{"count":1608389,"next":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=138572","previous":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=138570","results":[{"id":1402121,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402121/?format=json","text_counter":190,"type":"heading","speaker_name":"","speaker_title":"","speaker":null,"content":"BILL"},{"id":1402122,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402122/?format=json","text_counter":191,"type":"scene","speaker_name":"","speaker_title":"","speaker":null,"content":"Second Reading"},{"id":1402123,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402123/?format=json","text_counter":192,"type":"heading","speaker_name":"","speaker_title":"","speaker":null,"content":"THE GAMBLING CONTROL BILL (NATIONAL ASSEMBLY BILLS NO.70 OF 2023)"},{"id":1402124,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402124/?format=json","text_counter":193,"type":"speech","speaker_name":"Hon. Kingi","speaker_title":"The Speaker","speaker":null,"content":" The Senate Majority Leader, please, proceed."},{"id":1402125,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402125/?format=json","text_counter":194,"type":"speech","speaker_name":"Sen. Cheruiyot","speaker_title":"The Senate Majority Leader","speaker":{"id":13165,"legal_name":"Aaron Kipkirui Cheruiyot","slug":"aaron-cheruiyot"},"content":" Mr. Speaker, Sir, I beg to move that the Gambling Control Bill, (National Assembly Bills No.70 of 2023), be now read a Second Time. Mr. Speaker, Sir, the Bill was published in the Supplementary Kenya Gazette No.212 of 2023. It was considered by our colleagues in the National Assembly and passed on the 6th December, 2023. Thereafter, the Bill was referred here to the Senate for consideration. This Bill seeks to provide for the regulation of betting casinos and other forms of gambling, authorization of price competitions, and public lotteries, for the establishment of a gambling regulatory authority of Kenya for the imposition of tax on betting and other forms of gambling. Mr. Speaker, Sir, you are very much aware that gambling is here with us. We must learn to live with it because, unfortunately, this is an industry which - to the best of my knowledge - we are still struggling as a country. The good thing, though, is that it is not a challenge that is unique to us as Kenya alone. The world over, control of casinos and gambling activities poses a challenge to almost all administrations. Mr. Speaker, Sir, you know that many sporting teams have betting companies as their shirt sponsors. In the English Premier League, they have given themselves and all teams three seasons in total to remove betting companies as their shirt sponsors. Therefore, it points out to the fact that this is a global concern. We have to learn how to live with this industry and adjust ourselves towards this wind. Unfortunately, we have not done so well as a country. About three to five years ago, Kenya began the imposition of taxes on betting. At that time, the thinking was that we could use taxes in 2018 as a deterrence to keep young people from either betting or being addicted to it altogether. What a terrible mistake. I do not understand betting that much because I do not gamble. I am just a good sportsman who knows that winning and losing depends on how you are prepared for the day. Sometimes it falls into your favour, sometimes it gets away. On a day like today, I wish the good old Arsenal Football Club can beat Bayern Munich. If you speak to other people, they will tell you that they have already placed a bet and they know what needs to happen. The minute you place a bet in Kenya - like Sen. Sifuna is now telling me that he has already placed a bet - you are deducted part of that money. If you win, there will also be a deduction. This tells you that our thinking as a country is that we can use tax as a deterrent, so that many young people do not engage themselves. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."},{"id":1402126,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402126/?format=json","text_counter":195,"type":"speech","speaker_name":"Sen. Cheruiyot","speaker_title":"The Senate Majority Leader","speaker":{"id":13165,"legal_name":"Aaron Kipkirui Cheruiyot","slug":"aaron-cheruiyot"},"content":"What have our young people and the people that are engaged in betting done? They have moved on from betting platforms that are available and can be controlled here in Kenya, and are now betting online using companies whose jurisdiction remains unknown, even globally. I know many young people - and I say this at a very difficult time because I have a young man who was a good friend and a supporter and is lying in the morgue, as I speak. He used to work at an M-Pesa shop. He went to some betting site; I am told it is called Aviator. When I was told the story, I realized that I have grown old. I sit amongst people who are older than me, and I have always imagined that I am still young. However, the reality is dawning on me that there are many things that I do not know; things that could not be said of a few years back. I hear there is this betting platform and when they placed their bet there, they lost over Kshs120,000, which is money that would otherwise be referred to as a float of the shop they were running. Since they feared the owner of the shop, they decided to take their own lives. The story is replicated across the country. There are many offline or online betting sites that are available and are being used by young people. When you bet on M-Pesa or a locally regulated platform, the tax revenue people are able to keep track of what you are doing and, therefore, are able to recover this tax. However, many of these young people, as I have pointed out, are now betting online and paying using either their cards or other forms of payment. They are using channels that are unknown to the Government. Therefore, even our regulation of the same is limited. As I have pointed out, this is not a challenge unique to Kenya. These gaming sites are so advanced in their gaming machines, such that even if you were to block their IP address, they have the ability to generate a new one within seconds. Countries that are far more advanced than us technologically have not been able to successfully regulate it. Therefore, this is an attempt to shift our thinking to know that it is almost impossible to deter them. Betting is a matter of personal choice. People decide to either bet or not to bet. Therefore, you must make ways of living and surviving with this phenomena that is here with us, so that you are in a position and are able to either control, manage or guide it in a way that provides a good platform for you as an administration or as a Government to regulate this activity. Mr. Speaker, Sir, this Bill is providing us with this framework because of the challenge that I have just explained; issues of tax evasion and underage gambling. Any person today with access to a computer can actually participate in gambling activities. Some of these sites are online and there is no regulation on age or who can access these sites. Despite the fact that there are very enhanced monitoring mechanisms for these gaming initiatives, it is crucial at this time to create a safe, fair and socially responsible gaming environment. This is basically an admission like the rest of the world has had to do, that gambling is here with us to stay and that there are people who will gamble either way. Therefore, the best thing to do is for you to set up a fair and a good environment and regulate it properly, so that it is done in a manner that you can keep site, keep track and assist people if there are issues of addiction by placing responsibility. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."},{"id":1402127,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402127/?format=json","text_counter":196,"type":"speech","speaker_name":"Sen. Cheruiyot","speaker_title":"The Senate Majority Leader","speaker":{"id":13165,"legal_name":"Aaron Kipkirui Cheruiyot","slug":"aaron-cheruiyot"},"content":"I have taken time to quickly scan through the Report of the Committee on Labour and Social Welfare and the Chair is here, and he can correct me if I am wrong. I was hoping that we could actually impose certain social responsibilities on these gaming companies. By law in other jurisdictions that have understood this concept, a percentage of their revenue is purely dedicated to managing addictions. They are forced to go through your systems to check, for example, how much Sen. Osotsi makes and the particular amount he is spending on gambling. You are then flagged by the system. They are able to tell this particular individual is living dangerously in the gambling space. Therefore, they organize conferences for you and some training on their own budget. As a gambling company, that demand is placed on you. It is my sincere hope that perhaps even as we discuss this Bill, people can think about how to make better demands from these companies, so that we do not end up having many young people losing their opportunities. Mr. Speaker, Sir, I do not want to mention the names of the companies, so that I am not accused of using this premium platform that is Parliament of promoting the activities of one company against the others. However, when one of the most prominent companies that came out and made betting known across the country had difficulties here in Kenya, they went out and set up shop in Tanzania, just next door. Since Tanzania as a country managed this issue better than us, today that company does almost 10 times the revenue they used to do when they were here in Kenya despite the fact that Kenyans are known to have more disposable income than our colleagues in Tanzania. Secondly, they sponsor their local leagues in many sports. The team that they support participates in the African Champions League and reach the quarters and the semis on account of prudent use of these resources that have been generated. Therefore, based on my observations, as a country, we must make a decision and know how to live with this industry, rather than try to curtail it. If there is a lesson we have learnt in the last few years, it is that you cannot curtail the operations of this industry. You can only learn how to do it better. An idea is proposed in the Bill to establish clear guidelines for protecting consumers from exploitation and combating money laundering issues. Gambling companies and gaming casinos are avenues that have been used to launder money. It is important to regulate this environment. The creation of the Gambling Regulatory Authority (GRA) will provide oversight and enforcement, promoting a safer gambling environment. Additionally, the authorization of price competition and public lotteries will offer economic growth and entertainment opportunities. Further, the imposition of tax on betting and gambling activities will generate significant revenue for public and social services initiatives, ultimately benefiting the country. There has been an attempt to do this through the Sports Fund. Unfortunately, even after setting up the Sports Fund, 80 per cent of the fund was used to do other things that are not sporting related. I am impressed that in one of the Executive Orders of 2023, the President directed that the Sports Fund be wholly dedicated to developing sporting facilities. This is part of The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."},{"id":1402128,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402128/?format=json","text_counter":197,"type":"speech","speaker_name":"Sen. Cheruiyot","speaker_title":"The Senate Majority Leader","speaker":{"id":13165,"legal_name":"Aaron Kipkirui Cheruiyot","slug":"aaron-cheruiyot"},"content":"what is being used to expand the sporting arenas across the country. Therefore, I will quickly scan through the various clauses of the law. Part I of the Bill provides for the preliminary matters, which are interpretations of the terms being used. Parts II, III all the way to V provide for the various functions. They lay out the functions of the national Government in terms of policy and those of the county governments in regulating and controlling places like casinos. You know well that there are village casinos nowadays. Colleague Senators, you must be vigilant in your various counties. This is because people are setting up funny joints and no impressive videos are showing the activities that happen in such places. Those are the duties of our county governments. It is good that this is being provided. County governments are being reminded of their core responsibilities, where they regulate their operations and give local licensing for these casinos. Part IV of the Bill consists of clauses 26 to 27, which provide for the establishment of the authorities, their functions, operations, guidelines and how they will conduct the business. This is pretty much what we do when we set up any board, as we have done. Clauses 28 to 49 provide guidelines on licensing and permits. Clauses 50 to 57 provide for the control of the lotteries. Part VII of the Bill, clauses 64 to 66, provides the provisions on casino slot machines littered across the country. In the villages, these things are becoming a scene. In village centers at 4.00 p.m., you will find women and men trooping and sometimes dropping all their day's earnings into some funny box, hoping to strike sudden wealth. Most of the time, very little comes up of it. Part VIII of the Bill, clauses 67 to 80, provides for online gambling, including licensing control, payment of prices and remittance of winning, financial reporting and dispute resolution. This is one of the hardest, and I have explained why. This is because of the complexity of the online machines and engines that these people use. They can generate new IP addresses within minutes, and young people can access them. We lead a tech-savvy society. They can move quickly and resolve these issues. Part X of the Bill in Clause 87 provides the guidelines for advertising, where can you advertise and how you can do it, so that you do not expose them to young children. It is important to guide how this is done without curtailing the business activities. As I had pointed out, even as we try as a country to regulate and become difficult at these activities, the rest of the world moves ahead of us. They are taking advantage. Billions of money leave this country annually, funding other societies' social and prosperous activities because we have not done what this Bill asks us to do. We imagine we can curtail this industry. Part XII of the Bill, clauses 92 to 111 are provisions of the offences and the penalties for violating the various clauses of this Bill. Part XIII contains the miscellaneous provisions and translation. Mr. Speaker, Sir, allow me to read Clause 95. I found it fascinating. It states that- “A person who, being the owner or occupier of a licensed gambling premise or electronic site, who allows such premise to be used for other unlicensed activities The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."},{"id":1402129,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402129/?format=json","text_counter":198,"type":"speech","speaker_name":"Sen. Cheruiyot","speaker_title":"The Senate Majority Leader","speaker":{"id":13165,"legal_name":"Aaron Kipkirui Cheruiyot","slug":"aaron-cheruiyot"},"content":"commits an offense and shall be liable upon conviction to a fine not exceeding one million shillings or to imprisonment for a term not exceeding one year or both.\" I hope the Committee can move away from this. I have said times without number that, unfortunately, at the State Law Office or here in Parliament, people copy-paste certain sections of the law into Bills without reflection. It is an abuse of our legislative mandate as parliamentarians to pass such a law. As a legislator, you are aware of the money involved in gambling. If tomorrow I opened a casino on Ngong Road and I am minting millions illegally, the only fine the law can charge me is Kshs1 million. I will not pay for the licence; I will tell you to fine me daily. They make more than Kshs1 million a day. I hope that as our committees go through these Bills, they do not tick the boxes. I have said many times that many of these people do not reflect and internalize the laws we are passing. I hope that as a House we can rise above this and set a fine to make people aware that there are consequences if they engage in certain illegal activities. Some of these industries are worth billions. Therefore, when you tell a Russian mobster who has come and set up something here that the only thing you can fine them is Kshs1 million, they are excited and state that the fine amounts to Kshs365 million a year and they make far more than this. Therefore, I hope that we will vary the fine when we are at the Committee of the Whole Stage. Sen. Osotsi, you are good at drafting amendments. I hope you are taking notes and will help us, as a House, to do this better. With those many remarks, I want to hear the opinions of my colleagues. I also want to point out another area that has had challenges with drafting, where boards are being set up, and there is only one slot for a representative of the Council of Governors (CoG), when we have 47 counties. Committees of the House bring their report and are okay with it. I am not okay with that."},{"id":1402130,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1402130/?format=json","text_counter":199,"type":"scene","speaker_name":"","speaker_title":"","speaker":null,"content":"(Sen. Olekina spoke off record)"}]}