Betsson’s Brand Betsafe Shut Down in Kenya!
Betting firm Betsafe has pulled out of the Kenyan market. This comes after the operator sent an official notice to it’s customers informing them of the it’s decision to cease gaming activities in Kenya.
The statement read in part, “We regret to inform you that Betsafe Kenya will cease its operations effective 14 May, 2024.” said Mr Sudi.
The company further informed it’s customers that their existing account balances will be refunded to their M-Pesa accounts by the 21st of May 2024.
Betsafe Chief Executive Officer, Victor Sudi confirmed the announcement stating that the company had ceased operations in the Kenyan market effective May 14, 2024. He further said that its employees would be left jobless following the pronouncement.
The firm is the latest to pull out of the market, in what is seen to be linked to excessive taxation, which in the past has led to the closure of other players, such as Hollywood Bets.
Read Also: Unveiling the Future of iGaming at GAMING TECH SUMMIT AFRICA 2024
Betsafe opened shop in Kenya in December 2020 through Bet High Kenya, the Kenyan subsidiary of Betsson.
Betting companies are taxed at a rate of 15 per cent on gross gaming revenue, in addition to paying a corporate tax of 30 per cent on profits. The companies are also required to pay income tax, in addition to annual licensing and compliance fees.
As well as targeting betting companies, the government has also targeted gamblers through taxes on bets and winnings.
The Kenya Revenue Authority (KRA) takes 12.5 per cent of every bet placed, in addition to a 20 per cent withholding tax on every winning bet.
There is also a proposal in the Finance Bill, 2024 to increase the tax on betting stakes to 20 per cent and as well introduce VAT at the rate of 16% on gaming as the government seeks to reduce the appeal of betting.
