Reprieve for Kenyan betting firms as court removes ban on social media advertising

Kenyan betting firms received a slight let-up in recent days after the High Court quashed its proposed ban on outdoor advertising of gambling by the Betting Control and Licencing Board.
Justice John Mativo has set aside the directive, with the board declaring it illegal, irrational and unreasonable. Following a petition by Outdoor Advertising of Kenya opposing the recent rules, Justice Mativo stated that the purported regulations were adopted and affected in a manner that is not consistent with the Constitution.
On 30 April, Control Board Acting Director Liti Wambua sanctioned new gambling advertising laws, rolling out a blanket ban across both outdoor and social media advertising for gambling operators, combined with a ban on the use of celebrity endorsements of betting products.
Polemically as a Kenyan regulatory body, the Betting Control Board would gain the power to authorise all forms of operator advertising. Having developed the mandate, Wambua would aim to introduce Kenya’s new gambling advertising laws by 30 May.
One of the requirements that has been nullified is by giving the board power to approve any form of advertising for gambling – and that such an advertisement must contain a warning message about the consequence of gambling, its supposed addictiveness and must also constitute a third of the actual advertisement.
New advertising standards are set to prohibit the display of online adverts for gambling products and services that uses data on consumer online interests and browsing behaviour that may be targeted towards minors.
The guidelines will also extensively list unacceptable types of content, including certain types of animated characters, licensed characters that are likely to be of particular appeal to children, and references to youth culture including celebrity endorsements.
The thought of gambling companies being unable to use celebrities and sportspersons is somewhat of a stick in the mud, especially given the increasing pace of the affiliate market.
Without influencers with big followings promoting brands, gambling companies would be forced to change their approach to a more creative one, ensuring that they still attract the same number of customers, but without popular, media-friendly influencers. The recent respite from the board is somewhat of a relief for the industry.
Justice Mativo said: “I find that the impugned decision was adopted in a manner that was procedurally unfair. I find no difficulty in concluding that the applicant has demonstrated the existence of procedural impropriety in the manner in which the decision was arrived at.”
While objecting to the rules, lawyer, Nelson Havi has argued that some of its members have existing contracts and obligations to various betting companies, while still standing to suffer from irreparable loss. He further contended that Interior CS, Fred Matiangi, under whose docket the requirements were to be implemented has no authority under the Gaming Act.
Havi implored the court to find them unlawful on grounds that the respondents are keen to penalize a lawful activity.