The Kenyan government has finally approved a major reduction in betting taxes from 35% to 15%.
Taxation of gross gaming revenue was raised from 7.4% to 35% last year, leading to significant protests from the betting and sports industries with the latter relying on funding via the tax.
However Kenyan President Uhuru Kenyatta today signed the Finance Bill 2018 which also imposed a new 20% tax on bettors’ winnings.
MPs said the new regime will generate SH30b (US$297m) each year for the state.
Earlier this month Kenyan politicians rejected the proposed reduction despite concerns that the 35% rate was hampering the growth of the local market.
Major operator SportPesa has been at the heart of the taxation argument, having withdrawn its big-money sponsorship of local sports teams when the 35% rate was introduced, claiming the high rate would severely hinder the profitability of its business.