Gamblers will have to share 20 percent of their winnings with the government henceforth, this is in line with a dictate from the Betting Control and Licencing Board (BCLB).
Betting firms on Wednesday began complying with the rule, among them the BetLion platform, with the money set to be channeled to the Kenya Revenue Authority (KRA).
BetLion on Wednesday alerted its users of the changes, calling for understanding from its clients, and informing them that they will only be receiving 80 percent of their winnings.
“This means that customers will now get 80 per cent of the potential winnings going forward. As a business, we hope that customers continue to engage in responsible gaming. The revised taxation laws are a pragmatic response to a growing and vibrant industry,” said the firm.
The same was confirmed by KRA in a statement, even as some firms raised concerns that this could see their customers earn very less, as the remainder is deducted in taxes.
“Betting companies, are required to withhold winnings at a rate of 20 per cent… this means that if you place a bet and win Sh50,000 you will receive Sh40,000. The balance of Sh10,000 is withheld by the betting company and remitted to KRA,” the tax agency said.
This comes amid an ongoing push and pull between the state and a section of betting firms, whose licenses were recently cancelled and their paybill accounts suspended.