A person betting his phone.[Photo/hapakenya]
The 35 per cent imposed on betting will stand after the High Court dismissed a suit challenging the levy.
Justice John Mativo Thursday ruled that Pevans East Africa, which owns SportsPesa and Bradley/Pambazuka National lottery, which had challenged the law, failed to disclose that there was a pending case on the same issue.
The firms, through their lobby Association of Gaming Operators, said the tax would kill mainstream firms and pave the way for underground players who will be difficult to control and regulate.
According to Treasury CS Henry Rotich, the tax is meant to curb the rapid growth of online gambling, which hurts the young and vulnerable generation, and raise cash to fund sports, culture and the arts.
“The multiplicity of actions on the same matter between the same parties even where there exists a right to bring the action is regarded as an abuse,” said Justice Mativo.
Even though the two firms filed their cases separately before they were later consolidated into one, the judge pointed out that the suits simply arose from the same set of facts and circumstances hence sought similar reliefs.
“Even where a party brings a case to the court and is aware of the existence of similar or previous litigation, the party has a duty to bring such information to the court so as to help it avoid rendering conflicting decisions on the same subject,” said Justice Mativo.
Treasury secretary Henry Rotich had originally proposed raising the tax rate to 50 per cent to curb the rapid growth of gambling.