In Kenya and federal legislators have reportedly passed a measure that would eliminate the controversial 20% turnover tax local online sportsbetting operators have been required to pay since 2018.
According to a report from CalvinAyre.com, the contentious duty applies to the total sum including stake bookmakers pay winners following the conclusion of a wager with its introduction said to have been a major reason why previous market leaders such as BetIn and SportPesa decided to abandon the Kenyan sportsbetting landscape.
Presidential privilege:
The reversal was contained within the African nation’s budget for the upcoming fiscal year although its ultimate fate now rests in the hands of Kenyan President Uhuru Kenyatta (pictured). The source moreover reported that the about-face will become law from the first day of next month only if the 58-year-old leader decides to follow the lead of the National Assembly by putting his signature to the legislation.
Past pronouncements:
Kenyatta is reportedly no friend to the online sportsbetting industry after revealing in August that he would be prepared to institute an outright ban should the requisite legislation appear on his desk. This was purportedly followed three months later by the publication of a government-sanctioned inquiry that endorsed the elimination of private sector operators in favor of a state-run monopoly.
Eliminating employment:
However, the country’s Finance and National Planning Committee later recommended removing the 20% duty because its implementation had led to hundreds of job losses and seen Kenya miss out on tax revenues that internationally-licensed domains such as the BetSafe brand of Swedish outfit Betsson AB are not obliged to pay.