What New Tax Law Means For Kenya’s Online Betting Industry
Following President’s decision to approve the revised 7.5 percent turnover tax on gambling, the Kenya gambling industry has been revived. His decision to significantly lower gambling tax rates will make the Kenya gambling market more welcoming towards big operators including SportPesa that will probably re-enter the market. As estimated recently, over 10,000 Kenyan residents are employed in the gambling industry.
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Such a site is not licensed and registered in Kenya, and is therefore unsafe and untrustworthy. This is the gross turnover less the amount paid out to customers as winning. Gaming refers to the playing of a game of a chance for winning in money or money’s worth.
- Please note that they’re charging 20% withholding tax on all stakes and you’ll have to adjust accordingly.
- The mother company has its headquarters in Cyprus where they began their operations in 2017.
- 22bet online acquired their betting licence in 2018 for the Kenyan market.
- While these methods can provide anonymity and flexibility, they may involve longer processing times, currency conversion fees, and restrictions based on the player’s location.
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Users might connect to multiple representatives, leading to a fragmented conversation. Back to the Kenyan gambling market, back in 2017, almost 30 percent of Kenyan residents over the age of eighteen have engaged in https://22betofficial.com/ some gambling activities previously. According to a report released by the International Journal of Financial Studies, Kenya has the highest number of young gamblers when compared to other countries of the Sub-Saharan African region. The same report, around 96 percent of these young Kenyan gamblers use their mobile devices to engage in gambling activities.
This means that if you place a bet and win Ksh 50,000 you will receive Ksh 40,000. The balance of Ksh 10,000 is withheld by the betting company and remitted to KRA. This pressure has caused certain companies to recalibrate their business models and operational strategies to remain competitive while coping with the additional tax expenses. In some instances, betting companies have made the difficult decision to scale down their operations or even exit the Kenyan market altogether due to the fiscal implications of the taxes.
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The lottery tax is charged at a rate of 15% of the lottery turnover. The tax must be remitted by the 20th day of the month following the month of collection by a person carrying on a gaming business. Deshmukh is a practicing physician and renowned medical journalist, honored for her investigative reporting on public health. She is dedicated to delivering accurate, evidence-based coverage on health, wellness, and medical innovations.
The move is aimed at increasing transparency and accountability in the betting and gaming industry, ensuring that the government collects its fair share of taxes. Kenya’s betting industry has undergone a remarkable evolution through the implementation of betting taxes, generating substantial government revenue amounting to KSH 19 billion. Melbet is a multi-national website that has been in the industry for more than a decade.
Paradise Lost peeks through the story of Louis Otieno, the times, and everything in between. Nation Reports is a weekly podcast offers an opportunity for listeners to interact with various reporters and journey with them as they unravel the biggest most emotive stories. The Kenya Revenue Authority (KRA) collected KES 5.8 billion from 16 betting firms since mid-November 2022, the Authority has said.
