Kenya’s largest sports gaming firm, SportPesa, has announced a move to close its operations in Kenya.
The announcement just comes hours after its rival, Betin, announced that it was to fire its employees because their services are not needed anymore
Sportpesa, however, said it would resume operations only if the government will make the environment conducive.
The move comes after the government’s decision to impose a 20 per cent tax on all betting stakes, a move that the firms have cited as damaging on both their customers and treasury.
“Sportpesa is disappointed with the decision by the Kenyan legislature to impose a 20% excise tax on all betting stakes. The tax is based on a fundamental misunderstanding by the Rotich led treasury of how revenue generation works in the bookmaker industry,” read the statement in part.
Sportpesa also stopped the sponsorship of clubs in Kenya after its licence was revoked.
Betin on the other side told the staff on Friday that the firm had been left with no option but to let them go.
“This has been occasioned by the fact that we have not been operational since July 2019 a fact we are all aware of. Management has had several extensive meeting with relevant government entities regarding the company’s license renewal without much success,” the memo dated September 27 stated.