This archive report was first published on 28 September 2019.
Kenya's sports gaming and betting industry has suffered a significant blow with the closure of SportPesa and Betin Kenya, two of the country's largest betting firms, due to a prolonged tax stand-off with the government.
On September 27, 2019, Betin Kenya's Managing Director declared all staff redundant in a letter, citing a harsh business environment that had left the company unable to operate since July 2019.
“Management had to rethink its operational model and to proceed with the exercise of termination on account of redundancy,” the MD stated.
Meanwhile, SportPesa cited inadequate taxation and a hostile regulatory environment as the reasons for its decision to halt operations in Kenya. The firm expressed disappointment with the Kenyan legislature's decision to impose a 20% excise tax on all betting stakes, stating that the tax was based on a fundamental misunderstanding of how revenue generation works in the bookmaker industry.
“Until such time that adequate taxation and non-hostile regulatory environment is returned, the SportPesa brand will halt operations in Kenya,” the firm stated.
With the closure of these two firms, approximately 2,500 youths will be left without jobs, highlighting the devastating impact of the tax dispute on the country's sports gaming and betting industry.
