Saturday, May 18, 2024
HomeKenya's Top Multimillion Betting Firm Renders Kenyans Jobless as It Closes Operations

Kenya’s Top Multimillion Betting Firm Renders Kenyans Jobless as It Closes Operations

Betting company Betsafe has made the decision to cease operations in the country due to the government’s recent increase in taxation.

The brand, which falls under the Betsson umbrella and established its presence in Kenya in 2020, had notably secured significant sponsorship deals with two prominent football clubs in the nation, Gor Mahia and AFC Leopards.

In a press release, they expressed regret over the necessity of this action, stating, “We regret to inform you that Betsafe Kenya will cease its operations effective 14 May 2024. Outstanding player balances will be refunded via M-Pesa to the registered number within 7 days.”

This move comes in the wake of the government’s proposal to raise the excise tax on betting stakes from 12.5% to 20%, a change that could have severe implications for gamblers if implemented.

Under the new amendment, bettors would be required to pay KSh 20 for every KSh 100 staked, a significant increase from the current KSh 12.5. The proposed alteration to the Excise Duty Act specifies this change, replacing the existing rate with the new 20%.

The potential impact of this amendment extends beyond just the increased cost to punters. With reduced stakes, potential winnings for gamblers would also decrease.

Additionally, betting companies are obliged by law to deduct and remit withholding tax to the Kenya Revenue Authority (KRA) by the 20th of the subsequent month.

Moreover, these firms are subject to paying the KRA 15% of their gross gaming revenue as taxes, along with a 1% monthly income levy.

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