A comprehensive guide to Kenya's evolving regulatory landscape for cryptocurrency payments in betting — what operators need to know and what users should watch for.
Understanding Kenya's crypto-betting landscape in 2025 starts with three key acronyms: BCLB, GRA, and VASP. Each represents a distinct regulatory pillar that shapes how cryptocurrency payments in betting are governed.
The BCLB was Kenya's gambling regulator under the Betting, Lotteries and Gaming Act (Cap. 131), a law originally enacted in 1966.[reference:0] The BCLB issued various licenses including Bookmaker's, Lottery, Gaming, and Public Gaming licenses.[reference:1] In 2025, the BCLB was replaced by the Gambling Regulatory Authority (GRA) following the enactment of the Gambling Control Act.[reference:2]
The GRA is the successor to the BCLB, established by the Gambling Control Act, 2025 (Act No. 14 of 2025), which was assented to on 7 August 2025 and came into force on 26 August 2025.[reference:3][reference:4] The GRA now oversees all gambling activities regulated under the Act, including online gambling and crypto-related betting operations.[reference:5]
The VASP Act, 2025 (Act No. 20 of 2025) was signed into law on 15 October 2025 and came into force on 4 November 2025.[reference:6][reference:7] It provides Kenya's first dedicated legal framework for virtual assets, requiring all crypto service providers — including betting platforms handling crypto — to obtain a VASP license.[reference:8]
A crypto-betting operator in Kenya must now secure both a gambling license from the GRA and a VASP license under the VASP Act.[reference:9] This dual-licensing regime treats crypto-betting as two distinct businesses fused into one, each with its own compliance requirements, fees, and regulatory oversight.[reference:10]
The era of unregulated crypto-betting in Kenya is over. The dual-licensing framework creates a high-compliance, high-cost environment that favors well-funded, established operators over startups.[reference:11]
Three major legislative acts transformed Kenya's betting and crypto landscape in 2025. Together, they create the legal foundation for cryptocurrency payments in betting.
This Act repealed the Betting, Lotteries and Gaming Act (Cap. 131) and established the Gambling Regulatory Authority (GRA) as the successor to the BCLB.[reference:12][reference:13] Key provisions include:
This Act introduced Kenya's first dedicated framework for virtual assets.[reference:19] Under the new framework:
This Act introduced significant tax changes for betting and crypto transactions, effective 1 July 2025:[reference:24]
Tax and fee structures are subject to change. The Finance Bill 2026, for example, proposes to reintroduce a 20% withholding tax on gambling winnings, reversing the Finance Act 2025's removal of that levy.[reference:28] Always verify current rates with official sources such as the Kenya Revenue Authority (KRA).
Operating a crypto-betting platform in Kenya requires meeting stringent legal, financial, and technical requirements across two separate licensing regimes.
Under the Gambling Control Act, applicants must:[reference:29]
Under the VASP Act, operators must:[reference:34]
Current fees and capital requirements include:[reference:39][reference:40]
The combined capital and security requirements create one of the highest barriers to entry in the region. The business model for a crypto-betting startup in Kenya is no longer viable; profitability must be built around the ability to deploy and tie up immense upfront capital.[reference:46]
Understanding the scale and scope of Kenya's betting industry provides context for the regulatory changes in 2025.
Kenya collected Sh96.7 billion ($725 million) in gambling taxes between the 2018/19 and 2024/25 financial years (up to February 2025).[reference:47]
As of September 2025, the BCLB had licensed 156 gambling operators across various categories.[reference:48] In July 2025, 99 operators were approved for the 2025/2026 financial year, including 1xBet, SportPesa, Betika, Melbet, Dafabet, and Mayfair Casino.[reference:49]
Over 50 betting firms were shut down in 2025 for operating without BCLB approval.[reference:50] The Communications Authority flagged an additional 106 gambling websites in the past year.[reference:51]
Kenya is considered one of Africa's most dynamic gaming markets, driven by widespread smartphone adoption, a strong betting culture, and increasing cryptocurrency usage.[reference:52]
BC.Game's entry into Kenya in 2025 — securing both a Public Gaming License and a Bookmakers Off-the-Course License via its local subsidiary Blockdance Africa Ltd. — demonstrates that major international crypto-betting operators see Kenya as a strategic market.[reference:53] However, the company's past controversies highlight the importance of regulatory compliance and reputation management.[reference:54]
The table below compares the key license types available for betting operators in Kenya under the 2025 framework.
| License Type | Issuing Authority | Typical Use Case | Key Requirement | Approx. Annual Fee |
|---|---|---|---|---|
| Bookmaker's License | GRA (formerly BCLB) | Sports betting operations | KES 100M security deposit | KES 500K–3M |
| Public Gaming License | GRA (formerly BCLB) | Online casino and gaming | KES 100M security deposit | KES 500K–3M |
| VASP License | CBK or CMA | Crypto payments, custody, exchange | Prudential standards, AML/KYC | Varies |
| Lottery License | GRA (formerly BCLB) | National and private lotteries | KES 100M security deposit | Varies |
| Prize Competition License | GRA (formerly BCLB) | Promotional prize competitions | Lower capital requirements | KES 400K–1M |
For users betting with cryptocurrency on Kenyan licensed platforms, several risks warrant careful attention.
The transition from BCLB to GRA is ongoing, with a moratorium on processing license applications for pending cases.[reference:55] The transition is scheduled to be completed by the end of February 2026.[reference:56] During this period, users should verify that any platform they use holds a valid license under the new GRA framework.
Cryptocurrency values can fluctuate dramatically. A deposit made in crypto may be worth significantly less by the time a user wishes to withdraw. This volatility is separate from any betting wins or losses.
Licensed operators must implement strict KYC procedures, including biometric identity verification.[reference:57] Users should expect to provide identification documents and may face delays if verification is incomplete.
Despite regulatory efforts, offshore websites offering unauthorised gambling products remain a challenge.[reference:58] Users should only bet on platforms that display a valid GRA license number and comply with advertising regulations.[reference:59]
Always verify a platform's license status directly with the Gambling Regulatory Authority (GRA) or through official channels. Do not rely solely on claims made on the platform's website.
Before depositing cryptocurrency on any betting platform operating in Kenya, work through this checklist.
Grace, a Nairobi-based professional, wants to try crypto betting on a licensed platform. She follows these steps:
Key takeaway: Grace's experience is smooth because she chose a licensed platform, completed verification, and used responsible gambling tools. She also understood that her crypto deposit's value could fluctuate before withdrawal.
This scenario is illustrative and does not constitute financial or legal advice.
Both operators and users make recurring errors in Kenya's evolving crypto-betting landscape. Here are the most frequent pitfalls.
Cryptocurrency betting involves significant risks. These include but are not limited to:
This article does not constitute financial, legal, or tax advice. It is an educational resource intended to help you understand Kenya's regulatory framework for cryptocurrency betting. Always consult qualified professionals for advice tailored to your personal circumstances. Never bet more than you can afford to lose.
For current license status, fees, and regulatory updates, always check official sources such as the Gambling Regulatory Authority (GRA), the Central Bank of Kenya (CBK), and the Kenya Revenue Authority (KRA) directly.
The Betting Control and Licensing Board (BCLB) was Kenya's primary gambling regulator under the Betting, Lotteries and Gaming Act. In 2025, the Gambling Control Act replaced the BCLB with the Gambling Regulatory Authority (GRA), which now oversees all gambling activities, including those involving cryptocurrency payments.[reference:71]
Yes. Operators accepting crypto payments must hold both a gambling license from the Gambling Regulatory Authority (formerly BCLB) and a Virtual Asset Service Provider (VASP) license under the VASP Act, 2025. This dual-licensing regime treats crypto-betting as two distinct regulated activities fused into one.[reference:72]
The Gambling Control Act, 2025 introduced a KES 100 million security deposit for online gambling and national lottery operators.[reference:73] In addition, VASP licensees must meet separate capital and solvency requirements set by the Virtual Asset Regulatory Authority (VARA), creating one of the highest barriers to entry in the region.[reference:74]
The Virtual Asset Service Providers Act, 2025 requires all crypto-betting operators to obtain a VASP license, implement stricter Know Your Customer (KYC) procedures, and comply with enhanced Anti-Money Laundering (AML) checks on all crypto transactions.[reference:75] The Central Bank of Kenya oversees stablecoin licensing while the Capital Markets Authority regulates exchanges and trading platforms.[reference:76]
As of July 2025, the Finance Act 2025 applies a 5% excise duty on customer deposits (replacing the previous 15% on amounts staked).[reference:77] Operators must remit this tax within 24 hours of daily transactions.[reference:78] Virtual asset service providers also pay a 10% excise duty on transaction fees.[reference:79] Tax rules are subject to change, so always verify current rates with official sources such as the Kenya Revenue Authority.
Licensed platforms operating under the dual GRA and VASP framework are subject to regulatory oversight, including player protection measures, responsible gambling requirements, and AML compliance. However, crypto remains volatile and carries inherent risks. Users should always verify a platform's license status directly with the regulator and never bet more than they can afford to lose.
The Gambling Control Act, 2025 replaced the BCLB with the Gambling Regulatory Authority (GRA). A transitional period is in place, with processing of annual license applications suspended for pending cases.[reference:80] The transition is scheduled to be completed by the end of February 2026, after which all licenses will be issued and renewed under the GRA framework.[reference:81]
As of September 2025, the BCLB had licensed 156 gambling operators across various categories.[reference:82] In July 2025, the BCLB released an official list of 99 operators approved for the 2025/2026 financial year, including names like 1xBet, SportPesa, Betika, Melbet, Dafabet, and Mayfair Casino.[reference:83]