This archive report was first published on 10 July 2019.
July 10, 2019 - The Kenyan government has taken a significant step in its efforts to curb the country's growing gambling problem. In a move aimed at reducing the industry's tax evasion, the Betting Control and Licensing Board (BCLB) has directed telecommunication companies Safaricom, Telkom, and Airtel to withdraw pay bill numbers and SMS codes of 27 betting companies.
The affected companies, which include SportPesa, Betin, and Betway, are required to prove to the BCLB that they have been compliant with tax laws before they are allowed to acquire their pay bill numbers. The licenses of these firms remain withdrawn, and their payment platforms should also be suspended, according to a letter sent to the telcos by BCLB Director Liti Wambua.
“We wish to inform you that the licenses for the following betting firms were not renewed until they meet the outstanding renewal requirements as well as outcome of ongoing due diligence to determine if they are fit and proper to hold a license from this board. Consequently, we request you to suspend their pay bills and short codes until otherwise advised,” the letter reads in part.
The government had halted the licenses of these betting firms and required each and every one of them to re-apply for their licenses. So far, none of the betting firms has acquired its licenses back. The government has been trying to curb the gambling craze in the country with increases in tax but nothing seemed to work.
According to the BCLB, these betting companies made a cumulative amount of Ksh. 204 billion in profits last year but paid only Ksh. 4 billion in taxes. The government is now considering deporting the bosses of betting firms whose licenses were not renewed as it widens its crackdown on rogue operators in the multi-billion-shilling gambling industry.
