Gambling firm appeals against order banning use of speed dial features

A betting firm, Milestone Games Limited, has filed an appeal before the Court of Appeal challenging a High Court decision that upheld a consent order directing all gaming operators to cease using the speed dial feature on internet browsers.

In a notice of appeal filed at the Court of Appeal, the firm expressed its dissatisfaction with Justice Lawrence Mugambi's ruling on October 4, 2024.

The ruling declined to set aside a consent order executed on January 9, 2024, by the Consumer Federation of Kenya (Cofek), Betting Control and Licensing Board (BCLB), and Communications Authority of Kenya (CA).

"The Appellant herein, Milestone Games Limited, being dissatisfied with the ruling of Honourable Justice Lawrence Mugambi given at Nairobi on October 4, 2024, in Nairobi High Court Constitutional Petition No. E307 of 2023 intends to appeal to the Court of Appeal against the whole ruling," states the notice.

Milestone Games' decision to appeal follows Judge Mugambi’s ruling last month, which also dismissed the firm's request to be enjoined as the fifth interested party in the lawsuit filed by Cofek.

The lawsuit challenges the introduction of the 'speed dial' feature used by betting companies to promote gambling, lottery, and gaming activities.

The speed dial feature, available on several internet browsers, displays visual thumbnails of frequently visited websites. By clicking on these thumbnails, users are directed to the respective websites, including those of betting companies.

In his ruling, Justice Mugambi dismissed Milestone Games' application to vary the consent order between Cofek, BCLB, and CA, which directed all gaming operators to cease the use of the speed dial feature on major internet browsers, particularly those offered by Opera Mini and Google  

According to the judge, Milestone Games was not a party to the proceedings and had no legal standing to challenge the consent order. Justice Mugambi emphasised that Milestone Games had failed to prove a legal stake in the case and could not set aside the consent order.

“The Applicant (Milestone Games Limited) is not a party in these proceedings and has no role in the consent order. The proposed fifth interested party has not proved a legal stake to entitle it to participate in the proceedings and cannot thus set aside the consent order. It is a stranger to the dispute. Its application to set aside the consent lacks merit,” Justice Mugambi ruled.

"The upshot is that the application dated January 18, 2024, by the applicant, is hereby dismissed in its entirety with costs," the judge added.

The consent order, which was adopted by the court on January 9, 2024, was the result of an agreement between Cofek, BCLB, and CA. The order specifically directs that all gaming operators cease the use of the speed dial feature.

The gaming firm wanted the orders varied contending that it has massively invested in the business in terms of monetary and human resources.

Milestone further contended that the order in place had adverse effects on its business, as it had executed several contracts, one of which was with Opera Software Ireland Ltd, the operator of the mobile browser involved in the lawsuit filed by Cofek.

Cofek’s petition argued that the speed dial feature exposes consumers, particularly children, to harmful gambling advertisements. The federation claimed that the feature facilitates easy access to gambling sites, which poses significant risks, especially to minors.

Cofek’s application, filed by lawyer Lydia Kemunto, accused BCLB, CA, and the Attorney General’s Office of neglecting their regulatory duties and allowing betting companies to exploit the speed dial feature.

The petitioner argued that these failures have resulted in invasive, uncensored, and predatory advertising that is harmful to the public, particularly young people.

“The respondents individually and collectively are mandated to regulate the internet and betting, but unfortunately, they have either neglected or ignored these duties, allowing unlimited, invasive, and uncensored predatory advertisements,” part of the petition reads.

The federation further claims that the widespread use of the speed dial feature disregards the ongoing child online protection campaign by the Communications Authority of Kenya.

Cofek also alleges that the failure to regulate gambling advertisements has contributed to the rising number of children and youth engaging in gambling activities, which has led to addiction and other negative effects.

“The failure has led to the introduction and engagement of children and youth in gambling, causing addiction and other harmful effects,” the petition adds.

Cofek expressed disappointment with the respondents for failing to take action against the illegal use of the speed dial feature. The federation argues that the lack of regulation continues to pose a great risk to minors and vulnerable individuals, who are disproportionately affected by the negative consequences of gambling.