Lucrative jackpots paid to gamers in Kenya have been flagged as a possible means for laundering proceeds of theft, drug deals and terror-related activity. The observation comes as Kenya heightens its scrutiny of the gambling industry.
A risk review report launched by Interior Cabinet Secretary Fred Matiang’i noted that mega jackpots by betting companies posed a money-laundering risk, with betting firm owners easily able to launder billions of shillings through their companies.
Matiang’i feels the risk is high, too, as his inspection of potential money-laundering perils may increase the clamour for greater disclosures on cash sources used for jackpot payouts.
Current jackpots in Kenya have hit an average high of SH250m ($2.1m) amid a recent betting craze, a move in apparent defiance of recent government measures to clamp down on excessive betting through increased taxes for both bettors and operators.