Betway’s Kenyan licence reinstated after operator agrees to new player tax
Twenty percent withholding tax imposed on all punter bets as firm resumes operations
Betway has had its Kenyan sports betting licence reinstated after agreeing to a new controversial tax on player winnings, it was announced this week.
Kenya’s Betting Control and Licensing Board (BCLB) confirmed the licence reinstatement late on Wednesday evening, ending a month-long absence from the Kenyan market for the operator.
https://twitter.com/Betway_KE/status/1166719143388897280
As part of the licence reinstatement, Betway has agreed to the Kenyan government’s new calculation method of taxation which would see the collection of a 20% tax rate on player winnings.
In the past, the 20% tax rate had previously only applied to the winnings generated from the bet and not the original stake, however under new proposals, the tax would apply to both.
In a statement following the reinstatement, Betway confirmed it would make the change to “uphold full compliance” with Kenyan taxation laws.
“This will be clearly displayed on individual bet slips to ensure transparency and for ease of understanding by the punter and the collected tax will be remitted directly to KRA on behalf of punters,” Betway added.
Betway was among 27 firms to have their licence renewals denied by the BCLB in early July, following claims that they had not paid enough tax in Kenya. However, later in July, Betway were cleared by the Kenyan Revenue Authority as being tax compliant along with nine other operators.
Rival operator Betika has already chosen to comply with the new tax calculation, pending the determination of its own legal case against the Kenyan tax authorities, drawing consternation from Kenyan punters.
https://twitter.com/bevalynekwambo3/status/1159481503908270080
When informing customers of the change, Betika said that it had “no option” but to deduct the 20% from winnings, pending a full legal definition of the calculation method.
Last month, fellow operator SportPesa attacked the Kenyan government over its interpretation of sports betting taxation. It claimed the government was incorrectly counting all bets as revenue and failing to account for pay-out of winnings to customers.
It later followed this up by removing all of its Kenyan sponsorships, citing the “punitive” measures being used by the Kenyan government as a factor.
Earlier this week, Kenyan President Uhuru Kenyatta called on Kenyan legislators to totally ban all forms of gambling in Kenya over claims of high gambling addiction rates in the country.
Speaking in a church service, Kenyatta said: “We have this thing called gambling and it’s so bad, I alone cannot finish it, go and change that constitution.”
Kenyatta called on Kenya-facing operators to adhere to the country’s laws until such a legal change can be facilitated.
“Let me grow that money until the law is changed,” he added.