As reported, one of the most prominent UK-based online bookies SportPesa is reconsidering entering the rich, growing Kenyan online sportsbetting market. The news about the company reconsidering its options in this market came shortly after the country’s local appeal court decided to rule against one government policy which had instituted a massive 20% tax on all wagers which are returned to winning customers.

According to one report released by a news outlet, this October ruling made by the Kenyan Tax Appeals Tribunal just invalidated a crucial policy made by the Kenya Revenue Authority which had applied that rather hefty tax to all returned stakes and all winnings alongside net proceeds. This is a rather controversial system which was instituted back in July of last year.

The Kenya Revenue Authority Suspending Licenses for Twenty-Seven Companies

Shortly after being fully instituted, the controversial system had forced many prominent bookies including SportPesa to fully leave the Kenyan sportsbetting market just to avoid having their gaming licenses issued by the Betting Control and Licensing Board authority suspended. Commenting on this news, the Liverpool-based company’s CEO Ronald Karauri said that the massive gross duty of 20% on sportsbetting activities instituted by the Kenya Revenue Authority had made business operations in this African country rather unfeasible.

He also added in his official press releases that with the hefty gross duty active, the company’s business model cannot survive and this was the main reason behind the SportPesa’s decision to leave the market altogether. Shortly after SportPesa left the market, the Betting Control and Licensing Board authority had gone even further and suspended the gaming licenses of twenty-seven companies which in the authority’s words had fallen when it comes to abiding by the newly revised tax duties.

After this move, the Betting Control and Licensing Board’s officials stated that these enterprises which had their licenses suspended would be required to submit new licensing applications once they fully comply with the newly revised tax duties. Commenting on this piece of information, the SportPesa’s CEO Ronal Karauri said that the latest board’s ruling marks a great new development for its company as well as for the entire sportsbetting sector in the country simply because it reverses the hefty tax duty which in his words had rendered the entire sector economically and commercially unviable.

SportPesa Reconsidering Its Future Kenyan Operations

Ronald Karauri finished his official press release by saying that his company will reconsider entering the market again as the hefty tax duty policy had been revised. He also added that SportPesa will remain fully committed to working with Kenyan stakeholders as it seeks ways to renew its gaming license and finally resume its operations in Kenya in the near future.

The United Kingdom-based company emerged on the scene back in 2014 and shortly after its inception, its conquered gambling markets in Tanzania and Kenya. Moreover, the company has also made massive strides when it comes to the British gaming market which saw the company sponsoring several football clubs including Southampton, Hull City, Arsenal, and Everton.

The African-based subsidiary of the company is fully owned and managed by the Nairobi-based Pevans East Africa while its British operations are fully managed from the company’s Isle of Man-based office. Despite the fact that SportPesa is one of the relatively newly established companies, it features a great assortment of products available on the African iGaming market.

Kenya announced new gambling regulations, which includes putting a stop on all gambling advertising outdoors and banning most types of gambling ads on social media.

Kenyan lawmakers decided to take severe measures to restrict illegal gambling behavior and their first step towards achieving this goal is setting restrictions in the gambling advertising sector. The gambling industry in Africa has progressed quite significantly in the past few years, and the lawmakers deemed these regulatory actions as necessary.

Fred Matiang’I, Kenya’s Interior Minister, introduced new rules on May 2nd this year and it won’t be long until they come into full effect. It’s expected to happen before the end of May when the promotion of gambling will become totally different then it was thus far.

For example, gambling companies that want to promote their products and services via social media will have to submit their ads first and wait for approval before those ads are actually published. The Betting Control and Licensing Board will be in charge of going through those adverts and giving their approval if they find them appropriate or rejecting them otherwise.

Besides social media, some important changes will be introduced when it comes to TV advertising as well. According to the new regulation rules, television will not be allowed to show gambling adverts between 6 am and 10 pm. The endorsement by celebrities will be forbidden as well.

When it comes to outdoors gambling advertising, those actions will also be prohibited. This ban refers mainly to promoting gambling via billboards, although ads on sports betting shops’ windows are still questionable.

The gambling advertising sector is very important, and Kenya is not the only country to realize that. Italy, the UK, and Sweden also took some measures in order to improve these regulations and put an end on unwanted actions when it comes to gambling adverts.

Gambling Restraints

Fred Matiang’I commented on the recent restrictions made in his country. He emphasized the importance of proper behavior in the gambling industry since the lack of it can lead to some serious problems. This is especially relevant for young adults who are gullible and whose lives can be endangered in many different ways.

Matiang’I promised that this step is only the beginning of improvements in this sector because nothing can compare with young lives of Kenyan people. He also stated that he plans on carrying through the recent prohibition of gambling. He’s concerned about the high rate of young people who bet, not only in Kenya but all across Africa. There are about 76% wagering young people in Kenya, and approximately 1 million people were not in positions to repay their debts which is why they were put on a blacklist.

The deadline for complying with the latest restrictions is June 30th. In case locally active gambling companies fail to comply with those rules, their business will be in jeopardy, according to Fred Matiang’I.

This online gambling ads restriction is not Kenya’s only effort to improve the situation in the gambling sector. They’ve also revived a discontinued 20% tax on gambling winnings, and now they’re waiting for the court to make the final decision.