BCLB Raises Concerns Over Illegal Gambling and Funding Shortages
The Betting Control and Licensing Board (BCLB) has raised alarms regarding the escalating issue of illegal gambling, both online and land-based. The board stressed the urgent need for increased government funding to effectively manage its regulatory responsibilities.
Financial Constraints and Budgetary Challenges
In a presentation to the National Assembly Departmental Committee on Administration and Internal Security, BCLB Director Peter Mbugi highlighted that “inadequate budgetary allocation” is a significant obstacle preventing the board from fulfilling its duties effectively.
The total budgetary allocation for the board in the 2023-24 financial year was Sh109.6 million, a figure significantly lower than the government tax revenues from gambling.
Predominance of Online Gambling
Mbugi informed the committee that 80% of gambling activity in Kenya is online, similar to trends in many other countries.
He emphasized the necessity of technological solutions, stating, “Given the scenario, deployment of adequate technology is the only sure way to adequately monitor and effectively regulate the industry.”
Outdated Legal Framework
One of the major challenges the BCLB faces in combating illegal gambling is the outdated legal framework.
Mbugi noted that “The enabling law was enacted in 1966. It is not deterrent enough.” The current laws are insufficient to address the modern landscape of gambling, particularly with the rise of online platforms.
Disparity Between Revenue and Funding
Mbugi lamented the stark contrast between the board’s funding and the tax revenues generated from gambling.
While the board received Sh109.6 million in the previous year, the government collected Sh24.4 billion in gambling taxes.
The previous year’s allocation was Sh98 million against Sh24 billion in tax collections.
The revenue generated by the board for the fiscal years 2022-23 and 2023-24 was Sh173 million and Sh256 million, respectively.
Additional Operational Challenges
Beyond financial constraints, the BCLB faces issues such as inadequate staffing, insufficient training, and lack of necessary tools and equipment.
These barriers further hinder the board’s ability to effectively regulate the gambling industry.
Societal Impact of Gambling
Mbugi also highlighted the changing role of gambling in society, noting that it has shifted from a leisure activity to a source of livelihood for many due to unemployment and poverty.
This shift underscores the need for robust regulatory frameworks and adequate funding to address the complexities of modern gambling.
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