KENYA Big acceleration for bookmakers in Kenya after a favorable court decision 5 years ago Iwo Bulski Post Views: 985 Sports betting in Kenya looks set to experience another boom after a tribunal ruled in favour of betting sites in a tax dispute with the government. The online gambling industry in Kenya has been in a protracted tax dispute with the government for most of 2019, but the betting sites could well have the last laugh after a Kenyan court recently ruled in the bookmakers’ favour. The government had demanded that the betting sites paid tax on bettors’ stakes, as well as winnings, but the Kenyan Tax Appeals Tribunal has sided with the bookies, ruling that tax should only be levied on player winnings. Sports betting in Kenya has been growing at a very rapid pace over the last few years, with the East African nation emerging as the third largest market behind Nigeria and South Africa, but the industry went into shutdown a few months ago after the government cracked down on the activities of the bookmakers. Over the years, betting sites in Kenya haven’t exactly been in great terms with the government, but trouble escalated earlier this year when the latter attempted to impose tougher tax rules on the bookmakers. The government demanded that the betting sites paid tax on bettors’ stakes, as well as winnings- a move which the bookies naturally kicked against. Kenyan authorities withdraw licenses from over 20 betting companies The Kenyan High Court initially block the new tax rules after complaints from the betting sites, but the reprieve would be temporary. At the start of July, the Betting Control and Licensing Board withdrew licenses of over 20 betting sites that had failed to comply with the tax rules, throwing the sports betting industry in the country into turmoil. The government also ordered payment portals like M-Pesa to discontinue their association with the sports betting companies, giving millions of bettors 48 hours to withdraw funds from their betting accounts. The government would continue its tough stance on betting sites, with President Kenyatta pushing for tax on bettors’ stakes to be increased from 10% to 20%. This was voted through by Parliament in September. Hamstrung by a “hostile regulatory and taxation environment”, leading betting site, SportPesa ceased its operations in Kenya, terminating its sponsorship of sporting activities in the country, and laying off over 400 employees. Reprieve for betting sites in Kenya After a long, drawn-out battle with the government, it appears there may be some light at the end of the tunnel for the betting sites after all, with the Kenyan Tax Appeals Tribunal ruling that tax can only be collected on player bettors’ winnings and not stakes. The tribunal also instructed that the tax authority should collect tax directly from the bettors, and not the betting site. Unsurprisingly, the betting companies have thrown their weights behind this ruling, with SportPesa CEO, Ronald Karauri calling on the authorities to take the court’s decision “fully on board” and set laws that align with global practices, while stating that the company will reconsider its future in Kenya. Source: nairobiwire.com About Post Author Iwo Bulski Issues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge. See author's posts Iwo BulskiIssues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge. Facebook Twitter LinkedIn Email Print Tags: Kenyan High Court, Ronald Karauri, SportPesa Continue Reading Previous Kenya Market in Jeopardy; State-Run Lottery FavoredNext Kenyan Preacher Killed by Mob over Gambling Machine More Stories BETTING KENYA Prison Officer Under Observation After Heavy Betting Losses 3 days ago Szarlot BETTING KENYA State plans new gambling regulations as 30-day media adverts ban nears end 3 days ago Samuel EXPERTS KENYA Kenya to cut digital asset taxes in half 2 weeks ago Szarlot EXPERTS KENYA BCLB defends the gambling industry against false media claims 2 weeks ago Samuel BETTING KENYA Move to regulate betting on TV, radio a chance for vital reset 2 weeks ago Szarlot EXPERTS KENYA Visa announces new AI tech, how it will impact online casino payments in Africa 2 weeks ago Samuel BETTING HOT NEWS KENYA Over 50 Betting Firms Shut Off As Govt Cracks Down On Illegal Operators 2 weeks ago Szarlot BETTING KENYA Kenya drops from top gambling country in Africa position – survey 3 weeks ago Samuel BETTING KENYA List of betting websites operating illegally 3 weeks ago Samuel BETTING KENYA Gambling advertising in Kenya banned for one month by the BCLB 3 weeks ago Samuel EXPERTS KENYA Kenyan Regulator Cracks Down On Betting Ads 3 weeks ago Samuel EXPERTS KENYA How is the iGaming market developing in Kenya? 3 weeks 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.