Sports betting operators in Kenya are ‘up in arms’ after the government set out a proposal to introduce a new 10% tax on sports betting stakes in an endeavor to curb problem gambling in the country.
Treasury Cabinet Secretary Henry Rotich unveiled his plan to impose a new excise duty of 10% on Thursday, 13th June 2019 as part of the 2019-20 financial budget.
According to Rotich, betting has become widespread in their society and its expansion has had negative social effects, particularly to the young and vulnerable members of their society.
Rotich went on to say that in order to curtail the negative effects arising from betting activities, he proposes to introduce excise duty on betting activities at the rate of 10% of the amount staked.
Last month a new Gaming Bill was introduced that will hike license fees considerably and allow local individuals to take up to a 30% stake in Kenyan-licensed operators, supposedly whether or not these operators intend taking on new partners. Foreigners who the government claims were illegally working in the local gambling sector have recently begun being deported by the government.
The Kenya Revenue Authority is also endeavoring to claim hundreds of millions of back taxes that is owned by a number of locally licensed gambling operators, including Betin and SportPesa
