Kenyan sports betting operators are legally challenging the government’s demands for tens of millions of dollars in back taxes, saying the taxman is confusing customer deposits with revenue.

On Monday, local media outlet The Star reported that Kenya-licensed sports betting operators SportPesa and Betin had filed separate High Court lawsuits against the Kenya Revenue Authority (KRA), which is seeking Ksh26b (US$257m) in what it claims are gambling operators’ outstanding tax obligations.

The KRA is reportedly seeking combined payment of Ksh15.2b from the two operators that filed the lawsuits. As of July 1, the government plans to suspend the license of any gambling operator with unpaid taxes but Betin and SportPesa have asked the Court to suspend the KRA’s judgments until the legal matter is resolved.

The government believes its gambling licensees failed to remit the required 20% tax on bettors’ winnings, while the companies have countered that they were unable to withhold the funds due to court challenges filed by bettors unwilling to pay the tax.