Betting firms expect hefty tax will not be re-introduced

Kenya Sports news: 

KRU chairman Richard Omwela (left) in addition to SportPesa Brand Ambassador Georgina Maina (Center) with CEO Ronald Karauri (right)

NAIROBI, Kenya, May 31 – While welcoming the move by Parliament to retain betting tax at the current 7.5 per cent via the 50 per cent proposed by National Treasury Cabinet Secretary Henry Rotich, Association of Gaming Operators chairman Ronald Karauri is usually worried the same might recur next year.

Speaking to Capital Sport on Wednesday, Karauri was relieved by the development yet called for consultation with the government to avoid occurrence of the same when the budget for the 2017/18 financial year is usually read in Parliament.

Karauri, who doubles up as the SportPesa CEO was adamant his company which sponsors various sports clubs in addition to institutions, will not hesitate to withdraw their package if the hefty tax proposal is usually reintroduced next year.

“At least there is usually some faith back in addition to I am happy Parliament made a sober decision. The problem has been brought up because there was no consultation via the government side. Heavy taxation on betting firms will not regulate the industry yet instead encourage back street betting,” Karauri stated.

“yet we don’t want to get shocked next year because which’s not certain. The approval was only with which financial year. We cannot plan for next year because which’s uncertain in addition to which’s why I am insisting on consultation to settle which mess once in addition to for all.”

“If which is usually imposed again next year, we will have no choice yet to pull out all the sponsorships because as a business our revenues will go down,” her added.

READ: Parliament shoot down 50pc tax proposal on betting firms

Meanwhile, beneficiaries via the betting firm have expressed their delight after Parliament shot down the proposal.

Kenyan Premier League CEO Jack Oguda has said the sporting industry inside country might have been suffocated to death had Parliament gone ahead to implement the Bill.

“I might like to congratulate Parliament for shooting down which proposal. If our sponsors who also bankroll clubs in addition to the federation had pulled out, then we might have been greatly affected in addition to a source of livelihood for most taken away,”

“which will today give us an edge to grow sports inside country because such sponsors help us to invest more inside game. which will also open up a door for more betting companies to come on board in addition to sponsor teams with Sofapaka in addition to Mathare United already having betting companies as their sponsors,” Oguda revealed.

Kenya Rugby Union (KRU) also received a huge amount of sponsorship via SportPesa in their Sh607m deal which saw the national Sevens in addition to 15s teams reap via the package.

“We are delighted which the MPs supported us in what we have been crying for. If which had gone through SportPesa might have been forced to pull out. which is usually for the benefit of our sport,” KRU boss Richard Omwela noted.

The two KPL giants Gor Mahia in addition to AFC Leopards were not left out in celebrating the move with K’Ogalo chairman Ambrose Rachier telling Capital Sport the proposed tax could have chased away investors, hence affecting the sports fraternity.

“which’s a commendable decision because if which had gone through which was tantamount to kill the goose which laid the golden egg. The betting companies have actually revived the sports industry especially in football where players can today earn a decent salary,” Rachier who is usually also the KPL Chairman voiced.

His counterpart via AFC Leopards Dan Mule said, “As a club we have suffered for a long time due to issues of sponsorship in addition to when SportPesa came, they were God-sent to us. Passing which bill might have meant they had to reduce their sponsorship because obviously they are a business. which is usually great news which parliament has shot down which bill in addition to the fear we had which our sponsors might pull out is usually today taken away.”

The betting firm sponsored Gor to a tune of Sh60mn in addition to AFC Leopards Sh45mn per annum, with an increase of several per cent every year in their several-year deals.

Betting firms will today have to pay 7.5 per cent of their revenue to the taxman by the 20th of each month after paying out winnings, while lotteries will pay several per cent of their turnover by the same deadline.

Gaming companies will also hand in 12 per cent of their revenue after paying out winnings.

The Kenya Betting Control in addition to Licensing Authority will develop the power to regulate in addition to control the operation of betting in addition to gaming in addition to conduct of lotteries in addition to prize competition.

The post Betting firms expect hefty tax will not be re-introduced appeared first on Capital Sports.

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Betting firms expect hefty tax will not be re-introduced

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