SportPesa Ends Operations In Kenya
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Kenyan online betting firm
SportPesa on Saturday says it will be halting operations due to a drastic
hike in taxes on betting stakes.
Online sports betting
companies such as SportPesa have grown rapidly in the East African nation in
recent years, riding a wave of enthusiasm for sports, with the government
saying the gaming industry achieved a combined revenue of 204 billion
shillings (2 billion U.S. dollar) last year.
That sparked government concern
about the social impact of betting, and in May Kenya introduced new gambling
regulations, including a ban on advertising outdoors and on social media.
This week, parliament voted
an amended proposal raising the excise duty proposed in the 2019/20
(July-June) budget on the amount wagered at the time a bet is placed on all
betting platforms to 20% from an initial 10percent.
SportPesa says it is
“disappointed” by the move and that it would stop its operations until a
“non-hostile regulatory environment” returned.
Kenyan Media are reporting
that a second firm, Betin Kenya, had also ended its operations, citing the
heavy taxation as the main reason. The company could not be immediately
reached for comment.
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