Kenyan competition authority fines Betway

BlueJay Ltd t/a Betway has been sanctioned by the Competition Authority of Kenya (CAK) for failing to apply for approval of a merger with Maltese firm GM Gaming in 2015, CAK’s 2017/2018 annual report reveals.

According to CAK, online betting firm Betway first sold a majority stake to GM Gaming in September 2015, which later disposed of the controlling shares to Rosehall Global, previously listed as a Virgin Islands BVI firm, again without receiving approvals.

Under Kenya’s Competition Act any business that acquires shares or assets of another company that results in a change of control must seek approval from the regulator.

“If the combined turnover of the two parties is valued at over Sh1 billion, for the year preceding the notification to the agency, the transaction is analysed for its possible impact on competition and public interest concerns,” The Nation reports.

CAK said it had initiated its own investigation into the conduct of Bluejay (Betway) pursuant to Section 42(2) of the Act that prohibits implementing mergers without prior approval of the authority.

“It was established that Bluejay were in contravention of Section 42(2) and (3) of the Act by implementing two transactions without prior approval.”

CAK imposed an administrative financial penalty of  Sh15 million [GBP 114,621] on Betway.

The authority could have imposed a maximum prison term of five years and/or a maximum fine of Sh10 million or a penalty of 10 percent of the company’s previous year’s annual turnover.

Related and similar