Kenya’s Leading Betting Company Closes Operations, Set to Pay All Outstanding Bills

It seems like the proposed increase in excise tax on betting stakes in Kenya might have played a significant role in Betsson’s decision to cease its operations there. Betting companies operate on thin margins, and a substantial increase in taxation could severely impact their profitability. With the potential increase from 12.5% to 20%, the cost of gambling would rise for punters, likely leading to a reduction in betting activity.

The statement from Betsafe doesn’t explicitly cite the tax increase as the reason for their closure, but it’s a plausible inference given the timing. Such tax hikes could indeed make the business environment less favorable for betting companies, prompting them to reevaluate their operations in the country.

Moreover, the additional tax burdens, such as the withholding tax and the 15% tax on gross gaming revenue, further add to the financial strain on these companies. It’s a complex situation where both the operators and the players are affected by regulatory changes and taxation policies.

The closure of Betsafe’s operations in Kenya could also have broader implications for the country’s economy, including potential job losses and the loss of sponsorships for sports clubs like Gor Mahia and AFC Leopards, which were benefiting from their partnerships with the betting company.