Monthly Archives: May 2019

Kenya hikes betting operator SportPesa’s back tax bill to $147m

Kenyan sports betting operator SportPesa’s controversial back-tax bill has grown even larger as the government shows no signs it’s willing to forgive and forget.

Last year, the Kenyan Revenue Authority (KRA) hit SportPesa with a bill for KSH10.3b (US$103m) to cover back taxes the government believes the company owes. The KRA claims the sum represents the 20% tax on gambling winnings that SportPesa was required to withhold from its customers over a two-year period.

This week, the KRA sent SportPesa’s parent company Pevans East Africa Ltd a revised bill for Ksh14.9b ($147.4m), which includes interest on the unpaid taxes as well as Ksh2b in penalties for failure to remit the required sum in a timely manner. The KRA has reportedly given SportPesa 14 days in which to comply or face further financial penalties.

Pevans East Africa claims its hands are tied by last month’s court ruling that refused to lift an order blocking SportPesa and other Kenyan-licensed gambling operators from collecting the withholding tax from their customers. The court is currently mulling a lone SportPesa customer’s challenge of the withholding tax, and SportPesa has said this challenge prevented the company from collecting tax from all its customers.

Poll: Fatalities, Drugs, and Integrity: Americans’ Top Three Concerns for Horse Racing

Photo by Mathew Schwartz on Unsplash

According to a new, national and Kentucky-based poll commissioned by The Jockey Club, horse fatalities are the single most important factor facing the horse racing industry with nearly seven in 10 likely voters (69 percent) saying that it is a “very important” issue. The misuse of drugs was almost equally significant with 65 percent saying it was “very important.” Integrity and corruption also scored highly at 63 percent.

“This survey is further proof that the horse racing industry has reached a tipping point,” said Jim Gagliano, The Jockey Club president and COO. “The health of horses is of concern to both horse racing fans and the general public, and it’s time we make some real changes.”

Interestingly, these issues matter to people almost evenly across party lines and among Americans of all races and ethnicities. However, nationally, women are especially likely to view equine fatalities (77 percent), drugs (76 percent), and integrity (69 percent) as “very important” issues for the industry to address.

The poll also looked at the Horseracing Integrity Act (HIA) of 2019, which would establish a private, independent horse racing anti-doping authority involving the United States Anti-Doping Agency (USADA); require full transparency into the medical treatment, injuries, and health of all racehorses; and create one, universal system of medication regulation.

An astounding 91 percent of respondents said they would view horse racing “much more” or “somewhat more” favorably if the industry adopted the national regulations and strict anti-doping rules embodied in the HIA.

Other key findings in the poll include:

Kentucky

· Kentucky voters are three times as likely to say horse injuries have become more common (47 percent) than less common (15 percent) in recent years, which is no surprise given that U.S. horse racing lags far behind international standards to combat doping, creating horse injury rates that are 2.5 to 5 times greater than the rest of the world.
· 90 percent of Kentucky likely voters said they would be “much more” or “somewhat more” favorable to horse racing if Congress were to pass the HIA.
· 78 percent of Kentucky likely voters said that it is “very important” or “somewhat important” to reform the horse racing industry in order to improve the image of the sport.
· 95 percent of Kentucky likely voters said they would be “much more” or “somewhat more” favorable to horse racing if the U.S. adopted international standards, which are proved to reduce equine fatalities and injuries.

Nationwide

· 95 percent of likely voters said they would be “much more” or “somewhat more” favorable to horse racing if an independent group, such as USADA (which regulates Olympic athletes), created and enforced medication rules at least as stringent as for other professional sports.
· 93 percent of likely voters said they would be “much more” or “somewhat more” favorable to horse racing if all Thoroughbred racehorses were subject to random drug testing at any time prior to or after a race to test for prohibited substances.
· 93 percent of likely voters said they would be “much more” or “somewhat more” favorable to horse racing if the U.S. adopted international standards, which are proved to reduce equine fatalities and injuries.
· 94 percent of likely voters said they would be “much more” or “somewhat more” favorable to horse racing if there were national medication rules and penalties. Currently, 38 separate state jurisdictions regulate the horse racing industry.

“With industry leaders banding together showing support for passage of HIA, we will be easing concerns of Americans who feel we are not doing enough to protect the health of racehorses,” said Gagliano.