Source: BUSINESS TODAY
The industry stresses ethical practices by developing regulations that improve compliance and encourage responsible gaming
The concept of responsibility, however, takes center stage in Kenya’s gaming industry. It involves legal standards, ethical implementation of business activities, and the elimination of gambling-related problems. The sector realizes substantial growth; hence, the need to integrate responsibility in Kenyan Gambling Business as the core value is critical. It addresses the sustainability agenda through the support of industry trustworthiness, social welfare contribution, and provision of regulatory norms.
Regulatory Landscape
The supervision of the regulatory framework for gambling in Kenya mainly falls on the Betting Control and Licensing Board (BCLB), which was set up under the Betting, Lotteries and Gaming Act. The primary role of the BCLB is licensing and regulating activities within the gambling and gaming industry within the country.
Licenses usually go for 12 months, provided you comply with the terms provided by the BCLB. Non-compliance may mean paying fines and, potentially, the suspension or cancellation of licenses. The inspections are scheduled routinely to ascertain the continued fulfillment of the regulations.
In addition to these regulations, Kenya goes further and comes up with particular advertising standards so that gambling is promoted responsibly.
The code of conduct mandates that all gambling advertisements contain relevant information regarding responsible gaming, ensuring they are aired or published responsibly. On the contrary, the UK offers a service known as GAMSTOP, dedicated to fostering responsible gambling through an online self-exclusion program. GAMSTOP’s primary objective is to assist individuals facing challenges with online gambling by restricting their access to licensed online gambling platforms and applications based in the UK.
This initiative aims to provide support to those in need while promoting a safer gambling environment. Additionally, for individuals seeking alternatives, there are NonGamStopBets casinos with options outside GamStop providing to those looking for a different gaming experience. These sites offer a diverse range of gaming experiences beyond the UK’s self-exclusion scheme.
To the start of March 31, 2020, all gambling operators as per the licensing of the UK are obliged to register with GAMSTOP, namely making this system a part of a general regulatory scheme.
Economic Impact
The impact of gambling on the economy in Kenya is a major one; that is manifested nationally in terms of taxes and licensing fees. The Kenya Revenue Authority (KRA) collected over Sh6.64 billion as excise tax proceeds from betting during the one year which underlines the importance of the business in the financial sector.
This revenue comes from taxes and licensing fees remitted to the national government. The economic impact of gambling in Kenya is substantial, especially considering that its state plays the largest role through taxes and fees.
The KRA recorded an incredible collection of Sh6.64 billion in one single year of excise duties alone from betting activities. What follows is the fact that these taxes and fees prove that the sector has its magnitude in generating revenues for the country as well as other financial benefits.
Meanwhile, large volumes of casino transactions conducted through mobile money services like M-Pesa further illustrate the intersection of the casino and banking sectors. For comparison purposes, Kenyans transacted six times more money than this through their mobile wallets in a year.
The state levies a gambling tax to finance various national and social programs. Another instance is the new taxes suggested for the Gambling Control Bill, 2023, which is aimed at financing the opening of recovery centres and enlightenment programs on the dangers of gambling.
Social Implications
The social effects of gambling in Kenya, particularly among the youth, are complicated. The issue of gambling addiction is gaining ground as it is identified as a major public health issue. It involves frequent gambling that creates sustainability of extreme stress and hinders key life areas. This dependency may go along with psychological problems like depression and fear. This can lead to severe economic problems and interpersonal conflicts.
The addictive qualities of gambling are partly explained because of its ability to activate the reward system in the brain, just like the effects of drugs or alcohol. This power can lure a man to a dependency, which is very difficult to fight without necessary support and help.
Evidence shows that in Sub-Saharan Africa, including Kenya, the youth have a high tendency to participate in gambling activities. This case is alarming since they can easily become addicted to these behaviours, and their future might be ruined by negative consequences associated with excessive gambling.
Different mechanisms and support systems have been developed to solve these problems. Education programs with an emphasis on raising awareness about the dangers of gambling and promoting responsible gambling behaviour should be a priority. Furthermore, put in place support systems for problem gamblers through counselling and treatment programs. In Kenya, there are efforts to embed such support in community health initiatives to provide the people affected by gambling disorders with timely and efficient help.
NGOs particularly fill this role by offering indispensable services such as psychotherapy and community reintegration programs. They campaign for access to medical and psychological care and family and community reintegration for those who are struggling with gambling disorder.
Corporate Social Responsibility
Gambling corporations use CSR to finance community projects that involve sports and education among the deprived. These activities regularly include developing and maintaining educational institutions, funding scholarships, and supporting youth sports programs. Moreover, some gambling entrepreneurs support healthcare and social care programs that address the negative consequences of gambling, like addiction support and counseling.
Challenges and Future Directions
Strict regulations aim to handle these issues, which is especially apparent in the Gambling Control Bill 2023, which focuses on penalties for non-compliance and player protection.
However, the social effect of gambling is yet another serious problem. The sector’s impact on financial stability and mental well-being remains under the microscope, and the government is looking at ways to make the sector more responsible for gambling. Furthermore, gambling has brought along with it money laundering, which will require stronger regulations and a good framework to protect users.
Moving forward for responsible gambling, Kenya’s case is promising due to technological advancements and increased regulation. The transition to web-based systems offers global access and reach but also demands additional regulation to deal with problems like online fraud and gambling addiction.
Conclusion
The role of responsibility cannot be overlooked when responsibilities are concerned with the growth and stability of the gambling sector in Kenya. So, the industry stresses ethical practices to achieve this end goal by developing regulations that improve compliance and encourage responsible gaming. By way of comprehensive laws like the Gaming Control Bill, Kenya seeks to keep gamblers out of addiction and exploitation. On the other hand, a safe gambling environment is created.
THE AUTHOR: BT Correspondent
