Why BCLB extended ban on betting ads

By Steve Umidha

Sports betting companies will have to wait a little longer for a likely lift on the ban on outdoor, social media and television advertisements for two more months, an industry regulator has said.

The Betting Control and Licensing Board (BCLB) yesterday said it was yet to finalize on the modalities and a practical framework to be used by betting firms if they are to resume commercial campaigns.

“We are yet to come up with those modalities and it is a process we hope will take at least two more months to be ready for use by operators,” said the Board’s Chief Executive Peter Mbugi in an interview.

Last week the Board began the renewal process of operating licenses for over 60 betting firms presently registered in Kenya – a process that is expected to end on July 30.

It had been hoped that the government would this month (July) allow gaming companies to commence outdoor, social media and television advertisements after several months hiatus – a decision that promises profound life changes for millions of Kenyans and the sports industry.

BCLB has been working on a structure on the aforementioned and was to issue a detailed communiqué on July 1, on a possible resumption of gambling advertorials which was halted in a directive issued on April 30, 2019.

“We are considering that option but we are still in consultations with other stakeholders on that matter. A communication will, however, be made in due course, in a month’s time,” said Mbugi in an interview in February where he confirmed that a total of 63 betting firms were registered locally. There are 22 licensed casinos in Kenya.

BCLB dealt a major blow to the now shrinking gambling business in its 2019 decision saying the move was meant to protect the public, particularly still-in-school children and under age citizens from addiction.

It banned many forms of advertising including television adverts from 6am to 10pm as well as celebrity endorsements that had been helping gambling firms woo clients.

The decision to allow operators to advertise on television for the first time in nearly two years also raises fresh concerns of an increase in problem gambling – with an increasing number of young and old Kenyans today taking part in gambling activities.

The betting control board, who is the industry regulator, had in the past few months indicated that it would rescind its decision to bar such companies from advertising on the aforementioned platforms once school kids were back in school.

The directive hit the betting industry hard, which also coincided with a protracted court battle over taxation of winnings. Local sports and media houses who heavily rely on the industry were also not left out.

The Kenya Parliament introduced the Gaming Bill in 2019 to monitor the system of gambling operators by imposing hefty payable taxes, a mandatory 30 per cent local ownership and disallowing gaming ads.