Recent
developments
Compliance by foreign nationals
On 1st April, 2019 the Cabinet Secretary
in charge of Interior and Coordination of National Government publicly announced
several proposed measures and changes in the regulatory framework of the gambling
and gaming sector in Kenya. One of the key directives required the Betting
Control and Licensing Board (“BCLB”) in conjunction with the Department
of Immigration Services to document all gaming and gambling operators and to
evaluate the immigration status of any foreign nationals involved in the operation
of these entities.
Perhaps following this directive, the Cabinet
Secretary speaking publicly on 20th May, 2019, ordered for the
immediate deportation of all foreign nationals engaging in gambling and gaming business
in Kenya without the required permits. The Cabinet Secretary also directed that
any foreign nationals who applied for work permits under different category but
were involved in gambling and gaming business should also be deported.
The Cabinet Secretary appeared to express concern that
the annual turnover in the gambling and gaming sector has risen exponentially
in the last 5 years but that the sector continues to owe the Government huge
amounts of money in unpaid taxes.
The latest pronouncement appears to be a follow-up
to the earlier pronouncement that all gambling and gaming licenses will stand
suspended with effect from 1st July, 2019 except licenses for those
players who will satisfy that they will have fully complied with their tax
obligations and the law.
Following the recent pronouncement, publicly
available reports indicate that the Government had as of 21st May,
2019 deported several foreign nationals who were found to be engaging in illegal
gambling and gaming businesses in Kenya.
New developments relating to advertisement of gambling
and gaming
In our last alert, we referred to a BCLB directive
dated 30th April, 2019 banning outdoor advertising of gambling,
advertising of gambling on all social media platforms, advertising of gambling
between the hours of 0600 and 2200 and endorsements of gambling operations by
‘celebrities’. We had anticipated that there would be heightened debate by
industry players on the legality and the extent to which these directives would
be applied and enforced and also whether the directives apply or can be
enforced in relation to advertisements on pay television channels that ordinarily
broadcast from outside Kenya and to internet-based advertisements on websites
that are not hosted in Kenya.
We are now aware that following these directives, a Constitutional Petition No. 169 of 2019 –
Murigi Kamau Wanjohi versus Cyrus Maina, Liti Wambua, Betting Control and
Licensing Board and The Honourable Attorney General (“Suit”)
was filed at the High Court of Kenya challenging the advertisement directives.
While this Suit still remains in court and it may
not be possible at this stage to predict how the court is likely to determine
the matter, there are currently in force interim orders issued by the court on
20th May, 2019 staying the implementation of the BCLB advertisement
directives pending the determination of an application filed in the Suit.
Conclusion
It will be interesting to see how the many
administrative measures being taken by the regulatory entities will affect the sector
in the coming weeks and months. We anticipate that there will be increased administrative
developments in the sector and, with these, increased debate by industry
players on the legality, effect and consequences of the various developments.
Overall, we are of the view that it is imperative
that industry players and stakeholders track these developments to ensure
compliance with any changes that may be effected or, where necessary, proposed.
In this regard, it may be important for entities in the sector to conduct
comprehensive audits of their operations to ensure full compliance with the law
and avoid inconveniences in their operations.
Lastly, we anticipate increased court proceedings
relating to the increasing developments in the gambling and gaming sector. In
particular regard to the Suit, we will track the developments and note to regularly
issue updates on the same.
McKay Advocates – Read More
