This archive report was first published on 4 August 2019.
On August 4, 2019, gaming firm BetLion began deducting 20 percent tax from customer winnings in compliance with a directive by the industry regulator and the Kenya Revenue Authority.
According to BetLion, which is registered as MauUgan Enterprises Limited, the move was made in accordance with the Income Tax Act.
The firm's decision comes despite a court order in April temporarily stopping gambling and lottery firms from deducting 20 percent tax on winnings pending the hearing of a civil case filed by a betting enthusiast.
However, BetLion stated that it was not part of the court order that suspended the operation of sections 2, 10, 34, and 35, which provide for deduction of withholding tax from winning on betting.
Kenya Revenue Authority had asked the court to stop the order, arguing it would freeze collections of about Sh2.7 billion from winners.
“Given the ongoing uncertainty with regards to the Income tax act under section 35 (1) (i) and 3 (h) we have taken the advice of BCLB and the KRA and have decided the most appropriate course of action is to apply it as per the KRA’s view of the law,” BetLion said.
