Insufficient Government Funding Hinders BCLB’s Ability to Fulfill Its Regulatory Responsibilities Effectively
The Betting Control and Licensing Board (BCLB) has raised alarms about the escalating issue of illegal gambling, both online and land-based, while highlighting the critical need for increased government funding to effectively manage the board’s affairs.
In a presentation to the National Assembly Departmental Committee on Administration and Internal Security, the board noted that illegal gambling activities have surged on offshore websites and slot machines.
Mbugi pointed out that “inadequate budgetary allocation” is a significant obstacle preventing the board from fulfilling its regulatory responsibilities effectively. He revealed that the total budgetary allocation for the board in the 2023-24 Financial Year was Sh109.6 million, which pales in comparison to government tax revenues from gambling.
Additionally, BCLB director Peter Mbugi informed the committee that 80 per cent of gambling activity in Kenya, like in many other countries is online and less brick and mortar. He emphasized the importance of technological solutions, stating, “Given the scenario, deployment of adequate technology is the only sure way to adequately monitor and effectively regulate the industry.”
Mbugi further explained the challenges faced by the agency in combating illegal gambling, attributing it to the weak and old laws. He noted that “The enabling law was enacted in 1966. It is not deterrent enough.”
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He lamented that the board gets little allocation when compared to the taxes the government gets from gambling, mentioning that while the board received Sh109.6 million in the previous year, the government amassed Sh24.4 billion in gambling taxes.
Mbugi also provided a comparison, stating that the board was allocated Sh98 million in the 2022-23 Financial year yet the government collected Sh24 billion in taxes from gambling during the period. He reported that the revenue generated by the board for the fiscal years 2022-23 and 2023-24 was Sh173 million and Sh256 million, respectively. BCLB Funding Illegal Gambling
In addition to these financial constraints, the director cited issues such as inadequate staffing, training, tooling and kitting as well as exposure as further barriers to effective service delivery.
Mbugi emphasized the shift in gambling’s role in society, explaining that gambling has turned from a leisure activity to a source of livelihood due to unemployment and poverty.
The Betting Control and Licensing Board (BCLB) was established by Section 3(1) of the Betting, Lotteries and Gaming Act Cap. 131 – Laws of Kenya of 1966. As a regulatory agency, its mandate encompasses the control and licensing of betting and gaming premises, the authorization of public lotteries and prize competitions, and the eradication of illegal gambling.
