Kenyan’s parliament has rejected plans to offer local gambling operators a break from their recent tax hike, potentially dealing another blow to local sports sponsorships.

On Thursday, Business Daily reported that the National Assembly committee on Labor and Social Welfare had withdrawn proposed amendments in legislation seeking to amend to the recently revised Betting, Lotteries and Gaming Act.

The Act was changed last summer to impose a uniform 35% tax on all gambling revenue, resulting in drastic increases in taxation on Kenyan betting operators, who previously paid a tax rate of just 7.5%. The changes took effect on January 1.

Betting operators like SportPesa, who claimed the tax hike made their local operations unviable, continued to dialogue with the government in the hope of achieving some compromise. This approach appeared to be working when National Assembly Majority Leader Aden Duale proposed reducing the uniform tax rate to 15%, while simultaneously introducing a 20% tax on gamblers’ winnings to offset the hit to the government’s coffers.