Sports betting firm SportPesa Kenya has said it will give notice to withdraw all sponsorship deals with its sporting partners from January 1, 2018 citing Finance bill which was signed into law.
“With the new bill coming into effect on January 1st 2018 we want our sports partners to plan accordingly,” said SportPesa CEO Ronald Karauri on Friday in a meeting convened by the Association of Gaming Operators in response to the recent Finance Bill.
President Uhuru signed the Finance Act into law on Wednesday affecting the Betting, Lotteries and Gambling Act (Cap. 131) which increase the tax rates from the currents rates to 35 percent.
As @SportPesa we will be giving notice to clubs and unions that from January 1 we will withdraw all sponsorships.
— Capt. Ronald Karauri (@KarauriR) June 23, 2017
With the new bill coming into effect on January 1st 2018 we want our sports partners to plan accordingly.
— Capt. Ronald Karauri (@KarauriR) June 23, 2017
The law which comes into effect in January 2018, it will impose a tax of 35 percent of gross profits on all gambling.
Currently, they are taxed at 5 percent, betting firms – bookmakers – at 7.5 percent, casino gambling at 12 percent and competitions like raffles at 15 percent.
Teams to be affected include: The Kenya Rugby Union, Football Kenya Federation, the Kenyan Premier League limited and the Kenya Boxing Federation. SportPesa is also the official shirt sponsors of top league clubs – Gor Mahia and AFC Leopards – and also support National Super League side Nakuru All Stars.