AGOK proposes 20% GGR tax for Kenya’s land-based casinos
The association has also called for changes to online gambling tax definitions, citing uncertainty over the treatment of deposit bonuses.
Key takeaways:
- AGOK proposed a unified 20 per cent GGR tax for land-based casinos in Kenya.
- The association supports retaining the existing 5 per cent excise duty on online betting deposits.
- John Mutua said changes to deposit and withdrawal definitions under the Finance Act 2026 created uncertainty over the treatment of deposit bonuses.
- AGOK wants online gambling transactions verified through records held by mobile network operators and betting platforms.
Kenya.- The Association of Gaming Operators Kenya (AGOK) has proposed a unified 20 per cent gross gaming revenue (GGR) tax for land-based casinos and called for clarification of online gambling tax definitions ahead of the Finance Bill 2027. The proposals were presented during a November 2 meeting with the National Treasury and Kenya Revenue Authority (KRA), according to AGOK CEO John Mutua.
Mutua said in a statement that the discussions formed part of AGOK’s engagement with government over tax policy recommendations submitted for consideration in the preparation of the Finance Bill 2027.
For land-based casinos, AGOK has called for a single tax of 20 per cent on GGR, arguing that casinos operate under a different business model from online betting operators.
Mutua said the proposed approach would provide a clearer basis for calculating and auditing casino taxes by applying the levy to the revenue retained by the house. He added that a unified tax would be fairer to a sector that employs many Kenyans. “For land-based casinos, we pressed for a single unified tax of 20 per cent on GGR,” Mutua said, in an AGOK statement.
For online gambling, Mutua said AGOK supports “retaining the existing 5 per cent excise duty on deposits and the 5 per cent withholding tax on withdrawals.”
According to Mutua, the current tax arrangements had improved collections while providing operators with greater certainty and punters with clarity about the taxes applying to their transactions. He said the stability was worth protecting after years of changes to the tax regime.
However, AGOK has also requested a review of how the terms “deposit” and “withdrawal” were redefined under the Finance Act 2026.
Mutua said the changes had created ambiguity, with operators interpreting the provisions differently. He specifically highlighted concerns that the expanded interpretation could unintentionally bring deposit bonuses into the tax framework. “A tax that can be read two ways is hard to comply with and even harder to enforce,” he said.
The AGOK CEO said consistent interpretation of the provisions was necessary for operators and KRA to work from the same understanding of their tax obligations. He also highlighted the role of transaction records in verifying online gambling tax obligations.
Mutua said every deposit and withdrawal generates records held independently by mobile network operators (MNOs) and betting platforms, allowing transactions to be cross-checked. He argued that when records from both sources match, there is less room for disputes over transactions. Using independently verifiable records could improve tax collection, reduce opportunities for revenue leakage and lower administrative costs.
AGOK said it would continue engaging stakeholders in the lead-up to the Finance Bill 2027.
Frequently asked questions (FAQs)
- What tax rate has AGOK proposed for land-based casinos in Kenya? AGOK has proposed a single 20 per cent tax on gross gaming revenue (GGR) for land-based casinos, arguing that it would be easier to calculate and audit.
- What gambling taxes does AGOK support retaining in Kenya? AGOK supports retaining the 5 per cent excise duty on deposits.
- Why does AGOK want Kenya to review gambling tax definitions? AGOK says changes to the definitions of deposits and withdrawals under the Finance Act 2026 have created uncertainty among operators, particularly regarding the treatment of deposit bonuses.
- How does AGOK propose improving verification of online gambling taxes? AGOK advocates cross-checking betting transactions against records held by mobile network operators and betting platforms to improve tax verification, reduce revenue leakage and lower administrative costs.
