SBC News Voice of the Sports Betting Industry
Kenyan betting and lottery operators are by far the ‘biggest losers’ of the 2017/18 Kenya National Budget presented by Treasury Secretary Henry Rotich.
The worst nightmares of Kenyan betting industry stakeholders came to life, as Rotich and the National Alliance (TNA) government announced a ‘uniformed 50%’ industry revenue tax on all verticals, more than tripling current gambling tax charges of 15% (lottery and betting).
For months, Kenyan sports betting operators had urged the government not to raise taxes on industry services, with multiple stakeholders claiming that they had been victims of ‘double taxation’.
This February industry body, Association of Gaming Operators of Kenya (AGOK) had asked representatives of the National Assembly to halt any review of Kenya’s gambling bill, as AGOK officials believed that the government had been deeply misinformed on industry practices and revenues.
Ronald Karauri, Sportpesa CEO and AGOK Chairman, warned that a substantial tax rise would kill a growing industry and effective tax revenue channel for the Kenyan government.
Nevertheless, presenting his budget statement, Treasury Rotich claimed that the higher taxes were put in-place to stop problem gambling in Kenya.
“Betting and Gaming have become widespread in our society in an environment that is inadequately regulated. Its expansion is beginning to have negative social effects in particular on the youth and the vulnerable members of the society” Rotich said in his statement.
Rotich further stated, that the 50% tax was better than charging on consumer gambling winnings which had proved vastly unpopular when introduced in 2011 Finance Bill (later dropped following player protests).
As yet, the AGOK and Kenyan betting stakeholders have made no comment on the 50% tax charge. Kenyan media is split on whether charging gambling operators at a substantially higher rate will have any impact on reducing gambling.
