New SportPesa owner summon by BCLB

Betting Control and Licensing Board (BCLB) has summoned the new SportPesa owner, Milestone Games Limited, to explain why the brand’s license should not be scrap. A few weeks ago, the BCLB had suspended the firm’s permit over the name use; however, the company went to court and got the name SportPesa back.

The new development would see the betting firm’s directors appear before the regulatory body to explain their relationship with Pevans Limited, if any, and show why the license should not be withdrawn or scrapped. BCLB chairman Cyrus Maina has written to Milestone’s operations director Bernard Chauro, requiring the directors of Nob Five Limited and Wilson Karungaru Ngatia to appear before the board and explain why the license should not be withdrawn.

However, they are accused of breaching an agreement they signed with BCLB before being issued with a betting license. BCLB memo says the approval was to enable it to conduct due diligence on who own s Milestone, its directors, and the shareholders. Milestones’ ownership is an unfolding saga as the board’s letter on the firms’ registration shows that Pevans owners are back to the game, but with a new face. This is the puzzle that Milestone’s directors will be required to elaborate on. According to BCLB, Nob Five has 9,950 shares in Milestones while Karungaru’s stake in the firm is 50. but the ownership web does not end there. Nob Five is owned by Seeniun limited holding 9,600 shares, while Jacqueline Nyambura Kungu owns 400 shares. According to the board letter dated

November 24, Selenium Limited, owned by Ronald Karauri, has 400 shares. Francis Waweru Kiaries has 300 shares.

“It is the view of the board that the actions that the actions as mentioned above of the company constitute a material breach of the applicable requirements for which its license may be canceled or varied,”  – Mr. Maina wrote to Milestones November 24, 2020.

Nevertheless, in its court papers, Milestone explained that Pevans do not own the trademark name SportPesa. Instead, it said SportPesa Global Holding owns it. It also includes Pevans as an interested party in the case. In court, Milestone’s lawyers Otieno Ogola and company Advocates said BCLB unilaterally took the drastic action without giving it a chance to explain why and how it got the name. “it is not true that the trademark SportPesa belongs to M/S Pevans East Africa Limited and this information was communicated to the respondent (BCLB).

The applicant has further received confirmation that M/S Pevans East Africa Limited does not own the said trademark as alleged by the respondent from the letter – court papers read.

Nevertheless, the BCLB chairman, in his letter requiring Milestone owners to appear before it on December 3, says the board’s investigations revealed Milestone’s shareholding had since changed. BCLB issued the license to Milestone director James Muigai Ngengi on October 6. Mr. Muigai’s name does not feature as a shareholder. BCLB suspended the permit after it learned Milestone had taken up SportPesa.

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Adeleye Awakan

Author E-play Africa, sports betting reviews, thoughtful leardership articles in Africa gambling industry, marketing gaming platforms in Africa with strong networking relationship with gaming operators in Africa, Expertise in PR, marketing communication, and consultant on gaming in Africa.

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Adeleye Awakan

Author E-play Africa, sports betting reviews, thoughtful leardership articles in Africa gambling industry, marketing gaming platforms in Africa with strong networking relationship with gaming operators in Africa, Expertise in PR, marketing communication, and consultant on gaming in Africa.