Sports betting firm SportPesa has made good on its threat to scrap its sponsorship of Kenyan sporting bodies after the government’s increased gambling tax took effect.

On December 31, the Football Kenya Federation (FKF) confirmed receiving a letter from SportPesa CEO Ronald Karauri noting last week’s ruling by Kenya’s High Court that the government’s imposition of a uniform 35% tax on all gambling products was legit.

The new tax rate officially took effect on January 1. Accordingly, Karauri told the FKF that “all contracts between us stand terminated as from December 31, 2017.” SportPesa was less than two years into a five-year, Sh500m (US $4.8m) sponsorship of the Kenyan Premier League, and FKF president Nick Mwendwa said the loss of this revenue stream would be “a big blow to us.”

SportPesa is also scrapping “the full value” of its deals with Gor Hamia FC, AFC Leopards, Nakuru All Stars, Kenya Harlequins and the SportsPesa Super 8 League.