Premier League Sponsor Pulls Out of Kenyan Betting Market

SportPesa, one of the official sponsors of Everton Football Club, have announced they are suspending all activity in the Kenyan market with immediate effect. The move comes as a result of the Kenyan government pushing up taxes on, with a new levy of 20% introduced.

The African sub-continent has been widely viewed by betting firms as ripe for expansion but news of the Kenyan government’s plans may put a halt to the gambling firms who have been eying up sites. Hefty charges have left what many are describing as an overtaxed environment and forcing big betting firms to pack up shop.

An Established Kenyan Business 

Following the plans from the Kenya government, SportPesa have confirmed that it will not be continuing to offer its services in the country as a direct response to the new taxation. This is a major move for SportPesa as it doesn’t just have operations in Kenya, it’s also the location of its headquarters.

Based in Nairobi, SportPesa has seen a steady but consistent increase in their business over the last five years but says it is unable to operate in the environment that’s been created by the tough taxation laws.

The betting firm has confirmed it will be continuing with all activities in other countries without any disruption, but will be pausing its activities in Kenya in the current climate.

A spokesman for SportPesa said that doubling the duty from 10% to 20% was the breaking point for the company, forcing it to make the difficult decision to pull out of the Kenyan market. The company warned that the government policy could result in other licensed betting companies following suit. They went on to caution that if betting firms do exit the market, the anticipated pay day the Kenyan government are expecting from betting activity will dwindle to virtually nothing.

Fears of Betting Firms Going Underground 

Experts fear that the taxation system introduced by the Kenyan government won’t increase their revenue stream but instead will drive betting firms underground, increasing illegal activity.

The 20% duty which now applies is in addition to the 20% tax on winnings which the government brought back in 2018, 35% corporation tax and a further 15% tax on GGR.

As an example, SportPesa say they will be paying out twice as much in taxation as they would bring in from revenue in Kenyan, thus rendering the operation impossible to preserve.

SportPesa believes that the Kenyan government do not have a full understanding of how betting revenue is calculated and is penalising firms unfairly.