Kenya Raises iGaming Operator Deposit Requirement
The National Assembly of Kenya has approved the “Gambling Control Bill 2023,” which significantly increases the security deposit for online gambling operators—from just $1,700 to a steep $670,000.
New Financial Requirements for Online Betting
The Gambling Control Bill outlines a dramatic rise in both security deposits and licensing fees for all online gambling operators and national lotteries operating in Kenya.
| Requirement | Previously | Now |
|---|---|---|
| Security Deposit | $1,700 | $670,000 |
| License Fee | None / Minimal | ≈ $930,000 (non-refundable) |
| Total Financial Commitment | Approx. $1,700 | Approx. $1.6 million |
In total, each online operator must now commit around $1.6 million to obtain a license in Kenya.
Why the Steep Increase?
The National Assembly stated that the new requirements are intended to:
- Protect players financially – ensuring that operators can pay out winnings;
- Enforce business accountability – preventing companies from defaulting on obligations;
- Control the sector – deterring undercapitalized or unserious actors from entering the market.
While the Senate had proposed capping the deposit at KSh 20 million (around $134,000), the Assembly rejected the amendment, emphasizing the need for stricter regulations in the online sector due to its broader user base.
Market Impact
As of early 2025, Kenya had 118 licensed online gambling operators. However, analysts believe the new financial thresholds could lead to:
- The exit of smaller companies from the market;
- Industry consolidation among larger operators;
- Reduced competition and potentially higher consumer costs.
The government had previously shut down over 50 unlicensed platforms. Now, the new financial barriers are expected to further limit market entry for new players.
Additional Regulatory Measures
The legislation is part of a broader overhaul of Kenya’s gambling industry. In addition to financial requirements, the government is introducing:
- An excise duty increase on betting stakes to 15%;
- A 30-day ban on gambling advertising across media platforms;
- Initiatives to combat youth addiction to online gaming;
- Stricter oversight of taxes and payouts.
The law is being positioned as a move toward greater transparency and consumer protection. Backed by Parliament and expected to be signed by President William Ruto, its enactment is all but guaranteed.
Public and Industry Response
Reactions to the legislation have been mixed:
- Major operators support the stricter rules, which they say will weed out weaker competitors;
- Small businesses argue the financial bar is now too high to enter the market;
- Public advocacy groups welcome the reforms as a response to the social risks posed by gambling.
Instances of unpaid winnings, withdrawal delays, and sudden operator shutdowns were cited as key reasons behind the stringent deposit demands.
What’s Next?
Once signed into law by President William Ruto, the new regulations will become enforceable. Companies unable to meet the requirements will lose their licenses and be removed from the national registry.
Kenya is clearly signaling a move toward tighter regulation, stronger consumer safeguards, and the elimination of bad actors from its gambling market.