Gambling revenues grow in Kenya

kenya

Credits: BBC.com

Kenya’s gaming entity calculates the industry’s tax payments according to its revenues.

Kenya.- Gaming industry keeps growing in Kenya, where eight authorised betting companies contributed to the government with US$45.3 million in taxes during the last three years. The results were published by the Kenya Revenue Authority (KRA).

The data is based on sports betting and lottery sectors, and does not include casino and bookmakers’ activities. With latest information, the KRA stated their opposition against amendments on tax conditions, which would lead to illegal gambling, according to the national entity.

“Our experience indicates that high tax rates even for commodities considered as socially undesirable ultimately lead to reduced demand. It may also help develop an underground economy and promote tax evasion,” explained John Njiraini, president of the KRA, to the Labour and Social Welfare Committee of the National Assembly.

Kenyan legislators are currently debating on increasing the gaming tax payments 15 percent of its revenues, and lottery fees would increase to 20 percent of its revenues. Meanwhile, companies are ready to offer their legal services for foreign players in order to boost their revenues and avoid tax payment to local government.