Betting in Kenya: Gambling Tax Remains at 35%

Betting in Kenya is not so profitable now. Betting operators in Kenya have been attempting to get the government to decrease the new tax implemented on gambling revenue. The new tax is set at a whopping 35%. An amendment was filed before the parliament to reduce the tax from 35% to 15%. This amendment was included in the new Finance Bill of Kenya. The proposed law will also reduce the payments of gambling operators to social causes.

The 35% tax on all gambling revenue began January 1 of this year. This created a huge challenge from online gambling operators, and even the country’s lottery operators. Prior to this new law, the taxes were only at around 7.5% for betting and 5% for lotteries.

Betting in Kenya – Needs More Work

Those who use sportsbooks can check out sportsbook pay per head reviews to find options for sports betting – as long as you are not in Kenya, of course. But for the local gambling operators, they are facing stiff competition from government officials. Particularly the State Treasurer, Henry Rotich. Allegedly, Rotich has been personally talking to members of the Parliament to not pass the amendment. Not only that, but in the beginning of the drafting of the gambling laws of the country, Rotich was rooting for a 50% tax.

And this isn’t the first try to get the gambling tax lower than 35%. The first attempt was made by the National finance and Planning Committee, where they tried to attach the 15% tax rate to the Tax Laws Bill 2018 (Amendment) last June.

As for the effect of the 35% tax? A few Kenyan Operators had to shut down their local operations, and some operators also cancelled sponsorships of certain sporting teams and leagues. Sponsorships are still there, but the figures involved are minor, compared to before. There are also rumors on possible restrictions on how operators will promote their businesses. Land-based operators in Kenya will be facing issues like this for quite some time.