Big industry players fight over billions in gambling – Daily Nation

Saturday April 22 2017

A man gambles at Githurai estate in Nairobi on November 27, 2015. PHOTO | FILE | NATION MEDIA GROUP

A vicious battle between big industry players and smaller ones based in the countiesfor control of the betting, gaming and gambling sector has been going on even as government seeks to raise taxes of their earnings.

The big companies business model is carried in onlineand mobile platformswhile the small players have slot machines, mostly imported from China and targeting low-income earners.

On September 19 last year, the Betting Control and Licensing Board, the market regulator, wrote to all County Commissioners and directed them to mount a major crackdown, confiscate gaming machines and arraign the operators in a court of law.

The owners, fearing that they may be pushed out of business, and indicated they had licences from county governments, quickly moved to court challenging the legality of the regulators letter.

They were issued with temporary orders by Justice John Mativo. The judge directed the government, its officials and agents not to conductany crackdown on business premises where the slot machines are situated. He also directed themnot to suspend the business or close them until the hearing and determination of the suit. The suit is ongoing at the High Court.

The view of the bigger players appears to have been indicated two weeks ago when Mr Ronald Karauri, the chief executive of SportsPesa, arguably the biggest company today in the industry, waded into the debate by lauding President Uhuru Kenyatta for identifying the gambling machines as illegal.

We fully support President Uhuru Kenyattas concerns last Monday over the rising problem of underage gambling associated with illegal gambling machines, he said in press statement.

He went on to say they have previously raised the same concerns with the regulator and county governments constantly requesting them to curb this menace which has tarnished the industrys image and stands to ruin the lives of our children.

He seemed to have been reacting to the Presidents comments, during the launch of the Jubilee administration portal, on the proposed 50 per cent tax announced in the budget and the industry in general.

We were very concerned about the rise in betting especially among the school going children.

This technology has been had a positive impactbut it also had its downside. We felt as responsible government we needed to ensure we needed to make it more difficult for people to bet and those who wanted to bet that that money will go to causes that are social in nature and beneficial,: the president had said.

The president promised to ask Treasury to liaise with parliament to engage the industry players on the taxes but insisted they will not come too low.

Mr Sam Kahia, chairman of the slot machinesumbrella body, Kenya Counties Amusement and Gaming Society, said there is need to regulate the industry just like in Tanzania, Zambia and Malawi.

We commit to promote responsible gambling with interest of Kenyans coming first. Remember, Kenyansinvest and are protected by theConstitution. We went to BCLBoffices for licence but they declined so wewent to county offices and obtained licences only for the board to come later and term the operation illegal, he said.

He also claimed the machine operators employ may Kenyans and does not allow underage clients.

Board Chairman Kimani Kungu said the authority has been following the law.

Unscrupulous business people operate gaming premises with Chinese machines whose integrity cannot be verified and most have no importation documents nor evidence of payment of necessary taxes. It is mandatory that imported gaming equipment has to be authorised by Betting Control and Licensing Board, he said.

Kenya Revenue Authority is to impose a 20 per cent withholding tax on winnings

The repeat nominations will now be held on Monday, Tuesday and Wednesday.

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Big industry players fight over billions in gambling - Daily Nation