This archive report was first published on 9 August 2019.
Published on August 9, 2019, OdiBets, a leading betting firm in Kenya, has begun implementing a 20 percent tax deduction on customer winnings as per the directive by the Betting Control and Licensing Board and the Kenya Revenue Authority (KRA).
According to Aggrey Sayi, OdiBets Country marketing manager, clients will now receive 80 percent of their potential winnings. This move is in compliance with the Finance Act 2018, which introduced a 20 percent withholding tax on prize money for placing bets.
As per the directive, betting companies are required to withhold winnings at a rate of 20 percent. For instance, if a customer places a bet and wins Sh50,000, they will receive Sh40,000, with the remaining Sh10,000 being withheld by the betting company and remitted to KRA.
Some industry players have expressed concerns that this tax deduction might lead to a higher tax burden for customers, potentially wiping out their winnings and eating into the amount they had put in the bet.
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