In the latest escalation of the battle between the firms and the taxman, the Kenya Revenue Authority (KRA) has asked the Betting Control and Licencing Board (BCLB) to suspend SportPesa and Finix Casino’s trading licences and paybill numbers.
The KRA wrote to BCLB on November 8, just weeks after the High Court in Kakamega ordered the firms not to deduct the 12.5 percent tax on betting stakes.
SportPesa’s licence should be suspended, according to the KRA.
The court’s decision provided punters on the SportPesa and Finix Casino platforms with temporary relief, but it also put the two companies on a collision course with the taxman.
The KRA claims it has challenged the Kakamega High Court order, and that additional orders have been issued requiring the companies to make provisions for the excise tax for August.
“Both taxpayers have not complied to the court order despite our reminders dated September 29, 2023,” Weldon Ngeno, Commissioner for Domestic Taxes, said in the letter to BCLB’s chairperson Jane Makau.
“We hereby request you to kindly but urgently suspend all trading licences and pay bill numbers for SportPesa and Finix Casino until further notice.”
However, BCLB has not implemented KRA’s request, with punters continuing to deposit funds into their accounts using the paybill numbers of the two companies.
SportPesa temporarily exited the Kenyan market in October 2019 after a lengthy legal battle with the KRA over claims of unpaid taxes.
The company also cited an unfair tax regime, but it made a comeback in 2020 after Milestone Games Limited acquired the SportPesa brand name from Pevans East Africa, which pioneered sports betting in the country.
Finix Casino is the other gaming company that was served with a High Court ruling in August ordering them to stop deducting 12.5 percent from punters’ betting stakes on their sites.
The 12.5 percent excise tax means that for every Sh100 wagered, the KRA takes Sh12.50. This is in addition to a 20% withholding tax on all winning bet slips.
