High Court holds fate of Sh50million betting licences in balance

The High Court is set to determine the fate of Kenya’s sharply increased gambling licence fees after operators challenged new regulations that have raised the cost of doing business and could force some companies out of the market.

Justice William Musyoka has already issued a stay order blocking implementation of key provisions of the Gambling Control (Licensing) Regulations, 2026, pending determination of a legal challenge filed by lawyer Thomas Buckley Opar Owuor and Ken Brance.

Under the disputed framework, online bookmakers and online casinos face a licence fee of Sh50 million, while casino operators face a fee of Sh120 million, compared with the previous requirements of Sh200,000 and Sh7 million respectively.

The applicants describe some of the increases as unprecedented, with fees rising by between 200 per cent and 49,900 per cent.

A land-based bookmaker’s renewal fee, for instance, has reportedly jumped from Sh5,000 to Sh2.5 million.

The regulations also introduce a six per cent fee on gambling advertising budgets and new minimum capital requirements.

The legal challenge goes beyond the size of the fees. The applicants argue that the government failed to conduct adequate public participation before introducing the final requirements.

David Sarinke, a partner at McKay Advocates, said the challenge raises a fundamental constitutional question because the final requirements were allegedly higher than those presented during public consultation.

“The grounding is on a very key constitutional principle of public participation,” Sarinke said, arguing that aspects added after publication were not subjected to adequate public participation.

The petitioners further question whether the regulations were signed by the legally authorised Cabinet Secretary. The rules were signed by Prime Cabinet Secretary Musalia Mudavadi on June 29 and came into effect on July 3, shortly before the High Court intervened.

The applicants have warned that the new costs could trigger closures among Kenya’s approximately 188 licensed gambling operators, resulting in job losses, reduced investment and lower tax revenues.

Owuor warned of “redundancy and loss of livelihoods for thousands of Kenyan employees and their dependents.”

The court’s stay also affects provisions covering annual operating licence fees for casinos, bookmakers, lotteries, online bookmakers, online lotteries, online casinos, pool betting schemes and totalisators.

It further suspends provisions on minimum gambling capital, the six per cent advertising fee and rules making licence fees non-refundable and non-pro-rata.

The new regulations form part of the wider Gambling Control Act, 2025, which replaced Kenya’s decades-old gambling framework and transferred regulatory oversight from the Betting Control and Licensing Board to the newly established Gambling Regulatory Authority.

But the legal challenge has created uncertainty just weeks into the new regime.

The applicants have 14 days to file their substantive judicial review motion, after which the regulator, government and interested parties, including the Association of Gaming Operators Kenya and Safaricom, will have an opportunity to respond. The case is scheduled for mention on September 21, 2026, when the High Court will give further directions.