Betting firms fight new gambling rules as court weighs massive fee hikes

The future of Kenya's gambling industry hangs in the balance as betting firms fight new regulations that threaten to dramatically increase licensing fees. Online bookmakers could face Sh50 million fees, and casinos Sh120 million, a stark contrast to the previous Sh200,000 and Sh7 million respectively. This legal battle, now before High Court Judge William Musyoka, centers on a lawsuit filed by lawyers Thomas Buckley Opal and Ken Brance against the Gambling Regulatory Authority of Kenya (GRA), the Attorney General, and the Prime Cabinet Secretary.

Opal and Brance contend that the 2026 regulations were enacted amidst confusion regarding the responsible ministry and allegedly without public consultation. They highlight that the new fees represent an astronomical increase, with some, like the online bookmaker license fee, jumping by 24,900 percent from Sh200,000 to Sh50 million. Similarly, pool and betting license renewals have surged from Sh5,000 to Sh2.5 million. The lawyers also point out a 500 percent increase in the required gambling capital for casinos, from Sh20 million to Sh100 million, arguing it exceeds Parliament's recommendations.

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The respondents have deliberately and unlawfully imposed a financial requirement that is 500 per cent higher than that which Parliament deemed sufficient.

The GRA's Director General, Peter Karimi, has pushed back, asserting that the fees and rules resulted from stakeholder consultations and that the increased requirements, including mandatory insurance coverage and higher capital, are necessary precautions. However, Justice Musyoka initially blocked the authority from enforcing the new rules. Karimi's subsequent court filing argued that this injunction has hampered the GRA's ability to process licenses, underscoring the ongoing tension between regulatory control and industry viability. The court's final decision will significantly shape the landscape for gambling operators in Kenya.

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The fees and the new rules were a result of consultations with the stakeholders. He stated that the requirements for gambling firms must have insurance coverage, and for gambling capital was out of caution that they must have the financial capacity necessary to establish and sustain such operations.