EXPERTS KENYA BCLB Proposes New Taxes on Betting to Help Fight Gambling Addiction 3 weeks ago Samuel Post Views: 109 The Betting Control and Licensing Board (BCLB) has set its sights again on betting firms with two new taxes lined up. BCLB states the new taxes will help fight gambling addiction among the youth in Kenya. Funds raised will be used to run gambling addiction campaigns and set up rehabilitation centres. “The Collector shall pay all the proceeds of tax paid under subsection (2) into the Sports, Art, and Social Development Fund established under the Public Finance Management Act, 2012” – BCLB says in the draft Bill. Provisions for the two proposed taxes exist in the draft Gambling Control Bill, of 2023. Thus, the regulator wants to charge a gambling tax at the rate of 15 percent of a betting firm’s gross gaming revenue. Furthermore, BCLB proposes a one percent monthly levy on the same revenue. The proposed taxes shall be paid to the Kenya Revenue Authority (KRA) on or before the 20th day of the following month. BCLB Adding to Existing Taxes Currently, Betting firms pay income tax at the standard rate of 16 percent. Additionally, the firms pay annual license and compliance fees. Firms must pay these mandatory fees to get BCLB accreditation. Furthermore, Betting firms pay corporate tax on profits at a rate of 30 percent. Taxes do not end there, KRA also requires the firms to withhold 20 percent of the winnings paid out to punters, adding to the 12.5 percent on every betting stake. This is paid in real-time or near real-time due to integration with KRA’s iTax system. For the financial year ending June 2023, KRA collected Ksh6.64 billion in excise taxes. This marked an increased collection compared to KSh5.1 billion raised a year earlier. As of June 2022, the industry had a gross turnover of around KES 50 billion making it a profitable sector. Thus, the industry keeps attracting new entrants with 10 new betting companies given operating licences recently. The Kenyan betting companies recently licensed are 44bet, Savvybet, Tigonbet, Chapbet, Betmo, Play2Net, Clarity Limited, Betkali and Ealotto. At the moment, Kenya is among the leading countries in Sub-Saharan Africa with a growing market share in the betting and gaming industry. The draft Gambling Bill is set to be opened for public comments before it can be tabled in Parliament. It is expected the betting firms will challenge the proposals. Earlier this year, the firms successfully petitioned lawmakers to drop the proposed 20 percent excise tax on betting stakes. Source: techweez.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: BCLB, Kenya, taxes Continue Reading Previous Xprizo launches to revolutionise the future of iGaming fintechNext How new technologies are driving financial inclusion in Kenya More Stories EXPERTS KENYA Tools Kenyan players can use instead of GamStop for responsible gambling 6 hours ago Szarlot BETTING KENYA Beez FC Wins 13th Edition Of KOT 5 Aside Tournament 6 hours ago Samuel EXPERTS KENYA Digital wallets as an enabler for financial services in Africa 3 days ago Szarlot BETTING KENYA Betting firms tax remittance hit Ksh 15B in FY2022/23 3 days ago Szarlot EXPERTS NIGERIA Afreko Media Amplifies Its Betting Platform Portfolio With The Acquisition Of Gamblers.Africa 3 days ago Szarlot EXPERTS KENYA Unlocking the power of mobile trading: A financial revolution in Kenya 4 days ago Samuel EXPERTS SOUTH AFRICA Online gambling addiction is a pandemic in SA, sucking in children and adults 4 days ago Szarlot EXPERTS SOUTH AFRICA MultiChoice investors kiss R32 billion goodbye 4 days ago Samuel KENYA ONLINE Xprizo partners with African payments provider M-Pesa 6 days ago Samuel EXPERTS KENYA Flutterwave wants to invest $50 million in Kenya 1 week ago Samuel BETTING KENYA Exploring OdiBets: A Game-Changer In Kenyan Sports Betting 1 week ago Samuel EXPERTS HOT NEWS KENYA GamStop and Responsible Gambling in Africa 1 week ago Szarlot 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.