The Consumer Federation of Kenya (Cofek) has won a fight to deny betting companies the use of online features that quickly disseminate information with faster reach to potential gamblers.
However, Milestone Games Limited, has filed an appeal before the Court of Appeal challenging a High Court decision that upheld a consent order directing all gaming operators to cease using the speed dial feature on internet browsers.
This is after an application challenging the High Court directive for the removal of speed dial features in online gaming advertisements was dismissed.
Cofek had last year filed a petition arguing that the feature exposed consumers, especially children to harmful practices through the advertisements.
In a notice of appeal filed at the Court of Appeal, the firm expressed its dissatisfaction with Justice Lawrence Mugambi’s ruling on October 4, 2024.
The ruling declined to set aside a consent order executed on January 9, 2024, by the Consumer Federation of Kenya (Cofek), Betting Control and Licensing Board (BCLB), and Communications Authority of Kenya (CA).
“The Appellant herein, Milestone Games Limited, being dissatisfied with the ruling of Honourable Justice Lawrence Mugambi given at Nairobi on October 4, 2024, in Nairobi High Court Constitutional Petition No. E307 of 2023 intends to appeal to the Court of Appeal against the whole ruling,” states the notice.
They said the speed dial feature disregarded an ongoing campaign by the Communications Authority of Kenya, which focuses on child online protection.
Cofek claimed that the Betting Control and Licensing Board and other parties failed to regulate and ignored the regulation of advertisement, hence posing a risk to consumers, especially children and youth. Justice Lawrence Mugambi in January last year directed the Betting Control and Licencing Board to ensure all gaming operators cease the use of the speed dial feature forthwith. The judge said the consent shall serve as an order of the court.
The board then issued a warning to all gaming operators directing that they abide by the court ruling or risk deregistration.
However, Milestone Games Limited, one of the gaming operators moved to court to challenge that directive while also seeking to be enjoined in the matter.
It alleged that the motive behind Cofek’s petition was the advancement of the competitor’s interests and not the protection of children. It argued that the orders would adversely affect its interests in the gaming business.
Milestone Games said enforcement of Justice Mugambi’s directive will force it to breach its existing agreement with Opera Mini.
“Correspondingly, barring the speed dial feature will stifle innovation in the technology and betting industry,” Limited Games said.
In his ruling delivered on Monday, October 4, 2024, he dismissed Milestone Games’ application to stay the execution of his directive.
He also declined to have the appellant enjoined in the case saying it was a stranger to the matter. “The applicant is not a party to these proceedings and has no role in the consent order. It has not proved a legal stake to entitle it to participate in the proceedings and thus lacks capacity to set aside the order,” Mugambi ruled.
“The upshot is that the application lacks merit and is hereby dismissed in its entirety with costs.”
Cofek had sued saying the betting board and other parties failed to regulate and ignored the regulation of advertisement hence posing a risk to consumers, especially children and youth.
“That failure has led to the introduction, engagement and gaming of children and youths which has caused an addiction and other negative effects,” it said in its affidavits.
