Kenya is inching closer to having the first-ever National Lottery following the publication of two Bills and a policy which are the precursors towards its launch.
The Presidential Taskforce on the establishment of the Lottery is currently collecting views from the public on the draft National Lottery Bill (2023) and Gambling Control Bill (2023).
The nationwide exercise is set to be concluded on April 21 before it is taken back to Parliament for adoption.
So what exactly is a National Lottery and how does it operate?
Despite the existence of other public lotteries such as the Kenya Charity Sweepstake and Lotto, Kenya does not have a National Lottery currently.
In 2019, the country made an unsuccessful attempt to establish it through the proposed Gaming Bill.
The Gaming Bill had been envisioned to replace the Betting, Lotteries and Gaming Act.
A national lottery is a type of game that depends on luck for the player to win.
“It is operated by the government or an operator permitted by the government that allows the public to purchase tickets for a chance to win a large sum of money or other prizes. The proceeds from ticket sales are often used to support various good causes,” National taskforce steering committee chair Narendra Raval says.
The main purpose of a national lottery is to support good causes and improve the quality of life of citizens through identified good causes.
Through the proceeds of ticket sales and taxation of winnings, the government generates revenue to support various public initiatives or programs.
How is it operated?
A national lottery is operated by the government or an operator permitted by the government.
The government or the operator shall come up with the following essentials to run a competitive national lottery-game design, ticket sales and prize payouts.
It will also come up with drawings, regulations and oversight, use of proceeds and transparency and accountability of Lottery proceeds.
Participation in the lottery is open to persons above 18 years of age only including foreigners.
Who decides on the good causes and what are they?
The good causes shall be established by an entity provided for under the relevant law.
In the event a participant in the national lottery does not win during a draw, they can take comfort in the knowledge that the cost of their lottery ticket (s) will go towards supporting good courses.
They include:
Supporting homes for orphans, the elderly and other vulnerable persons; support for community health, mental health, and diseases research programs; support for the provision of assistive devices for persons with disability; drilling of boreholes in arid and semi-arid areas; poverty alleviation programs, educational support and improvement programs, and others that will be suggested by the public.
Economic Empowerment Initiatives such as initiation of income-generating activities; value addition to raw materials for MSMEs; business and enterprise training initiatives; and enhancing the competitive edge of small-scale producers and manufacturers.
Excellence in Sports Initiatives in the Community including support for early nurturing of upcoming sports talent, the development of world-class sports facilities and revamping of already existing ones, and the increased participation of Kenyans in new sports as training of coaches.
Support for Arts and Culture Initiatives including youth drama and music festivals, talent development and mentorship programs and facilities such as equipment and training on artistic self-expression through digital formats and forums.
Heritage Initiatives such as the preservation of museums and monuments, identification of new heritage sites, amplification of cultural practices, re-enactments and digitization of history, popular folklore, songs, dances, and stories.
Signature Transformation Projects with national impacts such as the building of dams; bridges, railways connecting counties, and trams in urban areas.
Increasing Emergency Response Capacity to mitigate disasters such as floods, drought, fires, locust invasion, and pandemics.
How often are draws conducted in a National Lottery?
The operator shall determine the frequency of draws after conducting a study. The draws are usually as frequent as possible to enable as many people to benefit from their participation.
Are the winnings of a National Lottery Taxed? Yes. The winnings are taxed by the government in accordance with the law.
Will the National Lottery replace other existing Betting Games and Public Lotteries? No. The other existing betting games and public lotteries shall still continue to operate under the relevant law.
Which other Countries have a National Lottery?
South Africa, Ghana, Nigeria, India, Singapore, Finland, and the UK are some of the countries that are currently running it.