Kenya Targets Late Gambling Payouts with 5% Penalty and Daily Interest.
Kenya has proposed a gambling regulations which will penalize operators that fail to pay winners within 14 days.
This is a move by the government to tighten financial, technical and consumer safeguards under the Gambling Control Act, 2025. According to the reforms a licensee will pay the Gambling Regulatory Authority a penalty equal to 5%. Additionally the winner will be entitled to the unpaid amount plus interest accruing at 5% a day for the next 21 days.
Continued non-payment could trigger licence suspension. Prizes of up to KSh500,000 qualify for immediate automated payment after basic identity checks. Winnings of KSh500,001 to KSh5 million will be processed within five working days after additional ownership and anti-money laundering checks.
Payments of KSh5 million to KSh50 million will take up to 14 working days after enhanced verification. Jackpots above KSh50 million will take up to 30 working days and may involve structured payouts and financial counselling.
Powers Granted to The Gambling Regulatory Authority!
According to the proposal the regulator will give the new Gambling Regulatory Authority powers to license, inspect, audit, suspend and revoke casinos, bookmakers, lotteries, online platforms, bingo, jackpots and pool-betting operators. Firms will have to meet 18 conditions before opening. These will include tax and central-monitoring integration. Also adequate gaming capital, equipment inspection, director clearance, data protection certification and approved domains. They will also check geolocation controls, encrypted audit logs, segregated customer funds and real-time regulatory access.
Operators
Player data will generally be stored in Kenya, while unapproved online operations could attract a fine of up to KSh1 million, six months’ imprisonment or both. Operators will also be required to offer betting limits, session alerts and self-exclusion periods ranging from six months to indefinite exclusion.
Accepting bets from excluded players would require stake refunds, forfeiture of winnings to the Authority and possible licence sanctions.
Read Also: Victor Wanyama Partners with 22Bet to Support Grassroots Football in Kenya
Impacts on the Digital Side!
Advertising targeting minors or presenting gambling as a remedy for financial hardship will be prohibited. Also, gambling premises and advertisements within 200 metres of schools.
The draft contains differing charitable allocation thresholds, requiring at least 25% of gross lottery proceeds in one provision and between 30% and 45% of gross revenue in another, as authorities seek stronger consumer protection and anti-money laundering.
