MozzartBet Faces License Revocation After Court Upholds Money Laundering Charges

Serbian-owned gambling firm found guilty of handling proceeds of crime in landmark Court of Appeal ruling

MozzartBet Kenya Limited is staring at the imminent revocation of its operating license following a damning Court of Appeal ruling that found the Serbian-owned gambling firm guilty of money laundering, fraud, and handling proceeds of crime.

In a unanimous decision delivered on May 23, 2025, appellate court judges Francis Toiyott, Fred Ochieng, and Aggrey Muchelule upheld a High Court ruling ordering the seizure and forfeiture of Sh256 million from the betting company, declaring the funds as proceeds of crime.

The ruling has prompted the Betting Control and Licensing Board (BCLB) to form a multi-agency team comprising representatives from the Interior Ministry, Attorney-General’s Office, Communications Authority, Kenya Revenue Authority, and other key regulators to discontinue MozzartBet’s operations in Kenya.

The Money Laundering Scheme

The court found that MozzartBet was complicit in a sophisticated money laundering operation involving Kimaco Connections Limited, which was purportedly a software developer.

The betting firm had claimed the disputed Sh256 million was legitimate payment to Kimaco for betting software delivery.

However, the appellate judges dismissed this defense, ruling that Kimaco was nothing more than a shell company created specifically to launder money under the guise of software supply and ICT services.

“We hold that there was sufficient evidence, on the statutory threshold of balance of probabilities, to implicate MozzartBet as well, and it cannot benefit from protection of a third party,” the judges ruled.

The court noted that evidence revealed Kimaco received payments under suspicious circumstances, made payments in similar circumstances, and concealed its business from tax authorities.

The judges invoked the popular saying: “If it walks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.”

Key Players and Financial Flows

MozzartBet Kenya Limited is owned by Serbian national Sasa Krneta, who also serves as the company’s Country Manager and chairs the Association of Gaming Operators Kenya (AGOK), making him one of East Africa’s most influential gambling figures.

The court established that Branimir Melentijevic, a shareholder of MozzartBet Africa—the majority shareholder of the Kenyan firm—received funds that originated from the questioned payments.

Evidence showed payments totaling USD 69,964.30 and USD 34,599.00 were made through the network, allegedly for software services.

The Assets Recovery Authority (ARA) had initially told the High Court that all funds held in MozzartBet’s account were proceeds of crime, leading to the forfeiture order that has now been upheld on appeal.

Regulatory Response and Oversight

The case has highlighted the serious nature of transnational organized crime in Kenya’s gambling sector.

Money laundering allows criminals to exploit gaps in international cooperation and regulatory frameworks to move illicit proceeds across borders, often linked to terrorism financing and other underworld activities.

“Those are very serious crimes. All the necessary measures will be enforced,” a source familiar with the proceedings told this publication on condition of anonymity.

BCLB, which operates under the direct supervision of State House through Head of Public Service Felix Koskei, has faced criticism for alleged laxity in enforcing appropriate legal measures.

The board was placed under the Executive Office of the President through Executive Order No. 2 issued on November 2, 2023.

Business Continuity Questions

Despite the serious court findings, MozzartBet Kenya Limited has continued operations unabated in the weeks following the guilty verdict, raising questions about regulatory enforcement.

The company’s continued operations have drawn criticism from industry insiders who argue that swift action should have been taken immediately after the court ruling.

BCLB is headed by Chief Executive Officer Peter Mbugi and Board Chairperson Dr. Jane Mwikali Makau, both of whom now face pressure to act decisively on the court’s findings.

Industry Impact

The MozzartBet case represents a significant development in Kenya’s efforts to clean up its gambling sector, which has faced scrutiny over taxation, licensing, and financial compliance issues.

The revocation of a major operator’s license would send a strong signal about the government’s commitment to combating financial crimes in the betting industry.

The multi-agency approach to reviewing MozzartBet’s case also suggests a broader regulatory overhaul may be underway, with authorities seeking to tighten oversight of betting and gaming operators across the country.

As the regulatory net tightens, other gambling firms operating in Kenya may face increased scrutiny of their financial operations and compliance with anti-money laundering regulations.