Gamblers are set for better days ahead with regards to taxing of their winnings, after giant betting firms SportPesa and Betin registered a major win in court.
The Tax Appeals Tribunal has since ruled that only the net winnings should be subjected to the 20% cut, currently deducted from total winnings, in a case that was filed by the two.
The Thursday ruling means that gamers can now keep their stake from being eaten into by the Kenya Revenue Authority (KRA).
Lately, the authority has been deducting the percentage from all the winnings.
Initially, if one placed a Sh200 bet on a game with an odd of 10, and successfully won the bet, all his Sh2,000 return would be subjected to the taxation, leaving him with only Sh1600.
But the tribunal has ruled that only the amount won should be taxed, meaning that the same person will have only Sh1,800 taxed, excluding the Sh200 stake he/she had placed.
Already, some betting companies which are in business have began implementing this rule, while the two giants remain outside the market after they were locked out.
SportPesa and Betin have been locked off operations in Kenya over a tax row with KRA, and have since announced exiting the Kenyan market over unfair working environment.
Their exit has negatively affected a number of local sporting teams which depended on their sponsorship, but they have kept their attempts to make a return alive through the courts.