EXPERTS KENYA 10 firms join the battle for betting billions 2 weeks ago Samuel Post Views: 103 Ten new betting firms have been licensed to operate in Kenya, highlighting the growth of the industry despite increased taxation meant to tame the gambling craze in the country. The entry of the new players raises the number of betting firms cleared to operate in the country by the Betting Licensing and Control Board (BCLB) in the current financial year that ends in June 2024 to 71. The growth of the industry has defied higher taxes meant to discourage the gambling craze, with Kenyans especially the unemployed youth seeing betting as an avenue for making money to pay daily bills rather than a past-time activity. Betting stakes are currently taxed at the rate of 12.5 percent in addition to the 20 percent withholding tax. The Treasury has attributed its recent decision to increase the excise tax on betting stakes from 7.5 percent to 12.5 percent to the need to discourage participation in gambling activities by Kenyans. “To discourage participation in these activities by Kenyans and especially school-going children, I propose to the National Assembly to increase the rate of excise duty on betting, gaming, prize competition and lotteries from the current rate of 7.5 percent to 12.5 percent,” – Treasury Cabinet Secretary Njuguna Ndung’u said. Besides the taxes on gamblers, betting firms are taxed on the gross gaming revenue — turnover minus winnings paid out — at a rate of 15 percent. They also pay corporate tax on profits at a rate of 30 percent. Excise tax on betting advertisements was from July 1 introduced at the rate of 15 percent in yet another push to make them costly and discourage them. The 10 new entrants angling for a share of Kenya’s betting billions are 44bet, Savvybet, Tigonbet, Chapbet, Betmo, Play2Net, Clarity Limited, Betkali and Ealotto. SportPesa and Betika are the two top players in the market. Kenyans placed a record Sh88.5 billion through online bets in the full year to June 2023. The KRA collected Sh6.64 billion in excise taxes from betting in the year ended June, an increase from the Sh5.1 billion raised in the 2021/22 year. Betting firms are required to compute betting taxes after midnight every day and remit the amounts to the KRA by 7am the following morning via pay bill numbers issued by the taxman. The remittances cover excise duty, calculated at the rate of 7.5 percent of the amount wagered by punters and withholding tax on winnings, charged at the rate of 20 percent. The Finance Act, of 2023 also made it compulsory for betting firms to remit excise duty on betting to the KRA within 24 hours upon the close of business day, as the State ups scrutiny on the firms. “Excise duty on betting and gaming, offered through a platform or other medium, shall be remitted to the Commissioner by a bookmaker within twenty-four hours from the closure of transactions of the day,” – says the Act that became law on July 1. Source: businessdailyafrica.com About Post Author Samuel I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. See author's posts SamuelI am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. Facebook Twitter LinkedIn Email Print Tags: Kenya, KRA, taxes Continue Reading Previous Methods to Recognise a Safe and Secure African Online CasinoNext Meet Slotegrator at SBC Summit Barcelona 2023 More Stories EXPERTS KENYA Digital wallets as an enabler for financial services in Africa 29 mins ago Szarlot BETTING KENYA Betting firms tax remittance hit Ksh 15B in FY2022/23 38 mins ago Szarlot EXPERTS NIGERIA Afreko Media Amplifies Its Betting Platform Portfolio With The Acquisition Of Gamblers.Africa 50 mins ago Szarlot EXPERTS KENYA Unlocking the power of mobile trading: A financial revolution in Kenya 22 hours ago Samuel EXPERTS SOUTH AFRICA Online gambling addiction is a pandemic in SA, sucking in children and adults 1 day ago Szarlot EXPERTS SOUTH AFRICA MultiChoice investors kiss R32 billion goodbye 1 day ago Samuel KENYA ONLINE Xprizo partners with African payments provider M-Pesa 3 days ago Samuel EXPERTS KENYA Flutterwave wants to invest $50 million in Kenya 4 days ago Samuel BETTING KENYA Exploring OdiBets: A Game-Changer In Kenyan Sports Betting 4 days ago Samuel EXPERTS HOT NEWS KENYA GamStop and Responsible Gambling in Africa 4 days ago Szarlot BETTING KENYA Expand the war on betting addiction 1 week ago Samuel EXPERTS KENYA National Treasury Drafts Strategy to Catch Tax Evaders 1 week ago Samuel Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.