The Betting Control and Licensing Board (BCLB) needs Sh500 million to install a central monitoring system for effective gaming industry regulation, MPs have been told.
BCLB Principal Administrative Secretary Arthur Osiya told the National Assembly’s Committee on Sports and Culture that the betting regulator cannot effectively monitor and regulate the industry due to outdated laws and failure to deploy adequate technology.
“It is important to note that more than 80 percent of gambling activities in Kenya are online. Given the scenario, therefore, deploying adequate technology is the only sure way to effectively monitor and regulate the industry,” Mr Osiya said.
He told the committee chaired by Webuye West MP Dan Wanyama that the installation of a new technology, will help the board to effectively regulate the gaming industry and guarantee public protection, improve revenue generation, responsible gambling, investment growth, and development of the industry in Kenya.
Mr Osiya decried the inadequate funding of the BCLB operations by the Treasury arguing it has affected the implementation of their activities, leading to low revenue generation.
He told the committee that despite the underfunding, the board has managed to help the government collect Sh88.4 billion in taxes over the last five years.
The BCLB said the Treasury allocated the board a total of Sh531 million over the past five years for regulation of the betting and gambling industry.
He said the inadequate allocation of funds by the Treasury has affected the implementation of their activities, leading to low revenue generation.
“In the last five years the board was allocated Sh531 million, collected Sh 894.6 million in its own source revenue and Sh88.4 billion in taxes,” Mr Osiya said.
“This is a confirmation that if we are allocated adequate money, we will be able to effectively discharge our mandate and help the government collect more tax.”
He asked the committee to fast-track the enactment of the Gambling Control Bill 2023 which seeks to provide for a strong legal framework for regulation of the industry and guarantee public protection from harmful effects of betting and gambling.
Mr Wanyama assured Mr Osiya of the committee’s support in ensuring that the Treasury avails adequate budgetary allocations to facilitate the board to realise its mandate.
“The current Betting Lotteries and Gaming Act Cap 131 has a lot of loopholes that frustrate the board’s efforts to streamline the industry,” he said.
Mr Osiya said controlling the underage from involving themselves in gambling has remained a major challenge.
“We have faced an uphill task in dealing with the underage in the gambling industry. Most of these young people engage in betting using their parent’s mobile phones,” he added.
Mr Osiya said the board had made progress despite challenges in the regulation of underage betting and gambling.
He told lawmakers that the fight against illegal and unauthorised gambling has seen the board flag down 37 unauthorised foreign gambling websites alongside confiscating illegal gambling Chinese slot machines across the country.
“To promote and enhance responsible gaming activities, the Board has successfully undertaken sensitisation activities in 12 counties,” he added.