taken into account by a court or tribunal in any case in which it appears to the court or tribunal to
• berelevant

• (10) Before issuing or revising a code under this
• section the Authority shall consult
• (a)the Cabinet Secretary;
• (b) Commissioner-General of the Kenya Revenue Authority:
• anypersonwhorepresentstheinterestsof persons who carry on gambling businesses and are likely to be affected by the code or revision,
• any persons who has relevant knowledge about socialproblemsrelating to gambling.and
• e) where a code includesprovisionsrelating to how facilities for gambling are advertised ormarketed any person who has relevant responsibility for
• regulating the advertising industry
• (11)Before issuing or revising a code under this section the Authority shall also consult,if and to the extenl that the Authority considers appropriate having regard to
• the nature of the code or revision
• (a)any person who represents licensing authorities,
• (b) any person who represents the Inspector General
• ofPolice;
• (C) anyperson whorepresents theinterestsof punters,and
• (d)the membersof public in such manner as the
• Authority considersappropniate.
• 12.(1)The Board shall have the powersnecessary for
• the performance of its functions under this Act, the Board shall havepower to-
• (a)manage,control and administer the assets of the Authority in such manner and for such purposes asbest promotes the purpose for which the Authority is established;
• (b) receiveanygifts,grants, donations or endowments made to the Authority or any other moneys in respect of the Authority and make disbursements therefrom in accordance with the provisions of this Act.

Powers afthe

Board of the Authority.

• (c)conduct such investigations as may be necessary for the enforcement of this Act,
• (d)inquire into any complaint against a licensee,
• the Authority detemmine may from time to time.
• (2)The Board shall approve the opening.operating and closing of bank accounts of the Authority with the approval of the National Treasury
• 13.(l)The procedure for the conduct ofthe business and affairs of the Board shall be asprovided in the First Schedule.

Conduct of businass ahd allairsofthe Board.

• (2) Subject to the First Schedule,the Board shall regulateits own procedure

Committees of Ihe Hourd

• 14.The Board may establish such committees as it may consider necessary to assist it in the performance ofits functions and the exercise of any of its powers.
• 15.The members of the Board shall be paid such allowances and disbursements,for expenses,as may be determined by the Cabinet Secretary in consultation with relevantgovermmentagencies

Remuneration of the Bonrd.

• 16.(1)There shall be a Director-General of the Authority who shall be appointed by the Board through an and conditions as the Board may in consultation with relevant government organs,detemine.
• (2)A person shall be qualified for appointment as the Director-General if the person
• (a)is a citizen of Kenya;
• (b)holds a degree from a university recognized in Kenya,
• (c) has at least ten years'expenience in senior management in a public or a private institution and
• (d)satisfies the requirements of Chapter Six ofthe Constitution.
• (3)TheDirector-General shall be

Direclor-Gemenal

• (a)the Chief Executive Officer of the Authority;
• (b)the custodian of all the records of the Authority
• C) responsible for
• (i)the day-to-day management of the affairs and
• staff of the Authority:
• (ii)facilitating. coordinatingandensuring execution of the mandate of the Authority.
• (i)themanagementandmaintenanceof
• efficiency of the staff of the Authority
• (iv) the execution of decisions ofthe Board:
• preparing and submitting for approval,by theBoard,progranmes of work for the achievementofthemandate ofthe Authority,and
• (vi)the performance of such other duties as may beassignedby theBoard orany written law.
• (4)The Director-General shall serve for a termof three years and shall be eligible for re-appointment for one further term of three.years.
• 17.(I)The Authority shall competitively recruit a person qualified,in terms of the law governing thepractice ofpublic secretaries in Kenya,to serve as the Secretary to
• the Board.
• (2)The Secretary to theBoard shall
• (a)provide guidance to the Board on the Board's duties,responsibilities and powers;
• (b)ensure that Board follows its procedures and complieswiththerespectivelawsand regulations,
• (c) prepare the Board's work plans and assist the Chairperson to organise the activities of the Board including meetings,agendas ofmeetings issuing notices to other members of the Board, circulatingBoard papers beforemeetings. keeping a record of attendance at meetings,

Corporation Secretary

• (d)take and keep the minutes of the meetings of the Board,and circulating the minutes to the members ofthe Board
• (e)keep a record of the usage ofthe seal of the Authority:
• (f)keeping a record of the appointmentletters, notices ofappointment and the written acceptance ofappointment by members of the Board;
• (g)keeping a record of conflicts ofinterest declared by each memberof the Board,and
• (h)perform such.other duties as the Board may direct.
• 18.The Authority may appoint such number of professional,technical and administrative staff for the Authonity as it may consider necessary for the discharge of its-functions,on such terms and conditions as the Board may determine,in consultation withtherelevant Govermment agencies.

Staffofthe Aothority

• 19.The Board may by resolution,either enerally or Deleginf
• in any particular case,delegate to any committee of the Board or to any member,officer,employee or agent of the Board,the exerciseof any ofthepowersor the performance of any of the functions or duties of the Board under this Act or-under any otherwritten law.
• 20.(1)The common seal of the Authority shall bekept inthe custody of the Director-General or such other person as the Board,may direct and shall not be used except upon the orderoftheBoard
• (2)The common seal of the Authority shall be authenticated by the signature of the Chairperson of the Board and of theDirector-General:

Provided that the Board shall,in absence ofeither the Chairperson orthe Director-General,in any particular matter nominate one member ofthe Board to authenticate the seal of the Authority on behalf of either the Chairperson ortheDirector-General

• (3)The common seal oftheAuthority.when affixed to a document and duly authenticated,shall bejudicially and officially noticed and unless the contrary is proven,any

powers.ofthe Board.

Sealafihe

Authority necessary order or authorization by the Board under this section shall bepresumed to havebeen dulygiven

• 21.The funds of the Authority shall comprise of
• (a)such monies as may be appropriated by the
• National Assembly for purposes of the Authority;
• (b)the gamblinglevy paid under section46:
• (c)the moneys paid by the operator of the National Lottery under section 42(1)(c)ofthe National Lottery Act,2023,
• d such monies as may accnue to or vest in the Authonity in the course of the exercise of its powers or the performance ofits functions under this Act,
• e) such license fees,charges and penalties as may be prescribed and approved by the Cabinet Secretary inconsultation with the Cabinet Secretary
• responsible forNational Treasury;
• interest from the investment of money standing to the credit of the Authority:and
• (g)all monies from any other source provided for,
• donated or lend to theAuthority
• 22.The financial year of the Authority shall be the period of twelve months ending on the thirtieth June in every year.
• 23.The annual estimates of the Authority shall be prepared and approved in accordance with the Public
• FinanceAct2012.
• 24.(1) The Authority shall cause to bekept all proper books and records of accounts relating to the income, expenditure,assets and liabilities of the Authority
• (2)The accounts of the Authority shall be prepared and audited in accordance with the Public Finance Act 2012and Public Audit Act,2015
• 25.(1)The Authority shallprepare quarterly and annual financial and non-financial reportsin a format prescribed by the Public Sector Accounting Standards Board and submit the same to the National Treasury with

Funds of the Authority.

Finncial year.

Aniul estimates No.18of2012

Accoumtsd

No.18of2012.

No.34of2015.

Reportsofthe

Authority

• copies to the Controller ofBudget and the Commission on Revenue Allocation
• (2)The Authority shall continuously and on a regular basis monitor and report on its performance and on the performance of all of itslicensees on a quarterly basis,with a summary ofperformance reported through Authoritys annualreport on the basis ofaclear outcome-based performance frameworkdevelopedbythe National Govemment
• 26.No matter,thing or aci done by a member of the Board,an officer,employee or agent of the Authority shall if thematter or thingis done in good faith in the course of executing the functions,powers of member of the Board officer,employee or agent of the Authority shall,if the mater or thing is done in good faith in the course of executing the functions,powers or duties of the Authority under this Act,render the member,officer,employee or agent or any person acting on their directions personally liable for any action,claim or demand whatsoever.

PARTIV-LICENCESANDPERMITS

• 27.(1)A person shall not offer any gambling activity orservice unless the activity islicensed under thisAct.
• (2)The Authority shall issue gambling licences under
• thisActwith respect to-
• (a)a public gambling for conducting a table game and operating a slot machine;
• (b)the national lottery,
• (c)abookmaking.
• (d)licensing ofon-the course and off-the course
• totalisators,
• (e) aprize competition,
• (f)a bingo,
• (g)a pool betting scheme;
• (h)publiclotteries as under section 53(2);
• (i)an online gambling.
• G)
• gambling equipment and device manufacture or assembling,

Protectian from

Licensed gambling activities,

• gambling equipment anddevicesaleor
• (k) distribution,
• gambling equipment testing:
• (m)provision ofany gambling software or platform;
• (n)gambling equipment repair and servicing;
• (o)key gambling employees;
• (P) accreditation licence for a person engaged innongambling activity within a gambling premise;and
• (q)all media promotions with prizes and prize
• competitions cutting across several counties,
• any other form of gambling asit deems fit.
• (3)The Cabinet Secretary shall in consultation with the Authority,make regulations for the classification of
• licensesissued under this Act
• (4)In this section,"gambling employee"means a person who is employed or authorized,to make a decision that regulates the operations of a casino,bookmaker, lottery,racecourse or any other form of gambling.
• 28.(1)Aperson shall not be licensed to offer any
• person-
• (a)is a body corporate in which a minimum of thirty per cent of shares are held by Kenyan citizens; and
• (b) maintains an account with an authorized financial institution registered in Kenya into whichit pays allmonies relating to the licensed gambling and lottery activity.
• 29.(l) An application for a licence shall be made in the prescribed form and,be accompanied by
• (a)the application fee prescribed under the Second
• Schedule,
• (b)sufficient evidence to show that the applicant is in possession of, or commands the prescribed gambling capital;

licensing

Applicationfora licenee

• (c)security by way of such insurance bond or bank
• guarantee as security as may be prescribed under the Act or regulations,
• (d)information from the applicant of the proximity ofthe intendedpremise to a learning institution;
• (e)declarations as provided for in the Third Schedule,
• such otherinformation asit mayconsider necessary to enable the Authority to determine the application,and
• (g)a declaration of the good causes the applicant
• intends toundertake and the proposed budget devoted to the good causes.
• (2)The Authority shall vet all applications for a licence under this Act
• (3)The Authority shall,in determining whether an applicant is suitable to holda licence or permit under this Act,consider-
• (a)the financial status or solvency of the person;
• (b)the educationalorotherqualificationsor
• experience of the applicant having regard to the nature of the functions which,if the application is granted,the person shall perform;
• (c)the status of any other licence or approval granted to the applicant by any financial sector regulator,
• (d)the ability of the applicant to carry on the regulated activity competently,honestlyand
• fairly,and
• (e)the reputation, character,financial integrity and reliability of the company,its chairperson, directors,chief executive,management and all other personnel,including all duly appointed agents,and any substantial shareholder of the company.ifthechairperson,director,chief executive, managementofthe personnel are
• shareholders of the company.
• (4)Without prejudice to the generality of subsection (1).the Authority may.in considering whether an applicant

isfit and proper

• (a)take into account whether the applicant
• (i)has contravened any law in Kenya or
• elsewhere designed for the protectionof members of the public against financial loss duetodishonesty. incompetence or malpractice by personsengaged in transacting with marketable securities;
• (ii)was a director ofa licensed person who has
• been liquidated or is under liquidation or statutory management;
• (ii) has taken part in any business practice which,in the opinion of the Authority,was fraudulentprejudicial to the market or public interest,or was otherwise improper, whichwouldotherwisediscreditthe applicant's methods of conducting business;
• (iv)has taken part or has been associated with any business practice which casts doubt on the competence or soundnessof judgment of
• that applicant;or
• has acted in such a manner as to cast doubt on the applicant's competence and soundness
• ofjudgment,
• possession of the Authority,whether provided by the applicant or not,relating to
• (i)any person who is to be employed by associatedwith,or who shall beacting for or on behalf of,the applicant for the purposes ofa regulated activity,including an agent;
• and
• (i)where the applicant isa company in a group of companies,any other company in the same group of companies,or any substantial shareholder orkeypersonnel ofthe company or any company referred to under this subparagraph:

• (c)take into account whether the applicant has established effective internal control procedures and risk management systems to ensure its compliancewithallapplicableregulatory requirements,and
• (P) have regard to the state of affairs of any other businesswhichtheapplicantcarriesonor purports.tocamy on
• (5)The Authorityshall give the applicant an applicant isfitand proper for thepurposes of thisAct.
• (6)An applicant who knowingly makes a false statement or declaration in an application for,or a renewal or variation of.a licence or permit commits an offence and shall,upon conviction,be liable to a fine not exceeding one million shillings or toimpnsonment fora term not exceeding oneyear,or toboth.
• (7)For the purposes of this section,"group of companiesmeans any two or more companies,one of which is theholdingcompany of the others
• (8)The Cabinet Secretary may in consultation with the Authority prescribe the percentages of the gross gambling revenue that a licenseemay berequired to devote to good causes asa condition for a licence.
• (9)The Authoritymay grant alicence upon considering all therequirements under this section.
• (10) The Authority shall within fourteen days of issuance of a license under this section,transmit a copy of
• thelicence to therelevant county government
• 30.(1) The Authoritymay,on application bya licensee,renew a licence for a further peniod provided for
• in subsection (3)
• (2)An application under this section shall
• (a)be made in the prescribed form and forwarded to the Authority togetherwith the prescribed fee
• (b)be lodged with the Authority at least three
• months prior to the expiry of thelicence,and

licence,

• (c)be considered in accordance with the provisions of section 29
• (3)The Authority may renew a gambling licence after
• expiry of theperiodprescribed inregulation
• 31.(1)The Authority may refuse to grant or renew a
• licence ifitissatisfied that-
• (a)the information contained in the application is false or untnue in any material particulars,
• (b)the application does not meet anyof the requirements for the issuance or renewal ofa
• licence,or
• the application is not in conformity with the obtaining policy regarding use of any software
• system as.maybedeterminedbythe Communications Authority of Kenya from time totime.
• (2)Where the Authority refuses to grant or renew a
• licence.it shall forthwith notify the applicant inthe prescribed form stating thereason for such refusal.
• (3)Aperson aggrieved by the decision of the Authority under this section maywithin twenty-one days from the day ofnotification under subsection (2) lodge an appeal before the Committee.

Reocalio efa

• 32.(l) The Authority may revoke a licence issued
• under this Act-
• (a)where the holder is in breach ofany ofthe provisions of this Act:
• (b) whereitdiscoversthatalicenseemadea
• which heknew tobe false or untrue;
• (c)where the gambling business is wound up or dissolved,or
• (d)if the licensee is in breach of any condition
• attached to thelicence.
• (2)Where the Authority intends to revokea licence under subsection (1),the Authonty shall serve the licensee with the notice of the intended revocation specifying the

Refusal to grant or renew alicenec.

lieence.

• grounds for such revocation and require the licensee to within fourteen days of service of the notice,give reasons why thelicenceshould notberevoked
• (3)A notice under subsection (2)shall be served not less than twenty-one days before the date of the intended
• revocationand shall specifythe grounds forsuch revocation.
• (4)Where a licensee fails to give reasons within the
• period stated,the licence shall cease to bevalid
• (5)If reasons are furmished by the licensee,the Authority,as the case may be,shall after considening such
• reasons-.
• (a)decide whether or not to revoke the licence,or
• (b)call upon the licensee to appear before it on a specified date to make oral representations in support of any written representations made by the licensee or to answer any questionswhich the Authority,as the case may be,regarding such written representations,thereafter the Authority shall determine whether or not to revoke the licence.
• (6)The revocation of a licence shall not prejudice any liability or obligation incurred under or in relation to the licence prior toitsrevocation.
• (7)The revocation of a licence shall take effect upon
• the expiry of the notice under subsection (3)
• (8)A licensee whose licence has been revoked shall surrender the licence to the Authority and shall not be eligible to hold a licence under this Act for a period not exceeding five years with effect from the effective date of therevocation.
• (9)Aperson aggrievedby the decision of the Authority under this section may appeal to the Committee within twenty-one days with effect from the date upon which such decision was conveyed to a licensee.
• 33.(1)The Authority may suspend a licence issued under this Act if the holder of the licence contravenes the licenseean opportunity to beheard

Susperion of

licence,

• (2)The procedure under section32shall applymmtatis mufandis when the Authority is considering the suspension ofalicence.
• (3)Where the Authority suspends a licence under subsection (l),it shall forthwith inform the public through a notice in the Gazette,and two newspapers ofnationwide circulation or any media ofnational coverage.
• (4)Where alicence ceasestobevalid under subsection (l),the-Authority shall inform the licensee in writing the date upon which the licence was suspended
• (5)The suspension ofa licence shall not prejudice any liability or obligation incurredunder or in relation to the licenceprior to its suspension.
• 34.The duration of every licence issued under this Act shall vary for each gambling and betting activity subject to the provisionsof section 30(3)
• 35.(1) A licensee shall display the licence issued under this Act prominently at a place that is prominently visible tothe public during the period ofvalidity ofthe licence.
• (2)Where the licence allows for the establishment ofa
• branch,a copy of the licence shall be displayed at the branch ata place that is prominently visible to the public during the period ofvalidity of the licence.
• (3)A holder of an online gambling licenses shall display the license issued under this Act in their online platform.
• 36.(l)The holder ofa licence issued under this Act may apply after aperiod offiveyears to transfer a licence or a permit to any person whoiseligible for a licence under this Act upon payment of the prescnibed fees to the
• Authority
• (2)The Authority shall,upon receipt of an application to transfer,carry out an investigation on the suitability of the proposed licensee
• (3)The Authority may require for purposes of
• subsection (2).the submission ofsuch declaration as provided in the Third Schedule or further information as it may deem necessary,including-

Durstionofa lioencr

Display afa lieence.

Transferofa

licence

• (a)awrittenauthorization fromthe applicant permitting the Authority to procure information directly from third parties,
• b) a report from relevant investigative agenciesand the county government,and
• (5) )any other information as the Authority may considerappropriate
• (4)The Authority shall not grant approval for the transfer ofa licence where there is reason to believe that the transfer islikely to result in the grant ofa licence to a person who isnot eligible to hold a licenceunder this Acl
• (5)Areport under subsection (3)may include the particulars ofany conviction recorded against a person to the extent that those particulars are relevant for the purposes of determining whether the proposed licensee is business to which a licencerelates
• 37.(1) The Authority may from time to time and on its own motion or upon receipt ofinfomation from any person,investigate the conduct of a licensee under this Act
• (2)The Authority may direct any person who is investigated pursuant to subsection (l) to take such action as:may benecessarytorectifyanyshortcomings discovered,and may take such other action as may be appropriate where the licensee fails or refuses to comply with directionsissued by the Authority
• 38.The Authority may issue a duplicate licence to a licenseewhose licence is lost,destroyed or mutilated upon application for a duplicate in the prescribed form and payment of the prescribed feesto the Authority
• 39.(l) The Authority shall keep and maintain a register of licences in such form as it may determine and shall record in the register in respect of every licence
• (a)the name,identity and registration number of a
• licensee,
• (b) particulars of the gambling activity to which a
• licence relates;
• (c)the county or counties to which a licence relates,

Invesigation by the Authority

Dupbeate ficence.

Registerof licences

• (d)the date ofexpiry of the licence;
• (e)particulars of any revocation or suspension of the licence,
• particulars of any amendment to a licence,and
• (g) any other pariculars that the Authority may consider necessary.
• (2)The register maintained by the Authority shall be open to thepublic at reasonable times and upon payment of theprescribed fee.
• 40.(1)The Authority shall require a licensee to deposit an insurance security bond or bank guarantee equivalent to cover the amounts provided in the Fourth Schedule.
• (2)The insurance security bond or bank guarantee deposited under this section may be used by the Authority to defray a licensee's liability,which may arise from the
• licensed activity
• (3)The Authority shall prescribe applicable insurance security bond or bank guarantee fora gambling activity not
• provided forunder this Act.
• (4)The insurance security bond or bank guarantee deposited under this section may be used by the Authority to defray a licensee's liability,which may arise from the licensed activity.
• (5)The Cabinet Secretary may by notice in the
• Gazette revise theFourthSchedule
• 41.(1) Each licensee shall provide proof of adequateGaimgpil
• gambling capital to set up the licensed operations.
• (2)The Authority shall,in consultation with the Cabinet Secretary,determine and publish by notice in the Gazette the amount of capital for each gambling activity regulated under this Act.
• 42.(1)The Authority shall prescribe books of Bokstobekept bya licensee. accounts to bekept by a licensee.
• (2)A licensee shall regularly enter or cause to be
• entered particulars ofentries on the books of accounts as prescribed by the Authority

Security for

• 43.(1)A licensee shall submit to the Authority audited by statement of accounts within three months after the end ofa financial year.
• (2)The accounts of a licensee submitted under this Authority
• 44.A licenseeshall ensure that their gambling
• machines-
• (a)are located in premises in which the respective county government has issued a permit;
• (b)aresourcedfrom acertifiedsourcewith
• international certification standards,
• (2) have an import certificate issued by the Authority indicating the model and the functions of the machine,and
• (d)undergo standards verification after every three months.
• 45.(1)There shall be a tax tobeknown asgambling tax chargeable at the rate of fifteen per cent of the gross gambling revenue
• (2)The tax under subsection (l) shall be paid to the Collector on or before the 20th day of the following month

No.18of2012

• (3)The Collector shall pay all the proceeds of taxpaid under subsection (2) into the Sports, Art and Social Development Fund established under the Public Finance Management Act,2012.
• 46.(I)There shall bea monthly levy to beknown as gamblinglevy which shall be paid by a licensee to the Authority

Gambling levy

• (2)The Cabinet Secretary shall in consultation with the Authority,prescribe the amount of the gambling levy payableunder subsection(1).

Provided that the amount prescribed shall not exceed one per cent of the monthly grossgambling revenue ofa

licensee.

• (3)The monies paid under subsection (l) shall be used by the Authority for thepurposesof-

Submissionaf accounts by a hiccnsee.

Coatrolof gasnbing machines.

Gambling tax.

• (a)research on social determinants ofmental health and population impact ofgambling;
• (b) awareness creation to the generalpublic and during advertising on the addictive potential of gambling and association with high rates of mental ill health in the population,
• C establishment of treatment and rehabilitation programs to support management of addictive disorders in public health facilities;and
• (d)eradication ofillegal gambling
• (4)Thelevy collected under this section shall bepaid into an account operated by the Authorityon orbefore the 20th day of the following month.
• 47.(1)Aholder ofagambling licence issued by the Authority under section 27shall apply for apermit from the respective county government fora premise within which the person intends to carry out the licensed gambling
• activity.
• (2)An application for a gambling permit shall be in
• government and shall be accompanied by
• (a)the fee prescribed by the respective county
• government,
• (b)a licence as issued by the Authority, and
• (c)such other information as the applicant may consider necessary toenable thecounty govemment determine the application.
• (2)A county government shall grant a permit upon
• determining the suitability ofthe intendedpremises for which the applicationismade andconsideringthe requirements set outin subsection (1).
• (3)A permit issued under this Act shall not be transferable unless with the authority of the respective county govemment
• 48.A permit issued under this Act shall state the location of the premise to which it relates,and shall be endorsed with all conditions imposed by the Authority and
• respective county govemment

Anplication fora

pemil.

Endorsemead of penmil

• 49.(1)A county government may revoke a permit issuedunder this Act where
• (a)the holder is in breach ofany condition attached to the permit,or
• (b)the Authority has revoked a licence of a permit
• holder.
• (2)Where a county government intends to revoke a permit under subsection (l),the county govermment shall serve the permit holder with the notice of the intended revocation specifying the grounds for such revocation and require theperson to,within fourteen days of service of the notice furnish reasons why the permit should not be revoked.
• (3)Where the person fails-to give reasons within the period specified,the permit shall cease to bevalid
• (4)If the person furnishes reasons, the county
• government,shall after considering such reasons-
• (a)decide whether or not to revoke the permit,or
• (b)call upon the permit holder to appear before it on a specified date to make oral representations in support of any written representations made by the permit holder or to answer any questions whichthecounty government may have, regardingthe writtenrepresentations,and thereafter the county government shall determine whetherornot to revoke the permit
• (5)The revocation ofa permit shall not prejudice any liability or obligation incurred under or in relation to the pemitprior to itsrevocation
• (6)Where a permit is revoked,under subsection (1). the county government shall serve thepermit holder with a notice of revocation ofapermit in theprescribed form
• (7)A notice under subsection (2) shall be served not less than twenty-one days beforethedate of the intended revocation and shall specify the grounds for such
• revocation.
• (8)The revocation of a permit shall take effect after twenty-one days upon expiry of a notice issued under this
• section (7).

Revoction ofa perm.

• (9)The holder ofa permit that is revoked shall surrender the permit to the county govermment and shall not beeligible to hold apermit under this Act for aperiod not exceeding five years with effect from the effective date of the revocation.
• (10)A person aggrieved by the decision of the county governmentunder this section mayappealtothe Committee within twenty-one days from the date ofreceipt of the decision.
• 50.Every permit issued by the county government shall bevalid for a period oftwelve months from thedate ofissue unless a different duration has been prescribed under this Act.
• 51.(1)A holder ofa pemmit issued under this Actmay transfer such permit to any person who may qualify tobe a permit holder under this Act upon approval by the county
• government andupon payment of requisite fee.
• application,to transfer a permit undertake to cary out an investigation with the assistance of the Authority on the suitabilityofaproposedpermit holder.
• (3)The county govermment shall notify the Authority
• in writingofanytransferof apermit.
• (4)A county government shall not approve the
• transfer ofa permitwhere it has reason tobelieve that the transfer is likely toresult in the grant of a permit to a person who is not eligible to hold a licence under thisAct
• 52.A holder of a permit issued under this Act shall,

Dispbay ofn permil.

• during the period ofits validity display the permit within the business or premise at a place that is prominently visible tothepublic

PARTV-CONTROLANDLICENSINGOF LOTTERIES

Autharizatinnafa publie lotlery for charitable purpose.

• 53.(1)The Authority shall issue a licence authorizing the promotion and conduct of a public lottery intended to raise funds for charitable purposes which may include charitable activities for-
• (a)social service;

Duration of

panmi

Tramsferofa pernil

• (b)publicwelfare.
• (c)relief of distress,
• (d)recreational purposes,
• (e)sporting purposes;
• (f)any other purpose that may be assigned to it by the
• Authority.
• (2)The authorizationby the Authority under activitiesareundertaken
• subsection (l)shall be for public lotteries where the promotion andlottery countrywide,across more than one county or through media.
• (3)Thecounty governments may licence the promotion and conduct of a public lotteryintended to raise funds for the charitable activities set out in subsection (l) where thepromotion and the lottery activities are confined within the respective counties
• (4)The license issued under sub-section (3)above shall be forapeniod not exceeding oneyear
• (5)The Cabinet Secretary shall in consultation with the Authority,set the percentage of the gross revenue of a the lottery was promoted
• (6)Despite section 29(3),the percentage set by the Cabinet Secretary under subsection (5),shall not be less than thirty per cent of the gross revenue of the public lottery.but in no case shall the Authonity require a proportion greater than forty-five per cent of the gross proceeds.
• (7)The Authority shall grant a licence for the
• promotion of a lottery under this section only to a body corporate,
• (8)A promoter of a lottery authorizedunder this sectionwho devotesproceeds ofthelottery to activitiesnot permitted or to a purpose other than expenses and prizes permitted commits an offence and shall be liable upon conviction to a fine not exceeding twenty million shillings or to imprisonment for a term not exceeding twenty years
• or toboth.

• 54.(1) The Authority or county government shall, in
• respect of any public lottery impose such conditions asit may deem necessary to ensure that-a lottery is promoted and conducted efficiently for the purpose for which it is beingpromoted.
• (2)In conducting a lottery under subsection (1).a promoter-
• (a)may deduct operating expenses not exceeding twentyper cent ofgrossproceeds of thelottery:
• (b)shall take reasonable measures to ensure that a
• purchaser of a ticket or a chance in a lottery is protected against fraud;
• c)shall guarantee the expected proceeds of the
• lottery or any part thereof
• (d)shall ensure proper and equitable distribution of
• the charitable funds of the lottery;
• (e)shall take reasonable measures to ensure that a purchaser of a ticket or a chance in a lottery is protected against fraud,and
• shall take such steps as it may deem necessary to ensure that any conditions imposed bythe Authority are complied with
• (3)In this section,the term"gross proceeds"means the total proceeds received from a lottery prior to any deductions.

Authorization ofa lotleryrelaling to horse racing.

• 55.(l)A county government may issue a licence authorizing promotion ofa lottery relating to a horse race. promoted within or outsideKenya.
• (2)The Authority may,in respect ofa lottery to be promoted and conducted in Kenya under this section,
• issue-
• (a)an on-the-coursepermit authorizingthe promotion and conductofalottery on a course specified:or
• (b)a licence authorizing the promotion and conduct ofa lottery off the course.
• 56.(1)A lottery may be promoted and conducted on
• behalfofa society established for-

Power efthe Authortyor coanty govemnent with lottery,

Lollary conducted for charitable, sporing orother.

• (a)charitable purposes
• (b) participation in a sport,support of athletics,or cultural activities,or
• (c) purposes for raising money to be applied for purposes of public good and are not for private gain or purposes of commercial undertaking
• (2)The Authority may.upon the issuance of a licence under this section impose such conditions to the manner in which a person issued with a licence may conduct the promotion and conduct of a lottery under this section, including-
• (a) requiring a promoter to be a member ofa society
• (b)prohibiting the payment ofremuneration toa businessoremployedinthe promoter's organization in connection with the lottery;
• capping the prize ofa ticket to twenty thousand shillings,
• (d) )aticket or chance shall be sold for a price of at least twenty shillings,
• (e) requiring the application of the whole proceeds upon deduction of sums lawfully appropriated on account ofexpenses orfor theprovision ofprizes, topurposes ofthe society,as.describedin subsection (1);
• requiningthe amount ofproceeds appropriated on account ofexpenses not to exceed fifteenper cent ofthewholeproceeds,
• (g) capping the amount of the proceeds appropriated for the provision ofprizesnot to exceed one half ofthe whole proceeds,
• (h)requining the price of each ticket or a chance to be the same on all thetickets;
• D requiring every ticket,noticeof a lottery lawfully exhibited,distributed or published to specify the name of the society sponsoring the lottery,the name and address of the promoter and the date on

purpases.

• which the draw,determination or event to which the prize winners are ascertained is expected to take place,
• prohibiting the delivery of a ticket through post to
• a person who is not a member of the society:
• (k) prohibitingthe admittance ofapersonto participate in a lottery except upon payment to the promoter ofthe whole price ofthe ticket or chance,
• 1 prohibitinga promoter from receiving money for or on account of a ticket or chance,and
• (m)requiring payment for expenses or prizes out of proceedsofthelottery.
• (3)A person,includinga promoter of a lottery who contravenes any of the conditions set out in subsection (2) commitsan offence and shall be liable upon conviction to a fine not exceeding one million shillings or to imprisonment for a term not exceeding one year or toboth.
• 57.(1)The Authority may,issue a licence for a lottery promoted and conducted as an incident ofentertainment countrywide,across more than one county or through the media.
• (2)A county government may,issue a licence for a entertainment confined within therespective county.
• (3)The Authority or a county government may,upon the issuance of a licence under this section impose such conditions on the manner in which a person issued with a licence may conduct the lottery,including
• (a)requiring that the ticket or chance is sold or issued in a premise which the lottery may take place,
• (b) requiring that the result of the lottery is declared
• on the premises in which the lottery took place;
• (C) requiring thatthefacility providedfor participating ina lotteryorthe gambling
• entertainment is not held for private gain;

Lottery ineidental

to enlertanment.

• (d) requining that a prize in a lottery is in the custody and disposal ofapromoterofalottery:
• (e) requiring that a ticket or chance in a lottery is issued or allotted upon the receipt of the full price,
• directing that the price of a ticket or chance shall be displayed on each ticket;
• (g) prohibiting money prize in a lottery,and
• (b) capping the price ofa ticket or a chance to not more than fifty shillings.
• (4)This section shall apply toentertainments
• including bazaars,sales of work,fetes,dinners,dances, sporting orathletic events limited toone ormore days.
• (5)A person who contravenes any of the conditions set out in subsection (2)commits an offence and,shall upon conviction,be liable to a fine not exceeding one million shillings or to imprisonment for a term not exceeding one year,or to both
• 58.(1) The Authority may issue a licence authorizing aperson to organize and manage a lottery incidental to a
• sport orgame.
• (2)A licence shall state the lottery incidental to the game or sport which a licensee may organize and manage.
• (3)The Authority may,inrespect of a licence issued
• under this section,impose conditions on-
• (a)the manner in which a person may conduct a sport orgame lottery,
• (b)the hours during which the premises may be open,
• (c) the suitability.condition and conduct ofthe premises,
• (d)the protection of persons taking part in the
• gamble against fraud;
• (e) measures to ensureresponsible gambling:and
• payment of admission fees for persons gambling in the premises.

Licensing loneries incidental to sporti or games.

• (4)Wherean admission fee ischargedunder subsection (3)(f) it shall be subject to the payment of taxCa479 under the Entertainment Tax Act.

Private Lotlery.

• 59.(1) The Authority may,issue a licence for a private lottery
• (2)The Authority may,upon the issuance ofa licence under this section impose such conditions to be met by a
• person issued with a licence,including
• (a) requiring the net proceeds or part thereof of lottery tobe devoted to theprovisionofprizes for purchasers of tickets or chances,or,in the case of a lottery promoted forthemembers of the society shall be devoted to thepurposes ofthe society.
• (b) requiring a notice or advertisement ofa lottery.to be exhibited on a premise or the club ofthe memberswhom thelotteryispromotedor otherwise,
• C requiring the price ofeach ticket or a chance to be the same on all the ticketsor otherwise,
• (d) requiring each ticket to bear thename and address ofa promoter of the lottery and a statement ofa person to whom the saleof the tickets or chances isrestricted;
• (e) requiring a ticket or a chance to be issued or receipt of a full price;
• prohibiting the return of money or anything of
• value received byapromoter,or
• prohibiting delivery of a ticket in a lottery
• g through thepost office.
• (3)Apersonorapromoterofalotterywho contravenes the conditionsspecified in subsection(2) commits an offence and shall,upon conviction,be liable to afinenot exceeding one millionshillingsor to impnisonment for a termnotexceedingoneyearor to both
• 60.Apromoter and a beneficiary ofalottery promoted or conducted under this Act shall be required to submit audited accounts and make returns in such form and within such periodastheAuthorityor respective county government may specify

Submisslon of asdited nccounts and relums.in lottery.

PARTVICONTROLANDLICENSINGOF

BETTING

• 61.The Authority may.in respect of bookmaking.
• issue
• (a)an on-the-course licenceauthorizinga person to carry out the business of a bookmaker at any authorized race meeting.
• (b)an off-the-course licence authorizing a person to carry on the business of a bookmaker at any authorized bettingpremises:
• (c)alicence authorizing a person to carry on the businessasa bookmaker ofboth on and off the courserace,or
• (d)an online bookmakers licence
• 62.(l) The Authority may issue any of the following
• licences for each totalisator-
• (a)an on-the-course licence authorizing a person to operate a totalisator on specifieda course;
• (b)an off-the-course licence authorizing a person to operate atotalisator ata specifiedbetting premise,or
• (c)alicenceauthorizing a persontooperatea
• totalisatorboth on and off thecourse.
• (2)A licence under this section may be issued in respect of each race day or for a period not exceeding one
• year.
• (3)Every transaction effected by means of a totalisator shall be recorded in such manner as may be prescribed by the Authority to ensure that as far as is practicable,the record is in an uninterrupted view of thepublic
• in which a race meeting is held
• 63.(1) The Cabinet Secretary may,in consultation with Authority.make rules for the operation of totalisators.
• (2)A holder of a totalisator licence shall conduct a totalisator or a betting pool in accordance with totalisator rulesissued by the Authority

Bookmaket's liomoe

TotalisMor lieence.

Lavingof totalsatot.beting poolsand odds

• (3)The aggregate of returns by a holder of a totalisator licence or a person who has made a winning bet on any event,or combination of events,shall not be less than eighty-five per cent of the total amount pooled or such other amountas may be approved by the Authority,in respect of an event or combination of events.
• (4)A person who participates in a totalisator's bet
• shall not-
• (a)bet upon the result of a horse race or any other race,
• (b) sell or offer for sale,or purchase from a person a ticket or card entitling a purchaser or a holder thereof to an interest in theresult of the working ofa totalisatoron a horse race or any other race,
• (c) make a contract or bargain of any kind to pay or toreceivemoneyupon an event determined or to be determined by the result of the working ofa totalisator on a horse race or any other race,
• d receive or permit receipt of a betting transaction inrespect ofa totalisator in respecl ofa horse race or any other race after the start of the race,
• (e) register on a totalisator after the start of a horse race or any other race any money received in respectof therace,or
• take into account in the calculation or payment of abetting transaction which has not been
• registeredon a totalisator
• (5)The provisions ofsubsection (4))(a) and (b)shall not apply to an employee engaged in the lawful operation ofa totalisator in amanner approved by theAuthority.
• (6)A person who contravenes the provisions ofthis section commits an offence and shall be liable upon conviction to a fine not exceeding one million shillings or to imprisonment for a term not exceeding one year or to
• both.
• 64.(1) The Authority shall issue a promoter'slicence in respect to a pool beting scheme authorizinga promoter toprovide apool betting scheme within Kenya

hounoemrespeet Sqoodr

Promoter's schens

• (2)A licence issued under this section shall apply to
• onepool betting scheme at a time.
• 65.(1) A promoter of a race meeting who intends to permita bookmaker to carry out bookmaking ata race meeting shall upon payment of theprescribed fees,apply to the Authority for the relevant licence in the prescribed form.
• (2)The Authority may upon receipt of an application
• bookmaking to take place ataracemeeting heldon a racecourse on the day specified in the licence.
• (3)A licence issued under this section shall specify themumber of race meetings that may be held on a licensed racecourse within a year.
• (4)In this section,"racecoursemeans an approved ground used or intended for use for the purpose of horse racing or a related race.
• 66.(l)A licensee shall ensure that their betting machines-
• (e)are located in a casino only.
• aresourcedfromacertifiedsourcewith international certification standards;
• (g) have an import certificate issued by the Authority indicating the model and the functions of the machine,and
• (h)undergo standards verification after every three months.
• (2)Aperson shall not operate a betting machine unless theperson hasbeen issued with a valid bookmaker's
• licence.
• (3)A single bet in a gambling machine shall be a minimum oftwenty shillingsonly

PARTVII-CASINO,SLOTMACHINEAND OTHERFORMSOFGAMBLING

• 67.(1) Aperson may be granted a licence to operate a
• casino and other forms of gambling upon meeting the requirements set out in section 28.

Aushorizalkon ofa

bookmakingata race meeling

Controt of beting machines

Cmiaos and otber formnsof gamblieg

• (2)The Cabinet Secretary may in consultation with the Authority and the Council of Governors,make regulations prescribing the number of casinos,amusement machines slot machines and other forms ofgambling that may be operated within the counties.
• 3)The Cabinet Secretary shall consider the following in making the regulations under subsection(2)-
• (a)the number andgeographic distributionof
• existing licensed casinos,slotmachines and other forms of gambling at the time;
• (b) the presence of tourists in a county:
• (c) the cultural and religious distribution of the
• residents ofeach county:
• (d) theincidenceandsocialconsequencesof compulsiveand addictive gambling:
• (e)thepromotion of-
• (i)job creation within the gambling industry;
• (ii)diversity of ownership within the gambling
• industry.
• (ii)efficiency of operation in the gambling
• industry:and
• (iv) competition within the gambling industry
• (4)Agamblingoperatorshall place gambling machines including slot machines in a permitted premise which shall not be near-
• (a)learning instinutions;
• (b)religious establishment:and
• (c)residential areas.
• (5)A single bet in a casino machine shall be played
• for a minimum of twenty shillings.
• 68.A licensee shall,in respect of each premise where acasino is operated allow the Authority or any person
• designated by the authority-in writing to
• (a)enter any licensed premise or facility belonging toorunderthe controlof the licenseefor purposes of inspection,

Powers ofthe Authorityto inspecl.

• (b)examine or inspect any machine,document or
• data in a licensed premises or facility,and make copies or extracts from it;
• C seize,for the.purpose of examination,any information,machine,document or data,on the
• conduct of a casino,
• (d) sealor otherwise secure any such premise, facility,machine,document or data in the casino where an offence has been committed
• (e) securea validandenforceablewritten undertaking from a person controlling a licensee inany way not to change,transfer,cedethe control ofa licence or in any way encumber the licence to another person without the consent of the Authority,and
• take such steps as may be reasonablynecessary to protect all gambling players,
• 69.The Authonity shall ensure thatits officers are present in all casinos for purposes of ensuring compliance with the Act and the conditions imposed by the Authority under the relevant licence.

PARTVIII-ONLINEGAMBLING

• 70.(1)A person who desires to operate,sellor promote online gambling in Kenya,shall apply,in the prescribed form,for a licence from the Authority for the following-
• (a)an online bookmakers licence;
• (b)an online lottery licence,or
• (c)an online casino licence
• (2)A person making an application for an online gamblinglicence under subsection (l)shall submit to the Authority a proposed gambling control system,which shall be duly considered by the Authority with or without
• vaniation.
• (3)In granting a licence under this section,the Authority shall require an applicant to deposit with the Authority such security as prescribed under Act

Offoer ofthe Auhority to be

presen

Licensingof

• 71.(l)A person licensed to carry out an online gambling activity shall conduct the activity under a gambling control system approved by the Authority
• (2)The Authority shall not approve a system under subsection (l)unless the licensee provides for-
• (a)online security of information,
• (b) safety and security against criminal activities,
• (c)
• online payment ecosystem;
• (p) protection measures against under age gambling.
• (e) gambling:
• awareness and education;
• (g) responsible advertising.and
• (h) dataprotection measures under the Data Protection Act,2019
• (3)The Authority shall impose the requirement of an approved gambling control system as a condition of the licence granted under subsection (l) which the licensee shall berequired to strictly complywith
• (4)The failure by the licensee to comply with the requirements of theapproved gambling control system may lead to revocation of the licence andoffence.
• (5)The Authority shall establish a framework to facilitate realtime monitoring of casinos and online gamblingactivities,whichshallbe accessiblefor monitoring by the Communications Authority of Kenya and any otherrelevant government agency
• (6)In order to facilitate the real time monitoring of gambling.an operator shall be required to provide the Authority with-
• (a)the platforms for participation which may where itsapplicableinclude
• ()all visual and audio communication channels, OT
• (ii)an online website platform;

Controlofonline gambling

No.24of2019.

• (b)particulars of the charges to be levied by an
• operator,
• (c) particulars and the location of servers of the operator'ssystem to show howaplayer may be registered and deregistered on the system;
• (d)particulars and the location of all other servers;
• (e)a valid telecommunication licence,and
• (f)any other information required by the Authority
• (7)In the case ofmobile online gambling.lottery or a betting licence,particulars of network connectivity with two links to mobile operators shall be provided to the Authority.
• (8)An operator shall maintain a customer care centre within Kenya to monitor and respond to issues raised by consumers.
• 72.An online gambling transaction commences when
• a player's account is debited with an amount ofa bet and concludes when a player's account iscreditedwithan amount ofwinnings in the case of a winning bet orwhen a playerloses-thegame.
• 73.(l) Where a player in an online gambling transaction wins a monetary prize,a licensee shall within two days credit the amount to theplayer's account.
• (2)Where a player wins a non-monetary prize,the licensee shall-
• (a)deliver the prize to the player within seven days, or
• (b) notify the player in writing of an address within Kenya where the prizemay be collected
• (3)Ifa non-monetary prize is not collected within a period of six months after the winner has beennotified of the place where the prize may be collected,a licensee may disposeof the prize by public auction,or in a manner approvedby the Authority
• (4)The proceeds of sale under subsection (3)may be used to pay for the cost of disposal of the prize,and any remainder be deposited in the Fund

Online gambling

transaetion.

sozudo ue

and renillnce of winnimg-

• (5)Any claim against a licensee for uncollected prize shall lapse after six months from the date of declaration of the winnings.
• (6)An operator shall require proof of age ofmajority prior to the remittance of the prize to the registeredplayer.
• 74.(1) A player in an online gambling activity shall not bet an amount of less than twenty shillings in a competition.
• (2)The minimum amount set under subsection (1) shall be inclusive of such saving component for the player as shall be determined by the Authority in consultation with
• the Cabinet Secretary.
• (3)An operator who pemits a person to engage in an online gambling activity for an amount less than the amount prescribed under subsection (l) commits an offence and shall beliable upon conviction toa fine of notless than five million shillings or to imprisonment for a term not exceeding five years.
• 75.(1)A licensee shall not allow any person to participate as a player in an authorizedgame conducted by a licensee unless the person is registered as a player and holdsan account with the licensee.
• ensure that a child is not registered foran online game, lottery orbet forwhich they arelicensed to operate
• (3)An operator shall require proof of age ofmajority prior to theregistration of every player.
• (4)The Authority may make regulations for the prevention of the registration ofa child from an online
• game,lottery orbet.
• (5)Where a licensee becomes aware that a person has provided false information during registration,the licensee shall not register such person and where such a person has alreadybeen registered,the licensee shall immediately cancel the person's registration
• (6)A licensee shall avail the following to aplayer
• (a)all the niles relating to authorized games
• conducted byalicensee,and

Maimim wnount peron can bet onllne

Registnation ofa playet.

• (b)the particulars ofany processing fee which may be incurred by the player.
• (7)A licensee shall not induce, facilitate or aida player to place a wager ora betby advancing credits,the use of credit cards or meeting third party costs incurred by aplayer.
• 76.(l)A licensee shall establish and maintain a player's account for each player who is registered by the licensee.
• (2)A licensee shall credit to an account established
• under subsection (l)in respect ofa registered player all funds
• (a)received by a licensee from or on behalf ofa
• player,or
• (b)owed bya licensee to the player
• (3)A licensee shall not accept a wager from a player unless-
• (a)there are adequate funds in the player's account
• to cover the amount of the wager,and
• (b)the funds necessary to cover the amount of the
• wager are approved by the player.
• (4)A licensee may receive funds from a player
• through
• (a)a debit card;
• (b)an electronic funds transfer;
• (c)mobile money transfer.or
• (d)any other method as may be approved by the Authority from time to time.
• 77.(1)A licensee shall not
• (a)provide credit to a player or on a player'saccount or act as an agent for a credit provider to facilitate the provision ofcredit to aplayer,
• (b)make an offer designed to induce persons to participate or increase their participationin licensed activities:

Player's accoumt to bekept.

Resariction on eredit and isducements.

• inarangements for inducing
• (c)participate permitting or assistingpersons togamble
• (2)Aperson who breaches theprovisions of subsection (l)commits an offenceand isliable,on conviction,to a fine not exceeding five million shillings or imprisonment for a term not exceeding five years.
• (3)Nothing in this clause shall be constnued as limiting an operator from offering free bets and bonus bets in the ordinary cause of business
• 78.A licensee shall not deal with any amount standing to the credit ofaplayer's account except
• (a)to debit to the account a wager made bya player or an amount as directed by a player for purposes ofawager,
• (b)to remit funds standing to the credit of an account ofaplayer at theplayer'srequest,or
• (c)to pay bank charges for deposits received and funds withdrawn.
• 79.(1)A licensee shall deposit all the player's money ina player's account to be held and operated in a bank approved by the Authority
• (2)Any money in a players account,including money in transit or in the process of being cleared shall at any time be at least equal to the aggregate amount standing to the credit ofplayers'accountsheld byalicensee:

Provided that where funds standing to the credit ofa player's account falls below the aggregate total of the amount standing to the credit of a players'accounts,the licensee shall make good the shorifall from the licensee's own money within a period ofthirty days from the end of the month in which the shortfall occurs.

• (3)A licensee's bank account holding a player's moneyshall-
• (a)not enforce or execute,any charge,write-off,setofforother claim against a client's account,
• (b)not combine the account with any other account in respect ofany debt owed toit by a licensee,or

Restniction on dealing wtaa player'smoney

Payer'r acconl

• (c) credit any interest payable on a client's account, only to the account.
• 80.(l)Where a transaction hasnot been recorded on a player's account for threemonths,a licensee shall remit the balancein the account toaplayer
• (2)Where a player may not be satisfactorily located themoney may be remitted to the Fund:
• (3)Provided that,no claim shall lie against a licensee who has remitted money in a player's account under this section to the Fund
• 81.A licensee shall at the end of each financial year submitaudited financialreports totheAuthority indicating-
• (a)its gross revenue for the financial year,
• (b)its net revenue for the financial year,
• (c)the amount remitted to the collector of taxes for
• the financialyear,
• (d)the good causes they implemented as part ofthe
• license conditions.
• 82.(l)Agambling operator based in a foreign country shall only beissued with an online gambling licence where. the operator-
• (a)isregistered in Kenya,
• (b)has a physical address registered inKenya,
• (c)intends to carry on the online gambling business
• inKenya;and
• (d)meetsanyother requirementsasmay be
• prescribed.
• (2)In addition to the requirements under subsection (1).a gambling operator based in a foreign country shall be required to provide its audited books of accoumts for the immediately precedingyear.
• (3)A foreign based gambling operator who provides online gambling services in Kenya without a licence commits an offence and,shallupon conviction-
• (a)in the case of a natural person,be liable to a fine not exceeding two million shillings or to

Inactive accounl

Finneinl reponing bya lieemsee.

Restriction on foreign operanon.

• imprisonment for a term not exccedingtwo years, or to both;or
• (b)in the case ofa corporate person be liable to a fine not exceeding fifty million shillings.
• 83.A party to a dispute anisingout of an online gambling activity,may appeal to the Committee for resolution of the dispute within fourteen days from the date ofthe dispute.

Dispute resobutinn.

PARTIX-AMUSEMENTSWITHPRIZES,PRIZE COMPETITIONS.CHAINLETTERSAND GAMBLINGMACHINES

Provision of aennts with prize at nonconmercad cnlertimments

• 84.(l)A person may provide amusement with prize at non-commercial entertainment where the whole proceeds ofthe entertainment after deducting the expenses of the entertainment are devoted to purposes other than private
• gain.
• (2)The opportunity to win a prize at an amusement to which this section applies shall not be the only inducement to aperson to attend the entertainment.
• (3)A person who breaches the conditions specified in conviction be liable to a fine not exceeding one million shillings or to imprisonment for a term not exceeding one year or to both.
• 85.(1)A person may,subject to subsections (2) and (3).provide for amusement with a prize
• (a) on apremise which a permit for the provision of an amusement has been granted by a county govermment under therelevant law,and
• (b)at a pleasure fair consisting wholly or mainly of an amusement provided by travelling showmen held on any day ofthe year on the premises not previouslyused in thatyearon more thantwentyseven daysfor theholdingofapleasure fair.
• (2)The following conditions shall be observed in connection with amusements under this section-

Provision of amusements with prizeata comrnercial eelertamnent

• (a)the amount paid by a person for any one chance towin a prize shall not exceed five thousand
• shillings;
• (b)the aggregate amount issued by way of sale of a chance in a determination of a winner of a prize
• shall not exceed five million shillings;
• (c)the sale ofa chance and a declaration ofa result shall takeplace on the same day and on the same premise on which the amusement took place;
• (d) money prize for distribution shall not exceed one million shillings:
• the winning or the purchase ofa chance to win a prize shall not entitle a person to any further amusement with prize orin any gamble or lottery;
• e) and
• (f)in the case of a pleasure fair under subsection (1(b). the opportunity to win a prize at an amusement to which this subsection applies shall not be the only inducement to a person to attend the fair.
• (3) Where an amusement with a prize takes the form ofa game played byuse ofa machineplayed by insertion ofa coin or a token into a machine,the following conditions shallapply-
• (a)a successful player may receive
• amoney prize not exceeding one million shillings:
• (i)a prize other than money ofa value not exceeding five million shillings,or
• (ii)a token of a nominal value exchangeable for a prize other than money on the basis ofa prize of a value or aggregate value not exceeding five million shillings or fora numberof tokensequaltoamaximum number of tokens which may be won by any one playing of the game,and
• (b)a player's success at the game shall not entitle a person to exchange any prize or token fora

benefit other than those provided for under paragraph (a).

• (4)Aperson who breaches the conditions specified in this section commits an offence and shall upon conviction be liable to a fine not exceeding one million shillings or to imprisonment fora term not exceedingoneyear or toboth.
• 86.(l)A county govermment may issue an amusement machine licence authorizing the use of an amusement machine in a licensed premise
• (2)Aperson who-
• (a) uses or permits the use of an amusement machine in respect of which a licencehasnot been issued under subsection (l),or
• (b) contravenes orallows the contravention of any condition provided for or imposed by the county govermment,commits an offence and shall be
• liableonconviction-
• (i)in the case ofan offence under paragraph (a).to a fine not exceeding one million shillings or to imprisonment for a term not exceeding one year or toboth,and
• (ii)in the case of an offence under paragraph (b), toa fine not exceeding one million shillings or to imprisonment for a termnotexceeding oneyear or to both
• (3)In this section,"amusement machinemeans a
• machine.other than a gambling machine
• (a)which is operated by the insertion of a coin or
• coins or other equivalent into the machine;
• (b) whereby a successful player neither receives nor is offered any benefit other than-
• opportunity afforded by the automatic action ofthe machine to play the game again
• without insertion of a coin,or
• (ii) the delivery by the machine of a coin or coins ofa value not exceeding that required in order toplay thegame once.

Amusomeal

muachines.

• 87.(l)The Authority may,issue a licence authorizing the promotion and conduct ofprize competitions cutting across several counties.
• (2)Acounty government may,issue a licence authorizing the promotion and conductofprize competitions confined to a county.
• (3)A person who promotes or advertises any prize licence issued under this section shall be subject to such conditions as may beimposed by the Authority and county govemments,and in every case,to the condition that no person under the age of eighteen years shallplay an amusement machine unless in the presence of,and with the permission of the parent or guardian.
• license issued under this section shall be subject to such conditions as the Authority may impose and in every case to the condition that no person under the age of eighteen years shall play an amusement machine unless in the presence of,and with the permission of the parent or guardian.
• 88.(l) The Authority shall issue a licence authorizing mediapromotions with pnizes.
• (2)A person who undertakesmedia promotion,in either electronic or print media with prizes licenced under this section shall be subject to such conditions as may be imposed by the Authority
• (3)Media promoters are responsible for all aspects promotions equitably,promptly and efficiently and be seen todeal fairly andhonourably with participants andpotential participants.
• (4)Allmarketing communications or other material referring tomedia promotions for prizesmust communicate allapplicable significant conditions or information where the omission of such conditions or information is likely to mislead,conditions or information shall include:
• (a)How to participate,including conditions and costs skillsrequiredof participantsto participate, eligibility to participate and the prevention of

Authorization of prize compctiions.

Authoriationof medin pronsotions willt prizes.

• children participation,and other factors likely to influence consumer's decision to participate in a promotion;
• (b)Any free or fee-based entry route should be explained clearly and prominently:
• (c)The start date.and a closing date,for purchases or submissions of entries.Promotions must have a clear running period ofoperation
• (5)Such promotions must specify the number and nature of prizes or gifts,and the total prize available for winning intherespective prize competitions and promotional campaigns.
• (6)Promoters must distinguish those prizes that could be won,including estimated prize funds,from those prizes thatwill bewon by someone by the end of the promotional period and state whether prizes are to be awarded in instalments or are to be shared amongrecipients
• (7)Promoters must not claim that consumers have won a prize if they have not. The distinction between prizes and gifts,or equivalent benefits,must always be clear.
• (8)Promoters must not exaggerate consumers'chances ofwinning pnizes.They must not include a consumer who hasbeen awarded a gift inalist of prize winners.
• (9)Promoters of prize draws must ensure that prizes are awarded in accordance with the laws of chance and. produces verifiably random results.by an independent person,or under the supervision of an independent person.
• winnings at once or must know immediately.what they have won and how to claim without delay,cost or administrative barmiers.Instant-win tickets,tokens.or numbers must be awarded on a fair and random basis and verification must take the form of an independently audited statement that all prizes have been distributed,or made available for distribution,in that manner.
• (11)Promoters must either publish or make available information that indicates that avalid award took place

• (12)Promoters must publish or make available the information to winning entrants and give them the opportunity to object to their information being published or made available,or to reduce the amount ofinformation published or made available.Promoters must nevertheless still provide the information and winning entry to the Authority and similarly transmit the same to the Kenya Revenue Authority
• 89.A person who sends or causes to be sentor Chainlaten
• chain letter,commits an offence and shall be liable upon conviction to a fine not excceding one million shillings or to impnisonment for a term not exceeding oneyear or to both.

PARTX-ADVERTISEMENTOFGAMBLING

ACTIVITIES

• 90.(1) A person shall not,without the approval of the
• Authority.promote the advertisement of a gambling activityonelectronicmediumor any other formof communication by-
• (a)holding himself out by advertisement,promotion, notice or public placard with the aim ofenticing
• members of the public to participate in gambling;
• (b)displaying any written or printed placardor notice relating to any form ofgame of chance in any shape or form so as to be visible in a public street orplace,
• printing or publishing.or causing to be printed or published,any advertisement or notice;
• (d) usinga prominent personality or celebrity.public vehicleor lifestyleadvertisingtopromote gambling,
• using false.misleading or deceptive message likely tocreate an erroneous positive impression
• ofgambling:
• usinga testimonial or endorsement displayed or communicated,that is misleading or incapable of informing the public of the hazards of gambling. or

• (g)advertising gambling by organizing.promoting or sponsoringasporting event,trade fairs. exhibitions,shows,cultural,artistic,recreational educational orentertainment programmes or any other event.
• (3)Agambling advertisement shall-
• (a)indicate the addictive nature of gambling.
• (b)notify players to play responsibly,
• (c)prohibit children from playing.
• (d) not feature aformerwinnerwithaview to encouraging the general public to bet,play or participate,
• e not be featured or broadcasted on television or radio between six oclock in themorming and ten o'clockinthe evening unless during a live sportingevent,
• not be erected on an advertisement billboard of close proximity to a school or a place frequented by children:and
• dedicate ten per cent ofaired advertisement
• (g) towardspromotion ofresponsiblegambling
• (4)All media companies holding licenses on gambling shall notuse any of their licenses on gamblingand shall not promote their gamblingproduct oractivities.
• (5)The Cabinet Secretary may,in consultation with the Authority,make regulations providing for-
• (a)the-circumstances under which the national lottery,and licensed gambling activities may be advertised,
• (b) information that isto appear in an advertisement,
• (C) the places where,circumstances or manner in which signsrelating to a national lottery.lottery or sportspool may be displayed.
• (d) conditions requiring advertisements about the
• gamblingservice authorisedby the licence imcluding--

• (i)publication only to certain classes of persons.
• (i)the content which may require specified words tobe included in the advertisement.
• contentnottobe includedinan advertisement;
• (iv)content not to be published in certain types of publications or media,and
• (v)requirement for content to be approved by the
• Authority
• (6)A person who contravenes the provisions of this
• section commits an offence and shall be liable upon conviction to a fine not exceeding twenty million shillings or to imprisonment for a term not exceeding twenty years, ortoboth.

PARTXI-THEGAMBLINGAPPEALS COMMITTEE

• 91.(l) There is established a committee to be known asthe Gambling Appeals Committee.
• (2)The Committee shall consist of-
• (a)a Chairperson;and
• (b)not less than ten but not more than twelve other members,of whom not less than four and not more than seven shall be Advocates of the High Court of Kenya.
• (3)The Chairperson and members of the Committee shall be appointed by the Cabinet Secretary by notice in the
• Gazetfe.
• (4)Subject to sub section (2)(b).a person shall be
• eligible for appointment asthe Chairperson oramember of the Committee if that person
• (a)in case of the Chairperson,is qualified to be
• appointed as aJudge of the High Court.and
• (b)in case ofa member-
• (i)meets the requirement of Chapter Six of the Constitution;
• (i)has a relevant degree from an institution
• recognized inKenya,

The Gamhling Appeals Conimittee.

• (ii) has at least ten years'experience in a relevant sector,
• (iv)isnot a public officer,
• (v)has not at any time within the preceding five years been an employee ofthe Gambling Regulatory Authority or theNational Lottery Board,
• (vi)has not been convicted of an offence under
• anylaw,
• (vi) has not been adjudged bankrupt by a court
• of competent jurisdiction;and
• (vii)has notinthe lasttwelvemonths immediately preceding the appointment,had personaldirectorindirectcommercial interest in the sector regulated under this Act.
• (5)The Chairperson or a member of the Committee
• shall hold office
• (a)in case of the Chairperson,for a term not exceeding three years and shall not be eligible for re-appointment,and
• (b) in case ofa member,for a tenm not exceeding three yearsbut shallbe eligiblefor reappointment for one further term of three years who shall serve on apart time basis
• (6)A person appointed under this Act shall cease to
• hold officeifthatperson
• (a)resigns from office by notice in writing addressed to Cabinet Secretary:
• (b)becomes a public servant or an employee of the
• Gambling Regulatory Authority or the National Lottery;
• (c)is absent from three consecutive meetings of the Committeewithoutthepermissionofthe Chairperson;
• (d)is adjudged bankrupt by a Court of competent
• jurisdiction:

• (e)is convicted ofa criminal offence,
• (f)isunable to perform the functions of the office by
• reason ofinfirmity of body ormind;or
• (g)is otherwise unable or unfit to discharge the
• functions of the office.
• (7)A person appointed as the Chairperson or a
• member of the Committee shall,before assuming office take or subscribe to the oath or affirmation beforethe Chief Registrar of theJudiciary
• (8)The functions of the Committee shall be to hear and determine appeals-
• (a)against the decision of the Authority or,the National LotteryBoard,
• (b) regarding complaints arising out of the outcome ofagamblingtransaction;
• C) regarding complaints arisingoutofthe functionality o gambling machines and equipment,and
• (d)regarding any other mafter as may be prescribed
• underthisActor referred toitby theBoard
• (9)An appeal to the Committee shallnot operate asan automatic stay of the decision appealed against.
• (10) Save as expressly provided by this Actthe Committee shall regulateits own procedure.
• (11) The Cabinet Secretary shall provide secretariat
• services to the Committee and assign or appoint such the Committee to effectively perform itsfunctions.
• (12)The Committee shall operate as a quasi-judicial body-
• 92.The Chairperson and the members of the
• Committee shall be paid such remuneration and allowance as may be determinedby the Cabinet Secretaryin consultation with therelevant Government agenciesand the advice ofthe Salaries and Remuneration Commission.
• 93.Aperson aggrieved bya decision of the Committee,may appeal to the High Court within fourteen
• days from the date of the decision of the Committee.

Remunerstion of members of the

Conmittee

Appcals from decisinns ofthe

Commillee

• 94.(1) The Chairperson shall ensure the orderly and expeditious discharge of the mandate of the Committee
• (2)Without limiting the generality of subsection (1). the Chairperson shall
• (a)constitute a panel to hear any matter before the
• Committee,
• (b)determine the place at which a panel may sit,and
• (c)determine the procedure for the conduct of the
• business of the Committee.
• (3)A panel constituted for any proceedings shall have at least three members,one of whom shall be an advocate of the High Court.
• (4)At a hearing of a matter before the panel
• (a)if the chairperson is a member of the panel as constituted the Chairperson shall preside,or
• (b) in any other case,the Chairperson shall designate one ofthe members of the panel who being an advocate of the High Court to preside over the proceedings
• (5)Where a member of the panel ceases to be such a member,or is not available forthe proceedings,the Chairperson of the Committee shall assign another member to the panel and the proceedings shall continue.

PARTXII-OFFENCESANDPENALTIES

国

togambling prenke

• 95.Aperson,owner or occupier of a licensed
• gamblingpremisesor electronic sitewho
• (a)allows such premise to be used for unlicensed gambling activities,
• (b) aidsinthecarryingoutofunlicensed management of electronicgamblingsite or unlicensed betting activities,
• (c) announces,publishes,cause to be announced cause to be published,either orally or by means ofany print,writing.design,sign,or otherwise or gambling activity or site:

Conductof business and affain of the Comnittee

Offenosrelating

• (d)advances,fumishes,or receives money for the purpose ofestablishing or conducting unlicensed gambling activity:or
• (a) opens,keeps,uses,causes or permits the use ofa premise for carrying on an unauthorized lottery,

commits an offence and shall be liable upon conviction to a fine not exceeding one million shillings or to imprisonment fora term not exceeding oneyear orboth.

False declaration.

• 96.Aperson who makes afalsestatement or declaration in an application for issuance or renewal ofa licence or permit,commits an offence and shall be liable upon conviction toa fine not exceedingone million shillingsor to imprisonment for a term not exceeding one year,ortoboth
• 97.Aperson who transfers a licence without the approvalof the Authority ora county govermment commits an offenceand shall beliable upon conviction to a fine not exceedingone million shillings or toimpnisonment fora termnot exceedingone year or toboth.

Transfer ofa licence without theapproval of Authority.

• 98.A licensee who fails to keep any book,record,or account required to be kept under this Actor keeps false records,orinformation or who makes or causes to bemade any book entry which is false commits an offence and shall be liable upon conviction to afine not exceeding one million shillingsor toimprisonmentfor a termnot exceedingoneyear.
• 99.Alicensee who refusesor fails to submit a statement of accounts when required by the Authority,the respective county government or the Collector or submitsa false or misleading statement ofaccounts commits an offence and shall,upon conviction,be liable to a fine not term not exceeding oneyear,orto both

Failure to keep pruper books of

accounts.

Failure to submit dccouata

• 100.A person who fails topay a levy or any fees prescribed under this Act shall be liable to pay to the Authority and County Government all outstandingamounts oflevies or feestogether withinterest thatwill accrueat the rate prescribed by the Cabinet Secretary in Regulations

Failure to pay levy ora

prescribed fee.

• 101.A person who operates or conducts any form ofOpetingwithoul gambling without a valid licence commits an offence and prohibited. shall beliableupon conviction

• (a)for a first offence,to a fine not exceeding three million shillings or to imprisonment for a term not exceeding three years or to both,and
• (b)for a second or subsequent offence to a fine not exceedingfivemillionshillingsorto imprisonment for a term not exceeding five years ortoboth.
• 102.A person who prints,publishes,or causes to be to an unauthorized lottery,or relating to the sale ofa ticket or chance in any such lottery commits an offence,and shall be liable upon conviction to a fine not exceeding one million shillings.or toimprisonment for a term not exceeding-one yearor toboth.

Advertisemoats of uauthorized

• 103.Apersonwho promotes or proposes an unauthorized lottery be promoted either in Kenyaor
• clsewhereor

Sale distributionod mauthorized bicketi

• (a) prints a ticket to be used in an unauthorized lottery,
• [b) sells or distributes,or offers or advertises for sale or distribution,or has in his or her possession for the purpose of sale or distribution,ticketsor chances in a lottery:
• (C) distributes,or has in his or her possession for the purpose of distribution-
• (i)an advertisement ofan unauthorized lottery:
• (i)a list of prize winners or winning tickets in an unauthorized lottery,or
• (ii)any matter descriptive of the drawing or intended drawingofa lottery relating to an unauthorized lottery.which is intended to actasaninducementtopersons to participate in thelottery or in other lottery
• (d)brings,or invites any person to send,into Kenya for thepurpose of sale or distributionofa ticket or advertisement ofunauthorized lottery:or
• e) sends or attempts to send out of Kenya any valuable thing received in respect of the sale or

distribution,or a document recording the sale or distribution,or the identity of the holder,ofa ticket or chance in the lottery,

commits an offence and shall be liable upon conviction to a fine not exceeding one million shillings or to impnisonment fora term not exceedingone year or to both.

• 104.(1)A person who acts,facilitates or camies on business contrary to the termsof a licence issued under this Act comimits an offence and shall be liable upon conviction toa finenot exceeding tenmillionshillings or to imprisonment for a term not exceeding ten years or to-both:

Provided that this section shall not apply to an employee ofa licensee acting in the course ofemployment, ata licensed betting premise,or at an authonized race meeting.

• (2)The provisions ofsubsection (1) shall not apply to anemployeeofaperson licensed to operatea totalisator who is engaged in lawful operation in a manner approved by the Authority
• 105.A person who in connection with a totalisator in respect of which a licence has been issued under this Act
• (a)receives or permits to be received abetting transaction on a totalisator in respectofa horse race or any other race after the start ofthe race
• (b)registers on that totalisator after the start ofa
• horse race or other race any moneys received in respectof thatrace,or
• (c)takes into account in the calculation or payment registered on that totalisator,

conviction to a fine not exceeding one million shillings or toimpnisonment fora term notexceeding oneyear orboth

106.A person who

• (a)promotes a pool betting scheme withinKenya in contravention with the terms of a licence issued
• under this Act,or

apainst unlicemed

Prohihition bookmaking

Prohhition of bte

bets.

Pramobion of ummthorized pool berting.

• (b)promotes,receives or negotiates bets on behalf of apromoter of an unauthorized pool betting
• scheme commits,

an offence and shall beliable upon conviction to a fine not exceeding one million shillings or to imprisonment for a term not exceeding oneyear orboth.

• 107.A person who in connection with an unauthorized pool betting scheme-
• (a)prints a coupon to use in such a scheme,
• (b)sells,distributes,offers or advertises for sale or
• distribution,
• (c)has in his or her possession for the purpose of sale or distribution a coupon relating to sucha
• scheme,
• (d) distributes or has in his or her possession for the purposeof distribution-
• (i)an advertisement ofthe scheme,
• (i)a list of prize winners or winning coupons in the scheme,or
• (ii)anysuch matter descriptiveofthe determination orintended determmination ofa prize of a winner relating to the schemewith theintention ofinducing apersonto participate in the scheme.
• e) brings,or invites any person to send into Kenya for the purpose of sale or distribution a coupon relating to an advertisement of the scheme;
• sends or attempts to send out ofKenya any money or valuable thingreceivedinrespect ofthe sale or distribution,or any document recording the sale distribution,or the identity of the holder ofa coupon in the scheme,
• prints,publishes,or causes to be printed or published,an advertisement or any notice or to the issueofa coupon or a dividend relating to the
• scheme;or

Offeacesrelting lopoal beting schemes.

• (h)takes or sends out of Kenya money in connection with any pool betting scheme authorized under
• the Act,

conviction toa fine not exceeding one million shillingsor to impnisonment for a term not exceedingoneyearor both

• 108.Aperson who permits a bookmaker to carry on business at a race meeting outside the scope of the conditions ofpermit issued commits an offence and shall be liable upon conviction to a fine not exceeding one million shillings or to impnisonment for a term not exceedingoneyearor to both
• 109.A person who holds a race meeting or owns or
• operates aracecourse without a valid licence commits an offence and shall upon conviction be liable to a fine not exceeding four million shillings or to imprisonment fora term not exceedingfouryears or to both
• 110.Aperson who touts or solicits the membersof the publicwith a bookmaker outsidea licensedbetting premises or at an authorized race meeting.commits an offence and shall be liable upon conviction to a fine not exceeding one million shillings or to imprisonment for a termnot exceedingoneyear ortoboth
• Il1.A person who permits in an unlicensed betting
• premise the playing of a game of chance commits an offence and shall be liable upon conviction to a fine not exceedingone million shillings or to impnisonment for a term not exceedingoneyear ortoboth

112.Aperson who-

• (a)bets with a child:
• (b)employs a child in a licensed betting premises or in connection with a pool betting scheme or in the
• effectingof anybetting.
• (C) receives or negotiates a bet through a child,or
• (d)sends to achild any information,notice, advertisement, letter,or other document relating to betting,

Uewthorized hookmaking.

Uhautborized recimg.

Prohibition -Suno sni

Prolibition agaimsi playing games ofchance Inunlicensed beting premise.

Prohibition agninst being

withachild.

commits an offence and shall be liable upon conviction be liable to a fine not exceeding one million shillingsor to imprisonment fora term not exceeding one year or to both

• 113.A person who while playing with an instrument ofgambling or in takingpart in the stakes or wagers or in betting on the sides,or hands of those that are playing or in wagering on the event of a gamble,sport,pastime or exercise through unlawful means wins from another person or on behalf of another person,a sum ofmoney or valuable thing commits,an offence and shall be liable upon conviction to a fine not exceeding two million shillings or toimpnisonment for a term not exceeding two years,or to both.
• 114.In exercising discretion on the amount ofpenalty lobe charged or imprisonment term to be imposed on an offender.the court shall considerthe followingfactors-
• (a)the gambling activity in issue;
• (b)the investment amount incurred in the gambling
• activity in issue;
• (c)the duration of the offence,and
• (d) any other aggravating factors.

PARTXHII-MISCELLANEOUSPROVISIONS

• 115.(1)The Authority and the county govermment may appoint duly qualified officers to be inspectors of the Authority and county government,respectively for such areas units as shall be specified
• (2)An inspector appointedundersubsection (1) shall-
• (a)
• monitor compliance with the provisions of this Act,
• (b) monitor the operations of all licensed gambling
• operations,
• (C) examine equipment and devicesused ingambling and scrutinize records maintained in respect of the gambling activities,
• monitor the handling and counting of money on
• (d) casino premises:

Obtainingmoney by cheating in lwful gambling orhy wagering.on anyevenl

Consideralion by

acourt

Appointment of imspectors.

• (e) receive and investigate complaints from gambling patrons,licensees or members of the public in relation togambling:
• assist in anymanner where necessary in the detection of offences committed under this Act onall gamblingpremises;
• report to the Board on the conduct of gambling
• operations,and
• (h)perform such other functions as may be required under this Act.
• 116.(l) A gambling inspector on production of an authority document,may in the performance of duties
• under this Act,at all reasonable times enter without warrant and inspect a gambling premise or any other gambling event in which he or she has reason believe that an offence under this Act or under any regulations made thereunder, hasbeen committed to
• (a)examine and take copies of books,accounts and documentsrelating or appearing to relate to any betting transaction,lottery or gambling.
• (b)seize,remove or detain a book,accountor document or any equipment which he or she has of an offence under this Act or any regulations
• reasonablecause tobelieve shall afford evidence made thereunder,or
• (C) require theowner or occupier of the premises to render such explanation or give such information relating to any bettingtransaction,lottery or gambling as may be reasonably required by him orherin theperformanceof his orher duties
• (2)Aperson who resists hinders or obstructs a person actingin pursuance ofany of the provisions of this section or who on a requisition under subsection (l).withholds information orgivesinformation knowingor having reason tobelieve that the information is false or misleading commits,an offence and shall be liable on conviction to a fine not exceedingone million shillings or to impnisonment for a term not exceeding one year or to both.

117.Where an offence under this Act is committed by

a body corporate,every person charged with or concemed and inpect land and preraises.

Offences by body corporate.

or acting in,the control or management of the affairs,or activities of such body corporate,commits that offence and shall be liable to be punished accordingly unless it is proved by such person that the offencewasnot committed through no act or omission,on his part, he was not aware that the offence was being or was intended or about to be committed,or that he took all reasonable steps to prevent itscommission

• 118.(l)A person who has recognized that their gambling is harmful to himself or herself,or giving rise to difficulties in limiting the money or time or both,spent on gambling.leading to adverse consequences for that person, others,or for the community,may voluntarily enter a selfexclusion agreement between himself or herself anda licensee to be excluded from all gambling establishments and all controlled games,including online gambling or any other gambling activities orprivileges
• (2)The holder of a licence issued under this Act shall-
• (a) establish mechanisms to give effect to selfexclusion and take all reasonable steps to refuse serviceor to aperson who entersa self-exclusion agreement from participating in gambling:
• (b) as soon as practicable,take all reasonable steps to prevent anymarketing material from being availed to a self-excluded customer,
• (c) take stepsto remove thename,contact information and other details ofa self-excluded person from any marketing databases used by the licenseewithin twodays.ofreceiving the completed self-exclusion notification;
• (d) close any customer accounts ofan individual who has entered a self-exclusion agreement and retum any fundsheld in the customer account;
• (e) put into effect procedures designed to ensure that an individual who has self-excluded shall not gain access to gambling services.
• (3) An operator who fails to implement a self exclusion request within seven days ofreceipt ofa written

Self-exchusion notification shall be liable to pay an administrative fine as may beprescribedby theAuthority

• 119.(1)Where a person issued witha licence under this Act is convicted of an offence under this Act,the court mayorder forfeiture orcancellation oflicence ora forfeiture of the insurance security bond or bank guarantee provided by thelicensee,where applicable.
• (2)A person whose licence is cancelled in pursuance ofan order under subsection (l)shall,bedisqualified from holding or obtaining a licence or a further licence for a period offive yearsbeginning on the date ofthe conviction whichgaverise to theorder.

Provided that the court may include in the order a direction that the period of disqualification shall be shorter than five years asthe court may specifywhere it appears to the court to be just in all the circumstances

• (3)Abookmaker,promoter ofa pool betting scheme. organizer or manager of licensed gambling premises,ora servant or agent,who employs in his or her business any person known to him or her to be disqualified under subsection (2)commits an offence and shall be liable on conviction to a fine not exceeding one million shillings or toimpnisonment for a term not exceeding one year,or to
• both.
• 120.The police shall,in coordination with the
• Authority and county governments have power to seize any illegal gambling.bettingand lottery machines.
• 121.The Director of PublicProsecutions may appoint aduly qualified officer ofthe Authority,to be a public prosecutor for the purposes ofany case.
• 122.(l)The Cabinet Secretary may in consultation with the Board,make regulations generally for the better carryinginto effect of any provisions under this Act
• (2)Without prejudice to the foregoing.regulations made under this section may provide for-
• (a)the procedure to be followed by the Authority in exercising any powers conferred upon it by this
• Act,

Fofeitureof loxnoeor secunity.

Power lo scize machines.

Prosecution of offences.

Power lomke Regulntions.

• (b)the procedure to be followed in the making of an applicationfor the issuance,renewal and variation ofa licence or permit issued under this Act,
• the conduct of casinos,gambling machines and
• (c) online gambling.
• (d) the conduct ofanational lottery:
• [e) standardization of gambling machines;
• the location and distribution of lotteries and gambling,
• (g)national lottery rules;
• (h)fees and levies charged under this Act;
• the form and manner in which retumsor statements of accounts shall be furnished to the Authority:and
• proximity of gambling premises and advertisements toleaminginstitutions.
• (k)
• protection of winners,
• guidelines for gambler exclusion mechanisms forexclusion,court ordered cxclusions and
• including self-exclusion,venue-initiated request request by families or initiated parties.
• (2)For thepurposesofArticle 94(6)of the Constitution
• (a)thepurpose and objective of the delegation under this section is to enable the Cabinet Secretary to make regulations for better carrying into effect the provisionsofthis Act,
• the authority of the Cabinet Secretary to make regulations under this Act will be limited to bringing into effect the provisions of this Act and fulfilment of the objectives specified under this section,
• (c)the principles and standards applicable to the rules made under this section are those set out in the Statutory Instruments Act,2013

• 123.The Betting Lotteries and Gambling Act is
• repealed.
• 124.(1) For the purposes of this section "former Boardmeans the Betting Control and Licensing Board existing immediately before at the commencement of this Act
• (2)Upon the commencement of this Act,all rights duties,obligations,assets and liabilities attaching to the Government on behalf of the former Boardshall be automatically and fully transferred tothe Authority established under section 6,and any reference to the former be deemed tobe areference to theBoard established under seclion6ofthisAct
• (3)Apersonwhoimmediatelybeforethe
• commencement of this Act was a member of the former Board shall,upon the commencement of this Act,be deemed to bea member of theBoard
• (4)Aperson who.was,immediately beforethe commencement of this Act was an employee of the Government and who was serving at the former Board shall,upon the commencement of this Act,bedeemed to be anemployee of the Authonty
• (5)Despite subsection (2),all the employees of the Govermment who were serving at the former Board shall upon the commencement of this Act be given an option to elect to serve in the Board or be redeployed in the public service within a peniod ofoneyear.

Transiionof

lieences and

• 125.(1) All gambling activities including casinos and online gamblingwhose licence were issuedunder the repealed Act shall remain valid for the period of the licence.
• (2)A person licensed under the repealed Act shall. upon expiry of the licence issued under the repealed Act, apply to the Authority for a new licence.
• 126.TheProceeds of Crime and Anti-Money
• Laundering Act,2009 is amended

Repeal ofCap. 13L.

Transitional provisions

Consequntial anoendmants.

• (a)in section 2in the definition of"designated nonfinancial businesses or professions"by deleting paragraph(a)and substituting therefor the followingnew paragraph
• (a) persons licensedunder the Gambling Control Act,2023,
• (b)in the First Schedule by deleting paragraph (c)
• andsubstituting therefor the following paragraph-
• (c)Gambling Regulatory Authority:

FIRSTSCHEDULE

(s.13)

CONDUCTOFBUSINESSANDAFFAIRSOF

THEBOARD

• 1.(1) The Board shall meet not lessthan four times in every financial year and not more than four months shall elapsebetween the date ofone meeting and the date of the next meeting

Mecungs

• (2)Unless three quarters of the members otherwise agree,at least fourteen days'notice in writing of a meeting shall be given to every member.
• (3)Ameeting shallbe presidedoverbythe chairperson or in the absence of theChairperson,the members present shall appoint one of their members to preside at the meeting.
• (4) Unlessa unanimous decision is reached,a decision onanymatterbeforetheBoardshall bebyamajority ofthe votes of the memberspresent and voting.and in any case of an equality of votes,the chairperson or the person presiding shall have a castingvote.
• (5)The chairperson shall,on the written application of one-third of themembers,convene a special meeting 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 ofthe meeting shall be two thirdsofthe members.
• (2)A decision of the Board shall not be invalid by reason only of a vacancy among themembers thereof.
• 3.(1)Ifaperson has a personal or fiduciary interest in any matter before the Board and ispresent at a meeting of the Board or any committee atwhich such a malter is the subject of consideration,that person shall as soon as is practicable after the commencement of themeeting.declare such interest and shall not take part in any consideration or discussion of.or vote on any question touching on such matter.

Qaonam

Conllictof inlerest.

(s.29(1)(a))

SECONDSCHEDULE

| | 100.000 | | | | 000'5 | | | | | | 5.000 | | | | | | |-----------------------|--------------------------------------|------------------|--------------------|----------------------------|----------|--------------|-------------------|--------------------|----------------------------|----------|------------------------------------------|--------------|------------------------|----------------------|--------------|---------------------| | | 25.000 | 000'5 | 000'05 | 5.000 | 000'9 | | 5.000 | 000'01 | 15.000 | | 5.000 | 000'S | 1,000 | | 000'5 | 000'S | | s jonuuy | 000005 | 50.000 | 50.000 | 000001 | 50.000 | | 50.000 | 00000 | 150,000 | | 50.000 | 10.000 000'Z | | | 50,000 | 10.000 | | Fee Grant(KSh) | 3.000,000 | 200,000 | 200.000 | 400.000 | 100,000 | | 200.000 | 000'005 | 700.000 | 100,000 | | | 5,000 per race meeting | | 500,000 | 100,000 | | | 2,000.000 | 510.000 | 000'0T5 | 1.110.000 | | | 510.000 | 000011' | 1,510.000 | 00001 | 000 | 0002 | 000 | | 510,000 | 000'015 | | | 1.250,000 | 000'09 | 000'09 | 60.000 | | | 60.000 | 60.000 | 000'09 | 000'01 | 2.000 | 0002 | 0007 | | 60,000 | 60,000 | | Licence/Pernit fosadk | Public Gambling(Casino) Book makers: | (i)On the course | (iijOff-the-course | (ii) On-and-off-the-course | Premises | Totalisator. | (1) On the course | (ij OfT-the-Course | (ii) On-and-off-the-course | Premses: | () Stand-alone Machine (i)Full premises | (ili)Kiosk | Bookmaking at Race | Pool Betting Scheme: | (i)Promoter | (i)Principal agent |

| Fee (Location) (SY) | | 5.000 | 5,000 | | | | | | |------------------------|----------|----------------------|--------------------------------|-------------------------------------------------------------|-----------------------------------------------|----------------------------------------|-----------------------------------------------------|-----------------| | Renewal Fee | 000'1 | 000'S | 000'5 | 0001 | 25.000 | | | | | | 2,000 | 000'o5 | 000'01 0007 | | 500,000 | | | | | | | 100.000 | 50,000 | 3%of total KSh.75.000 whichever is | 000000 | 6.000per lottery for each | (3months) | 000'9 (3months) | | Application saa | 000'2 | 000'01 | 000'01 0002 | 0007 | 000000 | | 0OS | | | 10307) | 2.000 | 000'01 | 000'01 0002 | 000 | 1,500,000 | | | | | fosadkl Lieence/Permit | (i)Agent | (iPromoter Premises: | (i)Principal Agent (ii) Agent | (i)Fora specific charitable PublieLottery: (3months) asodmd | (i) For various charitnble purposes (Annual) | Public lotteriesrelated to horscracing | Savings for clubs/societies funfairs): (i) Nairobi | (i)Other Areas |

| Fee (Location) (Sy) | | | | | | | | | | |-----------------------|--------------------------------------------------------------|------------------|--------------------|-------------------|-------------------|--------------------------|---------------------|--------------------------------------------|-------------------------| | Renewal Fee Licence | | | | | | 000'5 | 10,000per machine | 000'1 | | | LicenceFee jonny (SY) | 5,000per table | | 2,000per machine | | | 000'001 | d0000 machine | 5.000 | | | Fee Granr(KSh.) | | table | | 6%oftotal | 000'01 (3months) | | 000002 per location | 25,000 | | | (udiaro) (ey) | adost | | 250per | | | machine | 000005' | | 000 | | Applicntion s | aadosz | table | machine | adoos application | 000 | 000`S | 150,000per | | | | fosadai | Kisumn, Nakuru,Thika, Malindiand Eldoret (i)Nairobi,Mombasa, | (i) Other Places | Amusement machines | Prize competition | Private lotteries | station promotions Radio | Gambling machine | competition and lotteries Promoterof prize | Duplicate of licence or |

| Fee (Location) (USy) | | | | | | | | | | | | | | |--------------------------|-------------------------------------|-----------|-----------|-----------------------------|-------------------------|---------------------------|--------------------|--------------------------------------------------------|---------------------------|---------------------|-------------------------------------------------|-----------------|--------------------------------------| | Renewal Fee (sy) | 50.000 | 000'05 | 000001 | 000'05 | 000'05 | 000'05 | 000'05 | 00000 | | 000'01 | | | 000'05 | | Licence Fee jonuuy (USY) | 000'0005 100,000 | 000'000 | 1,500,000 | 000001 | 000001 | 00052 | | 0000001 | 50,000 | 000'05 | 0001 (0)) 00002 | ()) | 000052 | | 20,000.000 | 200.000 | 5,000.000 | 000000 | 000002 | 000002 | 000000 | 000'000'1 | 000000 | 000'05 | 000'05 | 000'S (0)) 50.000 | | 1.000,000 | | Fees rysy | 000'000'5 10,000 | 000000 | 000000 | o00'o5 | | 0O0'00S | 000005 | 000002 | 000'02 | 00002 | 00S | | | | | 5.000,000 000'01 | 0000000 | 000000 | 000'0s | | 000'005 | 000'005 | 000002 | 00002 | 000o2 | 500 (Local) | 5.000 (Forcign) | 500,000 | | | Pool table(Online) National Lottery | | online) | OnhineVirtual games/Fantasy | Gambling prediction App | Softwareplatformpruvider. | Gambling Equipment | Gambling cquipment Manufacturer fee licenco suppliers: | Service provider Gambling | Gambling equipment. | Key Gamblingemployees license(Senior dealer and | | Gambling Equipment Manufacturer fee. |

| Fee(Location) (uSy) | | | | | | | | | | | |--------------------------|---------------------|--------------------------------------------|---------|--------------|--------------|-------------------|---------------|---------------------|-------------------------|-----------------------| | Reneival Fee | | | 50,000 | 000'05 | 50.000 | 50.000 | | | | | | goniruy (SY) | 000'05 | 50,000 | 500,000 | 000'001 | 500,000 | 200,000 | | | 000'01 | | | Fee Grant (KSh.) Licence | 000001 | 100,000 | 500.000 | 000007 | 1.0000,000 | 000'005 | 00002 (squow) | 00002 | 00002 | 5,000 per letter | | Application s fyey) | 5.000 | 10,000 | 000'001 | 000'01 | 000001 | 20,000 | 000 | 000'5 | 0000 | adoos letter | | (0307) | 000'S | 10.000 | 100.000 | 000'01 | 100,000 | 00002 | 0007 | 5,000 | ) | | | fosadi Licence/Permit | Gamblingconsultancy | Gambling Equipment and Seller/Distributor/ | | Casino Bingo | Online Bingo | Poker room permit | | Postponementof draw | within betting premises | Lelters ofnoobjection |

THIRDSCHEDULE

DECLARATIONS

• (a)A certificate ofincorporation of the business,
• (b)Abusiness plan indicating the minimum investments and sources of the funds;
• (c)A valid premium rated service provider where applicable,
• (d)A valid contract with an odds feed provider where applicable;
• (e)Income tax declarations for the preceding two years (if applicable);
• (f)Tax compliance certificate,
• (g)Financial reports for the preceding two years (if any)
• (h)Licensee's gambling account,
• (i)List of directors of the company;
• ()Adisclosureofitsbeneficialownership
• information in accordance with the Companies Act,2015,
• (k)Memorandum of association or partnership deed orabusiness registrationcertificatewhere applicable,and
• (l)Relevant documents showing technical specifications of hardware and software to beused to conduct the Gambling.

(s.29(1)(e),36(3))

No.17of2015

FOURTHSCHEDULE

Gambling Security

| Type of Gambling | Type of Gambling | Amount (Shillings) | |--------------------|--------------------------------------------------------------------------------------------------------------------------|----------------------| | (a) | Casinos including public Gambling for conducting tables and slotsmachines | 20,000,000 | | b) | online Gambling | 200,000,000 | | (c) | National lottery | 200,000,000 | | (d) | Totalisator | 5,000,000 | | (e) | Prize competition | 5,000,000 | | | Non-online Gambling including non-online bookmakers,non-onlinecasinos, non- online lotteries | 20,000,000 | | | (g)Amusement with prizes | 200,000 | | (h) | A premise or a shop operatingunder a licence ofonlineGamblingincluding online bookmaker,online casino and online lottery | 500,000 |

(s.40(1)

MEMORANDUMOFOBJECTSANDREASONS

The principal object of this Bill is to repeal and replace the Betting. Lotteries and GamingAct(Cap.131)provide for a legislative framework forthe regulation ofgambling in Kenya and alsoincorporate safe gambling principles in the gambling sector.The Bill seeks to regulate betting.casinos and othcr forns of gambling including the authorization ofprize competitions,public lotteries,media promotions.The following are the salient features of the Bill.

PARTI contains the preliminary provisions.

PART II (Clauses 4-5)contains provision on the functions of the National Govemment and county governments in the regulation of gambling activities.

Part Ill(Clauses6-26) contains provisions on cstablishment of the Gambling Regulatory Authority as a body corporate.the composition of thc Board,functions and powers of the Board,the conduct of business and affairs and remuneration of the Board.Clauses I6-18 provide for the appointment of the Chief Exccutive Officer,Corporation Secretary and other staff of the Board.Clauses 21-24contain the financial provision of the Board.Clause 25provides forpreparation and submission of quartcrly and annual financial and non-financial reports to the national Treasury and its performance and the performanceof theoperator.

Part IV(Clauses27-52)contains provisions on issuance oflicences and permits for gambling activities,application for licence and permits license fees,application for gambling permits.permits fee.submission of security,security for casinos and online gambling.gambling capital. Clauses 45-46)provide for the Gambling tax payable and gambling levy tofacilitate researchontheimpact of gambling.establishmentof treatment and rehabilitation programmes foraddiction disorders.

Part V (Clauses53-60)providesforauthorization ofpublic lotteries for charitable purposes,the powers of the Authority in respect of public lotteries,authorization of lotleries relating to horse racing,cxcmption of certain types of lotteries.conducted for charitable,sporting or other purposes,exemption of licence on lotteries forcharitable,sporting or other specifiedpurposes and regulationofprivateloltteries.

Part VI (Clause 61-66) provides for the issuance of permits for betting premises,issuance of bookmakerslicence,totalisator licence and, laying of totalisator,betting pools and betting odds,promoters licence in respect of bctting schemes and authorization ofbookmaking ata race meeting and the control of betting machines.

Part VIl(Clauses 67-69)provides for the licensing of casinos,the prescription of the maximum number of casinos,and the power of the Authority to inspect casinos and to ensure compliance by the presence of iis officers in casinos.

Part VIll(Clauses70-83)provides forlicensing ofonline gambling. conditions for grant ofa licence,control of online gambling activities, conformity ofonline gambling systems to standards and conditions set by the Authority,online gambling transactions,payment of prizes and remittance of profits and winnings,Clause 74provide for the minimum amount a person can bet online,registration ofplayers,players accounts lo be kept,dealing with players monies restricted,handling of players monies,players monies to be kept in separate accounts,financial reporting by a licensee and the requirements to be met foreign operators for the issuance of a licence.

PartIX (Clauses 84-89)provides for the authorisation of amusements with prizes,amusement machines,prize competitions,mcdia promotions with prizes and chain letters.

Part Xprovides for the manner in which advertisements of gambling activiticsshould becarried out.

PART XI (Clauses 91-94)provides for establishment and jurisdiction ofthe Gambling Appeals Committee,the composition of the Committee and qualifications for appointment to the Committee,appeals from the decisions of the Committee and the conduct ofbusiness and the affairs of the Committee.

Part XlI (Clause 95-114)provides for offences and penalties

Part XIll (Clauses 115-126)contains provisionsonmiscellancous provisions including the appointment ofinspectors,power to enter and inspect premises,self-exclusion mechanisms,forfeiture of licence or security.powertoseize machines,transitionalprovisionsand consequentialamendments.

First Schedule sets the Provisions for the meetings and procedure of the Board.

Second Schedule prescribes the licensing fee for the various types of gambling activities.

Third Schedule provides for declarations to be made by an applicant ofa Gamblinglicence.

Fourth Schedule provides for the amounts of security that licensee should depositwith theAuthority todefray theliabilitiesoflicenseewhich may arise from alicensed gamblingactivity.

Statementon delegation of legislative powers and limitation of fundamental rightsand freedoms

The Bill delegates legislativepower to the Cabinet Secretary to make Regulations.The Bill docs not limit any fundamental rights or frccdoms.

Statement as to whether the Bill is a money Bill within the meaning of Articlel14ofthe Constitution

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

Statement as to whether theBill Concerns County Governments

This Bill is a Bill concerming county governments within the meaning ofArticle ll0 of the Constitution and the Fourth schedule to the Constitution.

Dalcd thc 26th October,2023.

KIMANIICHUNG'WAH, LeaderofMajority.