Kenya’s top betting operator SportPesa, which pulled out of the Kenyan market earlier in the year may relaunch following the overruling of a 20% tax on winnings announced by the government.
SportPesa shut shop in Kenya after the government introduced a 20% excise tax on all betting stakes.
Gambling insider quotes Sport Pesa Ceo commenting on the Kenyan Tax Appeals Tribunal’s decision to overturn the government’s decision to introduce a 20 percent tax on winnings: “This is expected to be a 20% tax on the amount staked. The fact we already have a tax on winnings means the business model completely collapses.”
“Today’s ruling is a significant development for both SportPesa and the wider betting sector in Kenya, reversing previous government policy that had rendered the sector commercially and economically unviable.
“SportPesa will now re-consider the future of its operations in Kenya. We remain committed to working closely with all stakeholders in Kenya as we seek to renew our license and resume our operations in the near future.”
The two companies had been facing difficult times with the revised policies on gambling. Earlier this year, SportPesa also had its license suspended. However, the license of two gambling operators SportPesa and Betway were restored.
However, despite the license reinstated, SportPesa has announced that they are withdrawing from the Kenyan market citing the government’s anti-gambling and betting policies.