Kenya sports betting ops prep return as turnover tax scrapped

Kenya’s controversial sports betting turnover tax is officially history while the country’s former market-leading operator preps its triumphant return.

On Tuesday, Kenyan President Uhuru Kenyatta signed his government’s new Finance Bill 2020, which eliminated the 20% betting turnover tax that caused many of Kenya’s leading operators, including SportPesa, to quit the market last year.

SportPesa was one of a couple dozen operators whose licenses were suspended last summer due to the government taking the dubious position that the 20% winnings tax applied to all sums paid out to punters, including their original stake. The government’s interpretation left operators liable for hundreds of millions of dollars in unpaid taxes, forcing companies like SportPesa and Betin to shut their local operations.

SportPesa reportedly held a nearly two-thirds share of Kenya’s betting market before its September 2019 exit, while Betin held a roughly 20% stake. Betika, which previously ranked third in terms of market share, remained in Kenya after agreeing to pay the controversial turnover tax, and has subsequently emerged as the new market leader.