Bid to regulate local gambling industry good

The National Assembly bill on the regulation of the betting industry sponsored by Nyeri Town MP Duncan Maina Mathenge is a step in the right direction.

It proposes to urgently tightly regulate lotteries and other kinds of gambling disguised as surveys and competitions and also SMS-based wagering by media organisations and enforcement of strict operationalisation of the Betting, Lotteries and Gaming Act and bolster control and monitoring of the industry.

The industry is rapidly evolving thanks to technological advancements and changing consumer preferences. A significant change is the rise of online gambling, which offers new opportunities and challenges for the sector. It allows one to engage in various forms of gambling from their home, increasing accessibility to vulnerable individuals such as minors and people with addiction issues. 

As at June last year, Kenya Revenue of Authority data show, more than 170 gambling companies were licensed to operate in Kenya with the sector projected to have a gross turnover of Sh50 billion.

Gambling is a widely popular and multi-faceted industry employing millions of people and generating billions of dollars in revenue worldwide. Its wide range of activities includes sports betting, casino games, lottery and online gambling. While gambling remains a favourite pastime for many, there are questions about its impact and ethical concerns.

Its controversies aside, first, gambling is a source of entertainment and relaxation for millions of people. For example, visiting a casino or placing a bet on a favourite sports team can be a thrilling experience and an opportunity to unwind. It provides an avenue for socialisation and friendships.

Has its downside

Secondly, it creates employment opportunities and contributes to economic development. It thus generates a significant revenue stream for governments in terms of taxes and licences while creating business opportunities. Thirdly, gambling is a potential tool for charitable giving. Many gambling firms have charity programmes and donate to community-based organisations.

However, gambling also has its downside, which is often overlooked. One of its greatest drawbacks is its potential to lead to addiction, which is harmful and expensive to individuals and society.

Addiction may lead to severe consequences including financial ruin, social isolation, high truancy in schools and breakdown in relationships. 

Secondly, it can be a breeding ground for criminal activities such as money laundering, fraud and corruption. For instance, criminal syndicates often use casinos and other gambling establishments as fronts for their illegal activities. Moreover, consumers may engage in illegal activities such as theft or embezzlement to finance their addiction.

Thirdly, it can provoke ethical concerns—especially its impact on vulnerable individuals such as minors, the elderly, low-income earners and addicts.

Regulation will help the industry to operate ethically and also protect consumer interests. 

Mr Ombane is an economist. [email protected].