Change of mind over sports betting tax

AFTER originally choosing to scrap a 20% tax on betting stakes and winnings, Kenya will now reintroduce it in the next six months citing the health consequences it has on the youth.

Kenyan President Uhuru Kenyatta removed the tax on sports betting stakes and winning last week when he signed the Finance Bill, the Daily Nation reported.

The BBC said the controversial tax was likely why Sportpesa and other gambling companies had to close their doors, as the tax authorities in Kenya said more than $500 000 (R8.5 million) was owed to the state in tax arrears.

The removal of the tax, which the tribunal ruled to be charged to winnings and not stakes, was set to boost the sports betting industry, at least for the next six months.

Cabinet secretary for the national treasury, Ukur Yatani acknowledges the consequences sports betting has on the youth and has said the removal of the tax from the Finance Bill does not mean the Kenyan government has changed its mind.

“Betting activities have dversely affected the social fabric of our society, particularly the youth. In this regard, we wish to reiterate the commitment of the government on taxation of this industry,” Yatani weeted.

“The removal of this tax happened during the committee stage of the bill. Following various consultations in line with the government’s commitment to mitigating against the social vices associated with betting activities, the National Treasury and Planning will be proposing to the National Assembly the reintroduction of excise duty on betting within the next six months,” the statement says.

Gaming Awareness Society of Kenya co-founder Nelson Bwire says the removal of tax on betting stakes protects companies and makes the youth vulnerable to addiction.

The sports betting industry in Africa is seen as a fundamental health problem among the youth on the continent, which extracts $37bn a year from Africa, according to Usiku Games, a Kenyan mobile game company.

It designed #Gamingforgood to counteract the effects of sports betting on the youth by providing games which provide a similar biological effect to gambling, that are gender-exclusive and educational. |