Kenya’s betting operators will have to face their new 35% tax obligations after a court dismissed a challenge of the government’s tax hike.

Kenya’s government approved a new uniform 35% tax on all gambling products this summer, despite protests from operators that the new rate made their businesses unviable. The new rate, which kicks in on January 1, 2018, marks a significant rise over the existing rates, which for betting operators had been a mere 7.5%.

In October, the Pambazuka National Lottery filed a lawsuit alleging that the tax hike was unconstitutional., given that parliament approved the hike as an item in the national budget, rather than subjecting standalone legislation to greater public scrutiny.

The suit also accused President Uhuru Kenyatta of exceeding his authority in signing the legislation, and argued that the tax imposed an unreasonable and excessive burden on the industry.