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The Gambling Control Act, 2025 (Act No. 14 of 2025), officially took effect on August 26, 2025, ushering in a new legal and regulatory framework for Kenya’s multi-billion-shilling gambling industry. This landmark law repeals the decades-old Betting, Lotteries and Gaming Act (Cap. 131) and introduces sweeping reforms designed to modernize the sector, enhance compliance, and protect consumers.

In this article, we break down the key provisions of this Act, its impact on gambling operators, regulators, and consumers, and how stakeholders can successfully navigate compliance.

Key Reforms Under the Gambling Control Act, 2025

1. Local Ownership and Banking Rules

To obtain a betting licence in Kenya, companies must now:

• Ensure 30% local Kenyan shareholding.
• Operate through a local bank account held with a Kenyan bank.

This measure is designed to localize economic benefits and ensure greater financial accountability.

2. Establishment of a New National Regulator – GRAK

The Betting Control and Licensing Board (BCLB) has been dissolved. In its place, the Act creates the Gambling Regulatory Authority of Kenya (GRAK) under Section 6. GRAK is an independent, powerful regulator with authority to:

• License operators,
• Enforce compliance,
• Monitor gambling operations in real time.

3. National and County Government Roles

Sections 4 and 5 of the Act resolve a long-standing jurisdictional issue by dividing responsibilities between the national and county governments. For instance:

• GRAK oversees licensing and industry-wide compliance.
• County governments enforce local restrictions and reporting.
• Operators must report financials to both levels of government, enhancing transparency and accountability.

4. Gambling Security Requirements

A major reform is the sharp increase in minimum gambling security capital, which ensures only well-capitalized, compliant businesses can operate. Online Gambling Companies now need 100 million shillings in security capital to operate as detailed below;

This raises the bar from just KSh 250,000, effectively filtering out small operators.

5. Responsible Gambling and Consumer Protection

The Act introduces strict measures to curb problem gambling:

• Ban on celebrity endorsements in gambling ads.
• Mandatory responsible gambling warnings.
• Self-exclusion options within 7 days (temporary suspension, permanent exclusion, deposit/spending limits).
• Faster payouts: winnings must be credited within 2 days, and non-cash prizes delivered within 7 days.
• Penalties: Failure to implement responsible gambling measures attracts a fine of up to KSh 1 million or a term of imprisonment of up to 1 year.

6. Transparency Through Technology

Operators must now integrate their systems with a centralized electronic monitoring system overseen by the Kenya Revenue Authority (KRA) and the Communications Authority (CA). This enables:

• Real-time monitoring of wagers and payouts,
• Improved tax compliance,
• Closing of revenue leakages.

Implications of the Gambling Control Act, 2025

For Operators

• Higher operating costs due to KSh 100M minimum capital, tighter compliance, and advertising restrictions.
• Small operators may exit the market, leaving space for larger, well-capitalized firms.

For Government & Regulators

• Enhanced tax collection through real-time monitoring.
• Clearer division of regulatory powers between GRAK and county governments.

For Consumers

• Safer gambling environment with stronger protections.
• Benefits include age restrictions (21 years and above), quicker payouts, deposit limits, and self-exclusion tools.
• Risks include potential growth in informal, unregulated betting markets.

For Society & Economy

• Stronger consumer safeguards reduce addiction rates.
• Increased investor confidence in Kenya’s regulated gambling market.
• Long-term job creation from larger, stable operators

Final Thoughts

The Gambling Control Act, 2025 is a landmark reform that reshapes Kenya’s gambling industry. It balances consumer protection, transparency, and compliance with the need for a modernized regulatory framework.

At MasiboLaw LLP, we provide specialized legal advisory services for:

• Licensing and registration under the new Act,
• Regulatory compliance and audits,
• Investor and operator engagement with GRAK and county governments.

If you are an investor, operator, or technology company seeking guidance on Kenya’s gambling regulatory landscape, contact Masibo Law LLP for guidance on compliance with the new legislation.