MPS RAISE SECURITY FOR ONLINE BETTING 400 TIMES TO KSH 100M

The Betting and Licensing Board (BCLB) had earlier placed the security fee for online gambling companies at KSh 250,000. However, 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.
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.
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.