The enactment of the Gambling Control Act, 2025 (the Act) marked a definitive departure from the Betting, Lotteries and Gaming Act, signaling Kenya’s intent to modernize oversight in a digital-first betting landscape. Key to this reform is the institutional shift from the Betting Control and Licensing Board (BCLB) to the Gambling Regulatory Authority (GRA), which now wields the broad administrative mandate necessary for the effective governance of the gambling landscape.
While the Act defines the broad legislative intent, the true operational efficiency of the Act lies in the pending subsidiary legislation. To fully operationalize the Act, the Gambling Regulatory Authority has developed Gambling Regulations. These Regulations provide the comprehensive operational framework required to guarantee a transparent, accountable, and strictly regulated gambling sector. They operationalize the Act, empowering the GRA to fulfill its mandate while protecting the public interest and advancing responsible gambling standards.
The GRA conducted public participation process on the draft Regulations, which concluded on 13th April, 2026, and now await the tabling of the finalized versions before the National Assembly’s Committee on Delegated Legislation for formal adoption.
The Regulations proposed for consideration are:
1. The Gambling Control (Licensing) Regulations, 2026
The Regulations transition the industry from a generic licensing model to a high-threshold, activity-specific regime. This transition is anchored primarily in specific capital requirements designed to ensure stability and fiscal accountability. Specifically, the new framework mandates substantial capital requirements, ranging from KES 50 million for hybrid online licenses to KES 2 billion for the National Lottery, before any application is processed. To further safeguard interests, operators must secure mandatory bank guarantees or insurance bonds to protect player winnings and tax obligations, with requirements set at KES 100 million for lottery and online gambling, and KES 20 million for land-based casinos. Furthermore, these financial barriers are accompanied by a significant upward revision of both application and licensing fees.
Beyond financial solvency, the regime introduces rigorous operational and compliance standards to boost local oversight. A key highlight is the 30% Kenyan shareholding requirement, supported by the GRA’s enhanced powers to vet Beneficial Ownership and eliminate nominee fronting. Foreign operators are now obligated to establish a tangible local presence through Kenyan registration, physical addresses, and dedicated customer care centers. To modernize oversight, the regulations require real-time system integration with GRA servers for live transaction monitoring and expand the licensing scope to include modern sectors like gaming software provision and equipment manufacturing. Notably, while the barriers to entry have increased, the licensing period has been extended from 1 to 3 years, providing greater long-term stability for compliant operators.
2. The Gambling Control (Conduct of Gambling Operations) Regulations, 2026
The Regulations provide on how the games are played, how the players are treated, and how the state monitors the flow of the money, thus transitioning from self-reporting by operators to active surveillance by the GRA.
To ensure total transparency, the regulation mandates a high level of technical integration and financial accountability. Operators are required to implement real-time monitoring by linking their backend systems directly with the GRA and KRA, making every bet placed, deposit made, and winning paid out visible to regulators instantaneously. Complementing this digital oversight is a strict requirement for segregated player accounts; operators are prohibited from co-mingling player stakes with operational funds. By mandating that these funds be held in ring-fenced accounts, the regulations ensure that player payouts remain protected and solvent at all times. Furthermore, all gambling hardware and software, including Random Number Generators, must undergo rigorous certification by GRA-approved laboratories to verify fair play and Return to Player percentages.
Social responsibility and player protection form the other cornerstone of these regulations. The regime introduces mandatory player registration, requiring valid National ID or Passport verification to strictly enforce the legal gambling age of 18. Marketing practices are also under heavy scrutiny; gambling advertisements are prohibited on TV and radio between 06:00 and 22:00, except during live sports, and the use of celebrities or influencers for endorsements is strictly banned. Additionally, 20% of all advertising space must be dedicated to responsible gaming messages. To empower the individual, a formal self-exclusion mechanism allows players to ban themselves from platforms, at which point operators are legally barred from sending them any further marketing materials.
3. The Gambling Control (National Lottery) Regulations, 2026
These Regulations provide the specific legal framework for the operation of a National Lottery under the new Act. The proposed regulations establishes a high bar for the National Lottery, beginning with a substantial minimum gambling capital requirement of KES 2 billion. To balance this significant capital requirement, the regulations offer more robust licensing stability through extended terms of seven to eight years. However, this comes with strict administrative obligations, as operators are required to initiate the renewal process a full two years before their current license expires. Furthermore, the National Lottery is not exempt from localization standards; it must maintain significant local equity, mandating at least 30% Kenyan ownership.
In terms of market reach and transparency, the regulations provide a formal definition for National Lottery Outlets and legalize a versatile hybrid distribution model. This allows for ticket sales through a multi-channel approach, including physical kiosks, retail agents, and digital platforms. To ensure fiscal integrity within this expanded network, the mandate requires real-time system integration with the GRA’s central monitoring system. This integration allows for the instantaneous tracking of ticket sales and the accurate monitoring of revenue splits, ensuring total transparency between the operator and the regulator.
4. The Gambling Control (Advertising) Regulations, 2026
To tighten the oversight on marketing, the GRA has introduced a rigorous vetting and placement framework for all gambling-related promotions. The proposed regulations mandate prior written approval from the GRA for any advertisement across digital or traditional media, with media houses sharing liability for airing unapproved content. Broadcasts on television and radio are strictly prohibited between 06:00 and 22:00, unless they occur during live sporting events. Furthermore, outdoor advertising is now limited to electronic billboards, which must be situated at least 500 meters away from learning institutions, religious centers, or playgrounds, and are restricted to a frequency of two advertisements per hour per operator.
To promote ethical marketing, at least 20% of all advertising space or airtime must be dedicated to responsible gambling messages. The guidelines explicitly ban endorsements by celebrities, athletes, or influencers and prohibit any content that portrays gambling as a solution to financial hardship or a path to social success. Additionally, aggressive calls-to-action like “Bet Now” are replaced by purely informational content. These standards are enforced by severe sanctions, including heavy fines and potential prison terms for any advertising breaches.
5. The Gambling Control (Gambling Appeals Tribunal) Regulations, 2026
To provide a structured path for dispute resolution, the Act establishes a specialist Gambling Appeals Tribunal, centralizing the judicial oversight of the industry. The Gambling Appeals Tribunal is vested with the specific jurisdiction to hear and determine challenges arising from several key regulatory areas. This includes reviewing GRA decisions concerning the grant, renewal, suspension, or revocation of licenses, as well as resolving disputes between players and operators regarding gambling transactions. Additionally, the Tribunal is responsible for addressing complaints related to the certification and functionality of gambling equipment, alongside any decisions made by County Governments regarding local gambling permits.
To ensure swift justice, the regulations enforce strict procedural timelines. An appeal must be lodged within 14 days of the original decision being communicated, and the Tribunal is required to deliver its judgment within 30 days of the hearing’s conclusion. While the Tribunal serves as the primary arbiter, a final layer of judicial review remains available; any party dissatisfied with a ruling may appeal to the High Court on points of law, provided they do so within 14 days of the Tribunal’s decision.
6. The Gambling Control (Foreign-Facing Operators) Regulations, 2026
The regulations establish clear, stringent conditions for international participation, effectively seeking to eliminate offshore gambling by ensuring all entities targeting the Kenyan market maintain a taxable and accountable local presence. To achieve local accountability, foreign-based operators must now undergo mandatory incorporation as a body corporate under the Companies Act, established either as a subsidiary or a locally registered branch with a permanent Kenyan footprint. This structural requirement is paired with a 30% Kenyan shareholding mandate, backed by the GRA’s authority to vet beneficial ownership and prevent nominee fronting. Furthermore, foreign operators are obligated to maintain a physical office and a local customer care center staffed by personnel capable of resolving player disputes and inquiries in real-time.
Financial and technical transparency are also central to the new regime. All transactions involving Kenyan players must be processed through a Kenyan-registered bank, with operators required to maintain local accounts for stakes and winnings to provide the GRA and KRA full visibility over capital flows. Technically, foreign operators must either host their primary gambling servers locally or maintain a real-time data mirror within a secure Kenyan data center. This ensures that platforms remain fully compatible with the GRA’s Real-Time Monitoring System, providing an uninterrupted data link for continuous compliance oversight.
In conclusion, the enactment of the Gambling Control Act, 2025, marks a fundamental shift in Kenya’s regulatory landscape. By mandating pre-approvals, time-based broadcast blackouts, and compulsory responsible gaming messaging, the Act balances market viability with robust consumer protection. The framework transfers the compliance burden to operators and media platforms, enforced by stringent penalties. This deliberate policy pivot prioritizes public safety and industry integrity, while fostering a secure, well-regulated environment that sustains both social responsibility and economic growth.
