Betting firms in Kenya worried about tax
The operators from Kenya are worried that the measure to increase betting taxes to 50 percent could be reintroduced in the future.
Kenya.- Just a couple of days after Kenya legislators voted against the push to increase all gambling taxes to 50 percent, the Association of Gaming Operators expressed its concerns about the measure being reintroduced in the future.
Ronald Karauri, chairman of the association, said to Capital Sport on Wednesday that whilst he was relieved that the hike was stopped, Kenya needs a consultation with the government in order to avoid any possible future problem regarding gambling taxes. He specifically said that he’s concerned about the budget plan for the 2017-2018 financial year. The official is also the CEO of SportPesa, and he said that if the tax proposal comes back next year, the company will not think twice and withdraw their package. “If it is imposed again next year, we will have no choice but to pull out all the sponsorships because as a business our revenues will go down.”
“At least there is some faith back and I am happy Parliament made a sober decision. The problem has been brought up because there was no consultation from the government side. Heavy taxation on betting firms will not regulate the industry but instead encourage back street betting. But we don’t want to get shocked next year because it’s not certain. The approval was only for this financial year. We cannot plan for next year because it’s uncertain and that’s why I am insisting on consultation to settle this mess once and for all,” he added.
Moreover, other officials expressed their content with the resolution, like the Kenyan Premier League CEO Jack Oguda, who said that he wanted to congratulate Parliament for shooting down the proposal: “It will now give us an edge to grow sports in the country because such sponsors help us to invest more in the game. It will also open up a door for more betting companies to come on board and sponsor teams with Sofapaka and Mathare United already having betting companies as their sponsors.”
