This archive report was first published on 30 September 2019.
Kenya's high taxation has dealt a blow to the sports betting industry, with Betin Kenya being the latest victim. The company has closed operations and issued a notice of termination to all its staff, effective October 31st, 2019.
The move follows Sportpesa's exit from the Kenyan market earlier this year, after the government demanded a 20% excise duty on stakes. Betin's license was not renewed by the Betting Control and Licensing Board (BCLB) in July, forcing the company to halt operations and leading to significant financial constraints.
According to an internal memo, the company's management had to rethink its operational model due to the deterioration of profitability. The memo explained that the decision to terminate staff was made due to the financial constraints, but employees will continue to work as usual until the end of October.
The government's demand for a 20% excise duty on all stakes has put pressure on betting firms, with the exit of companies like Betin and Sportpesa affecting not only the firms' profits but also the funds available for sports sponsorship.
