Kenya has decided to implement a proposed gambling tax increase that will see casino, raffle and sportsbook operators pay as much as 35% on gaming services. The new tax is increased by 7.5% compared to the original proposal and will not void the existing 30% corporate tax. Additionally, betting operators are requested to offer 25% of sales to various social causes, including sports sponsorships and youth programs. Although the tax has been hailed as an ideal measure against youth gambling by government officials, key figures from local and foreign betting sites have denounced the recent measures as counter productive and punitive.
SportPesa, one of the most influencial sportsbook operators within the Eastern African country, have gone so far as to appeal against this decision to the high court. Furthermore, they have declared that if the ruling is decided against them, they will end their sponosorship to the local football league amid claims of financial unviability. Although it’s still early times for the Kenyan sports betting market, if SportPesa do indeed stop being sponsors of the league, this will lead to a 120m KES (£860.000) deficit in the Federation’s coffers.