Published: 21.08.2019, 16:46
2 min read
The ongoing tussle between gambling operators and the Kenya Revenue Authority (KRA) isn’t only affecting the stakeholders. Betting enthusiasts and soccer fans are also caught up in the mix. The fans, together with bettors, seem to be losing their patience with the time the government is taking to clear betting operators.
At the weekend, the disgruntled sports fans registered their disappointment with the tax money over the delay in issuing new local licenses. The current predicament surrounding betting operators has forced Sportpesa to cancel all its Kenya’s sponsorship deals. Sponsorship termination by Sportpesa means that the Kenyan Premier League is about to kick off will lack a sponsor. The move equally makes the two clubs with the biggest fan base to launch the new season without any sponsorship plan.
The angered fans have floated the idea of going to the taxman headquarters for a defecation spree to register their frustration. Kenya Revenue Authority (KRA) has its head office in Nairobi at Times Towers building. Another beleaguered fan vowed to nail his manhood at the doorway of the taxman.
Kenya Betting Companies with Suspended Licenses
Sportpesa and Betin are the gambling giants in Kenya that their licenses were suspended on July 1, alongside other twenty-five betting firms. Attempts to return into business has been futile for most operators with the taxman insisting the payment of the debt worth millions of dollars first. The operators have even moved to court to compel the KRA to rescind the suspension orders. The court couldn’t offer an instant solution with the case slated for hearing on July 19.
Meanwhile, Sportpesa has resolved to grant its more than 450 local staff paid leaves as the firm struggle to fix the situation. The taxman has since cleared a few betting firms, including Betlion, Betika, and Odibets to continue operating.
The government made a proposal in the 2019 national budget that requires betting firms to begin withholding a tax of 20% from customers’ wins. Consequently, the state is contemplating imposing a 10% tax on every stake regardless if the bet is won or lost.
MozzartBet became the latest betting operator to renew the operational license after complying with KRA requirements. The authority has since restored the mobile money to allow customers to submit their stakes and receive their winnings. Meanwhile, several bettors are conducting their gambling operations with international firms where massive tax do not apply.
