Kenya Slaps a Uniform 35% Tax On All Gambling Revenues
Like many other countries Kenya is debating the amount of tax to be imposed on online gambling operators. Today saw Kenyan President sign a law that will raise the tax rate to 35 percent of gross profits on all gambling. This is a huge increase from the current status quo. Until now lotteries were taxed at 5 percent casino gambling at 12 percent and betting firms- bookmakers at 7.5 percent.
If you are looking for the positive side of this increase, the original planned tax rate proposed by Secretary for the National Treasury Henry Rotich was 50 percent. The claim made was that online gambling would corrupt the young and vulnerable. The proceeds of gambling would be funneled to fund culture, sports and arts.
To understand the Kenyan gambling market it is important to remember that most gambling is done online. In fact mobile betting is facilitated via financial services like M-Pesa by Safaricon which enables gamblers to place bets, pay off losses and even get their winnings without even requiring a bank account,.
The population of Kenya is 45 million of which industry insiders say around 7 million have registered for dome form of betting services.