Kenya Wants to Impose 10% Excise on Sports Betting Stakes, MP Suggests 30%

The Treasury Cabinet Secretary in Kenya, Henry Rotich, has announced the decision to impose a 10% excise duty on sports betting stakes. The main purpose of such measures is stronger protection…

…of vulnerable groups. However, the decision encountered some opposing opinions, particularly from the MP, who hoped that the suggested taxes would be 30%.

Decrease the Negative Social Effects

The growing number of states, not only in Africa, but worldwide, have been implementing the same or similar measures to level-up protection of consumers and reduce the potential issues. Commenting on the decision, Rotich said as follows:

“Betting has become quite spread and its expansion has had negative social effect particularly to the youth and vulnerable of our society, and in order to curtail the negative effect arising from betting activities, I propose to introduce excise duty on betting activities at 10 percent at the amount staked.”

The Tax Should Have Been Higher

On the other hand, Ndhiwa MP, Martin Peters Owino, disagreed with the CS’s wagering allocation. The MP expressed his disappointment with such a small percentage, adding that it won’t make any significant change regarding gambling issues. He declared as follows:

“I am disappointed of taxation, betting it has negative social effect for our young people and as National Assembly, we suggested taxation should be 30 percent but today I was surprised the minister only increased by 10 percent, that will not cure the menace. Gambling has destroyed our society and we cannot continue raising our children through guess work. I am so unhappy with the position of the minister where he has taxed only 10 percent… he should have taxed more as he did with beer and cigarettes.”

New Set of Rules for Gambling Ads

Another common and increasingly popular measure of protection is the regulation of gambling ments. According to the strategies announced at the beginning of May, the plan suggests a total ban on social media and outdoor advertising. The operators will be required to…

…seek approval from the regulator and they will be obliged to include a warning message. This should constitute a third of the actual advert. In addition to this, the broadcast of such content will be strictly prohibited between 6am and 10pm. What’s even more, celebrities are also not allowed to participate in any campaigns of such nature, due to their significant influence. Even though the measures were practically on the brink of acceptance…

…the implementation itself was postponed. One of the main reasons for that was a lawsuit against the Betting Control and Licensing Board (BCLB) filed by Kamau Wanjohi, better known as MC Moreydoc. He pointed out that such prohibitions would significantly affect his income.

Source:

“Kenya Introduces 10% Excise Duty on Sports Betting Stakes”, Narayan Niji, europeangaming.eu, June 17, 2019.