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Players can now enjoy online and mobile sports betting and most operators offer betting via shops or via the growing trend of using mobile and online platforms. Tey have overtaken the casinos due to media advertising and their online and mobile platforms and revenues are said to be huge. Meanwhile a new amendment bill was


charitable purposes – ie: to raise funds for public welfare, sports and at least 25 percent of gross proceeds must go to the charity. Age limit is 16 years.


l Fines for improper use is up to KES5,000 and up to six months imprisonment.


l Society lotteries are permitted for charitable purposes and prizes cannot exceed KES5,000 whilst private lotteries are also licensed.


l Gaming premises – licences issued to authorise operation and management of gaming machines.


l Gaming machines – operating unauthorised gaming machines can result in fines of up to KES5,000 and up to six months imprisonment.


introduced in June 2015. Te Betting, Lotteries and Gaming (amendment) Bill now requires


betting platforms to pay: l Betting tax of 7.5 percent of the GGR, l Gaming tax of 12 percent of GGR and l Lottery tax of five percent of lottery turnover. Tis new monthly tax is expected to boost


government revenues as they cash in on the growing number of players now joining the sports betting sites in particular. Te taxes are to be paid to a ‘collector’


appointed under the Kenya Revenue Authority whilst the bill also introduced a prize competition tax of 15 percent of the total gross turnover. Even though gambling and sports betting is


growing, the sector still suffers from non profit margins due to high fixed costs, technological challenges, lack of regulatory framework and unclear tax policies. Tere are taxes ranging from licensing fees


and income tax but gambling services are excluded from VAT and withholding taxes on winnings are pretty much ignored. In 2012 the parliament amended the Income


Tax Act to tax winnings from betting and gaming which saw a withholding tax of 20 percent on winnings from such activities as from January 2014. Apparently the BCLB now wants the


government to do away with the withholding tax and introduce instead a gaming levy targeting the gross revenues of an operator.


NEWSWIRE / INTERACTIVE / 247.COM P53


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