Increased Kenya betting taxes may harm nation’s sports funding

Kenyan betting industry and sports stakeholders have detailed concern about the potential rise in gambling and lottery taxes which could create negative business conditions and hinder effective tax revenues vital to the nation’s sports and social development programs.

The restructuring of Kenya’s gambling laws have been a key mandate for the National Assembly which seeks to improve consumer provisions and protections as sports betting has surged in popularity.

Last week Kenya’s Betting Control and Licensing Board published draft levies targeting betting and lottery operators which would see the inclusion of taxes on licensed operator market earnings, in addition to current taxes on operating income and annual dividend.

Led by industry body, the Association of Gaming Operators of Kenya (AGOK), betting stakeholders have urged the National Assembly and Kenyan Revenue Authority (KRA) to undertake fair hearings on betting taxation, taking into account its growing industry and funding of Kenyan sports.

Stating its case, the AGOK points to the significant funding made by bookmakers Betway Kenya and Sportpesa who have invested in Kenyan professional football teams and further grassroots initiatives.

Clarity is a key concern for AGOK members, who have complained to the KRA of falling foul of double taxation practices.

Furthermore, Ronald Karauri Sportpesa CEO detailed that the industry had been misrepresented in draft national gambling frameworks, as Kenya MP betting directives had been ‘wildly exaggerated’ creating a ‘deeply misguided and misinformed agenda’ regarding industry operations.