The Betting Control and Licensing Board (BCLB) has issued an order stating that all gaming companies in Kenya must provide audits of all community investments and sponsorship deals for review.
The Chief Executive Officer (CEO) of the Betting Control and Licensing Board (BCLB); Peter Mbugi wrote to all gaming or betting operators in Kenya to reveal their activities, the amounts spent, as well as the beneficiaries of their Corporate Social Responsibility (CSR) expenditure.
According to the Chief Executive Officer (CEO); Peter Mbugi although the betting companies are not compelled to spend any specific amounts on their Corporate Social Responsibility (CSR) activities, they will be required to provide records of exactly how much they have given back to the community or society.
He added that a majority of the betting companies have either made claims that their marketing expenditure is Corporate Social Responsibility (CSR) or made promises to support football clubs in Kenya alongside community projects but end up not fulfilling said promises.
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It is believed that betting companies operating in Kenya have so far, been able to make really impressive profits. Quite recently for example, it was revealed that in the first five (5) years of SportPesa operating in Kenya it achieved a net profit of 12.9 billion Kenyan Shillings for its owners. This is significantly greater than what it has spent in Corporate Social Responsibility (CSR).
The Chief Executive Officer (CEO) of the Betting Control and Licensing Board (BCLB); Peter Mbugi stated that, “The board wishes to inform you to submit report on all CSR activities conducted during the licensing period. This should detail the name of activities; amounts spent and evidence of the same should be attached to the report.”
As it stands, the betting laws in Kenya do not specify the exact amounts that betting companies operating in Kenya should spend on the Corporate Social Responsibility (CSR) activities unless during instances involving public lotteries that are aimed at raising funds for distress relief, public welfare and social services.
The Betting Control and Licensing Board (BCLB) has been authorized to instruct all public lotteries to spend not lower than twenty five (25) percent of the total earnings on the reason or reasons for the public lotteries being promoted.
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The rest of the betting companies donate to a number of charities and sponsor sport clubs as part of their Corporate Social Responsibility (CSR) activities to give back to their communities.
The Chief Executive Officer (CEO) of the Betting Control and Licensing Board (BCLB); Peter Mbugi made it known that betting companies just like other businesses, are obligated to apart from their tax obligations to Kenya, spend part of their profits in the communities that they operate in.
A number of betting companies have so far been accused of deceiving communities with sponsorship deals and then failing to have any follow up. Other betting companies do not carry out any community work at all.
It is also expected that the audit on betting companies and their sponsorship deals will expose internet based gambling or betting companies that are not currently licensed to run operations in Kenya and do not pay taxes or invest in communities in the country.
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Mr. Peter Mbugi stated that whenever such companies are discovered, the Betting Control and Licensing Board (BCLB) works with the Communications Authority of Kenya (CA) to ensure that the websites are taken down.
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