Kenya lottery operator challenges proposed hike in tax

Bradley Trading, in which online sportsbetting operator SportPesa is believed to have a major shareholding, has gone to court to challenge the Kenyan Treasury Cabinet Secretary’s proposal to raise industry taxes, across the board, to a prohibitive 50 percent (see previous reports).

Bradley Limited, operator of the Pambazuka National Lottery, filed a claim this week in which it disputes the Treasury Cabinet’s powers to review taxes in the industry, saying those powers lie with the betting control and licensing board.

“The first respondent (Treasury Cabinet Secretary Henry Rotich) acted without jurisdiction and was not authorized to take the administrative decision and the budget proposal in the budget statement with respect to increase taxation rates for the betting, lotteries and gaming industry,” papers filed with the court read.

President Uhuru Kenyatta, attending the launch of an information portal that allows all Kenyans to view the progress and investments made by the Government over the past four years, noted the importance of controlling the industry but invited industry players to engage and hold further discussions with the relevant government organizations.

“I know there is a big cry in the gaming industry because of the 50 per cent tax but we can sit down and engage with the affected parties,” Kenyatta said.

“We were very concerned about betting among school-goers so we made it difficult for people to bet. We want people who bet to have their money go to constructive projects through tax.”

Rotich proposed taxes be raised to 50 percent across wagering verticals from a betting tax of 7.5 percent, lottery tax of 12 percent and gaming tax of 15 percent.

Related and similar