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Gross gaming revenue taxed at 15 percent


Gross gaming revenue taxed at 15 percent

Kenya Revenue Authority announced ten betting companies whose license were not renewed on July 1, 2019, because of their tax compliance. Companies like Betway, OdiBets, Mozzartbet, Ken Bookmarkers, Lucky 2u, Eazi Bet, Kick off, Eastleighbet, Palms Bet and Bet Boss cleared their taxes on July 22, 2019.

Moreover, the two biggest betting companies, Betin, and SportPesa in Kenya were not in the KRA list of tax clearance. These two big companies, along with 17 other betting companies, are in the pending list of tax clearance from KRA.

According to the reports the Interior CS Fred Matiang gave three months to all the betting companies from April 1, 2019, to July 1, 2019, to get fresh renewal of their license for tax compliance. And they had to show that they have sufficiently performed well financially in previous years.

However, the tax dispute only occurs to know about the revenue of betting companies as the Government claimed that the betting companies are making Sh200 billion per year, but this amount is an estimated one, not the actual one that the companies are retaining, because most of the money is recycled where punters bet, win and bet again. But this is not an actual revenue of the betting companies.

The Betting Control and Licensing Board chairman Kimani Kungu stated in an interview that betting companies were earning Sh200 billion and Sh25 billion in the end of 2018 and there is no way that it could have risen in 2019.