Why Kenya’s Online Betting Firms May Struggle Under the New Sh100 Million Security Requirement

A high-stakes cleanup of Kenya’s online gambling industry is underway — and this time, the government is aiming for the bank accounts.

A proposed amendment to the Gambling Control Bill would require betting firms to post a security deposit of Sh100 million, a dramatic leap from the current Sh250,000. The money, held as a bank guarantee, is meant to cushion punters in case companies go under or refuse to pay out winnings.

It’s a bold swing at a sector that’s grown too fast and too loose. With over 226 licensed betting firms now in the game — up from fewer than 100 three years ago — regulators are playing catch-up with an industry that’s moved faster than the laws trying to contain it.

Lawmakers backing the change say the goal is twofold: protect the public and force a level of seriousness in a space often filled with short-lived ventures and questionable liquidity.

“The money [Sh250,000] was a lot then,” said Peter Mbugi, CEO of the Betting Control and Licensing Board (BCLB). “But today, can it secure punter deposits in case the company closes?”

That rhetorical question has become increasingly real. Punters have raised alarms over disappearing balances and unpaid winnings, particularly from small firms with flashy ads but shallow reserves. The proposed Sh100 million requirement isn’t just a financial cushion — it’s a line in the sand.

The original pitch was even steeper. BCLB and MPs had floated Sh200 million as the new standard, but that figure was dialed down by Senators who felt it might overcorrect. The joint committee eventually settled on Sh100 million — still high enough to demand commitment, low enough not to collapse the entire ecosystem.

The money would be tied up in a bank guarantee. In practice, that means betting firms must convince a lender to stand behind them, a move that essentially forces external scrutiny on their financial health. If a firm can’t meet its obligations, the bank steps in to cover player deposits and unpaid winnings.

From a regulator’s perspective, it’s a built-in audit — one that could dramatically thin the herd.

The new requirement, if passed, comes at a time when betting firms are already juggling rising taxes, tighter enforcement, and public scrutiny. The era of easy entry appears to be closing, replaced by a harder, more expensive path to legitimacy.

The Bill seeks to replace Kenya’s outdated Betting, Lotteries and Gaming Act — a law that hasn’t kept pace with the digital explosion. Today’s punters aren’t walking into smoky betting halls; they’re tapping phones, drawn into sleek platforms by influencers and nonstop notifications.

This isn’t just about finance. It’s about control in a space that has become culturally and economically significant. Online gambling in Kenya isn’t niche anymore — it’s mass market, particularly among young people. And with size comes responsibility.

Not all firms will survive the new rules. Many won’t even try. But that may be the point.

What’s left, lawmakers hope, will be companies willing — and able — to play the long game.

Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke