Big companies finally had enough of the excessive tax

[fiulpro]

20%? Is this even real ? Most of the companies not related to gambling pay lower than 10% but not the same in Kenya when it comes to the sports gambling. Now the biggest football clubs have joined hands to oppose this rule.

In a bid to raise cash for the financial year amid the struggles caused by the Covid-19 pandemic, Treasury Cabinet Secretary Ukur Yattani has reintroduced the tax, which was removed by President Uhuru Kenyatta in July last year.

“Excise duty on betting at 20% of the amount will be wagered,” said Yattani, which would mean that the amount would be levied and passed on to a person who has won on a bet, which according to Yattani would also help discourage betting in the country.

But AFC Leopards chairman Dan Shikanda and Gor Mahia chairman Ambrose Rachier argue that the tax will negatively affect betting companies supporting local teams and lead to the withdrawal of their much-needed sponsorship.

Both Shikanda and Rachier explained that betting firms have consistently supported football in the country, cumulatively delivering Sh1.6bn (US$14.8m) from 2016 to 2020, and therefore should not be punished through stricter tax measures.

In the statement, Shikanda and Rachier said the return of the tax would cause current league sponsors BetKing to withdraw their sponsorship, explaining that the excise tax was one of the reasons why SportPesa left the Kenyan market in 2018.

“The enactment of the 20% excise tax will unequivocally rule out continued sponsorship of football clubs across all tiers (National Super League, Division 1 and County Leagues), with the net effect of rendering the operations of most of the league teams unsustainable,” the joint statement read.

Now this is not just :
Unsustainable and unreasonable but according to them "ill timed", their whole sponsorships will be effected. This high taxation will also cause gamblers sore.

During pandemic the gambling is a huge income source for them and the government alike. Therefore I do believe that either they should have done it slowly or done it after the pandemic.

They are now asking the government to reconsider it.
{This is exactly the kind of news we need because this shows how the democratic countries can move forth and oppose such things, not always the tax is legit if served by the government during such times}

What do you think ?

https://www.gamblinginsider.com/news/12178/kenyas-biggest-football-clubs-join-forces-to-oppose-new-tax-rules

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[Yogee]

In a bid to raise cash for the financial year amid the struggles caused by the Covid-19 pandemic, Treasury Cabinet Secretary Ukur Yattani has reintroduced the tax, which was removed by President Uhuru Kenyatta in July last year.

I understand that people can become emotional everytime they see tax hikes or new taxes to be implemented but can we have the numbers before and after the tax  was removed?

The proposal would tax the gamblers and not the casino or bookie. These companies thinks it would affected indirectly since one of the aim of the law is to discourage players but does that really stop them from gambling?

[Woodie]

One effect of the high taxes: Maybe the high taxes a meant to discourage Gamblers from playing a lot because this pandemic can turn users into addicts and this is one way to slow the process down.

The other effect from these high rates is going completely anonymous which means a missed opportunity for the government to collect revenue from gamblers as they will find alternative places to play the games they love.

[AmoreJaz]

In a bid to raise cash for the financial year amid the struggles caused by the Covid-19 pandemic, Treasury Cabinet Secretary Ukur Yattani has reintroduced the tax, which was removed by President Uhuru Kenyatta in July last year.

I understand that people can become emotional everytime they see tax hikes or new taxes to be implemented but can we have the numbers before and after the tax  was removed?

The proposal would tax the gamblers and not the casino or bookie. These companies thinks it would affected indirectly since one of the aim of the law is to discourage players but does that really stop them from gambling?

if you are a regular gambler, the tax hike won't matter to you. you will complain at the start but you will still keep doing what you're doing afterwards. it may pose as a discouragement but they will only feel such hike at the start, but later on, they will go back to their normal routine.
as long as the government is putting the tax into good use, then, maybe people will understand such move. it may be hard at the start but there will be good consequences afterwards that people can benefit from. they can always find sponsorships that will be willing to face this change.

[Darker45]

I guess the government will have to weigh on the primary purpose of the tax increase and its unintended consequences not just on gambling itself but also on other things such as the sustainability of football leagues in the country.

They will have to set priorities and do a careful study as to the practicality of the policy and its overall impact. There is a possibility that instead of aiming to raise cash, the policy would backfire and would only significantly decrease gambling revenue.

Also, gamblers might end up reducing their gambling expenses, or perhaps many of them might shift to illegal gambling for the sake of shirking high tax responsibilities. As a result of a dwindling income, gambling businesses might close shop or leave the country.

If the policy is to discourage gambling, I doubt it will be that effective unless efforts against illegal gambling are also intensified at the same time.

[uneng]

Excessive taxes don't discourage gamblers from betting, it actually encourages them to find decent alternatives to keep betting without abuses from governmental sectors. News like this are bad for national gambling companies and for the state, since their tax income from gambling is probably going to decrease after this is implemented, but at same time these news are good for crypto gambling platforms which are probably going to have new users signing up very soon. Overtaxation is never the solution for anything. I don't know why leaders and authorities keep forcing on this approach.

[Wexnident]

I guess they're desperate enough. The wrong move here is that they made an instant jump, instead of gradually increasing it. This could technically damage the process of how casinos perform and operate their finances, after all, requiring them to do the calculations all over again. Gradually increasing them could send the warning signs, as well as enough time for casinos to actually adapt to the changes, much so that they won't actually damage their own operations. Though I do agree that 10% is very low though, doubling it all of a sudden is still not that of a good move.

[YOSHIE]

I agree with those who oppose the government in applying excessive taxes, sometimes I also don't agree with what the government is doing to gambling companies, especially casinos and sports betting sites.
they are too much in limiting the activities of the people, taxes are raised, but gambling companies and players are limited, this is bad for many gambling companies and bettors.

I've also read about taxes on gambling companies and also to gambling winners, what the heck, it's all screwed up, the government should have other alternatives/solutions to improve state finances, not pressure companies and gambling players, in taxation.

Indeed, the world of gambling is currently the choice of many people, but the government should not take the opportunity and profit against them, the government must think professionally in solving financial problems, not vice versa using gambling companies as the spearhead of income.

[ralle14]

but at same time these news are good for crypto gambling platforms which are probably going to have new users signing up very soon.

Even with crypto gambling the tax is still high at 15% it's an okay alternative for high rollers but not the best for small players because with additional fees (from the exchanges, casino, etc) you might as well bet locally since the difference is negligible.

I kind of agree that some gamblers will still gamble regardless of the tax changes but the biggest loser here is the bookies since they'll most likely lose their players and just found out that Sportpesa was like the top bookie in Kenya. I wouldn't be surprised if the same thing happens with BetKing in the near future.

If the main goal was to stop gamblers they should've approached the issue differently like putting gambling limits instead of just flat out increase on the winnings.

[ethereumhunter]

One effect of the high taxes: Maybe the high taxes a meant to discourage Gamblers from playing a lot because this pandemic can turn users into addicts and this is one way to slow the process down.

The other effect from these high rates is going completely anonymous which means a missed opportunity for the government to collect revenue from gamblers as they will find alternative places to play the games they love.

I think the government will not apply high taxes for the casino and a gambler because it will make them feel worried about paying those taxes. It is right that the government wants to prevent the addiction, but they do not want to make them feel it is difficult to pay the taxes. But if the government really want to apply high taxes, the casino and the gambler must follow their government. Otherwise, they can not still play gambling.

[bittraffic]

One effect of the high taxes: Maybe the high taxes a meant to discourage Gamblers from playing a lot because this pandemic can turn users into addicts and this is one way to slow the process down.

The other effect from these high rates is going completely anonymous which means a missed opportunity for the government to collect revenue from gamblers as they will find alternative places to play the games they love.

I think the government will not apply high taxes for the casino and a gambler because it will make them feel worried about paying those taxes. It is right that the government wants to prevent the addiction, but they do not want to make them feel it is difficult to pay the taxes. But if the government really want to apply high taxes, the casino and the gambler must follow their government. Otherwise, they can not still play gambling.

There is a way to go around the law when the government is tightening to get as much as they want from the bettors. It's not just about discouraging gamblers but it's also making them money. They know that 20% isn't really going to discourage half of the gambler's number in the country.

Online casinos might just be the next. They know there is big money to collect from cryptocurrencies which they know is the future.

[crzy]

One effect of the high taxes: Maybe the high taxes a meant to discourage Gamblers from playing a lot because this pandemic can turn users into addicts and this is one way to slow the process down.

The other effect from these high rates is going completely anonymous which means a missed opportunity for the government to collect revenue from gamblers as they will find alternative places to play the games they love.

I think the government will not apply high taxes for the casino and a gambler because it will make them feel worried about paying those taxes. It is right that the government wants to prevent the addiction, but they do not want to make them feel it is difficult to pay the taxes. But if the government really want to apply high taxes, the casino and the gambler must follow their government. Otherwise, they can not still play gambling.

This will always depend on every government and some countries are still applying a low tax on casinos and to gambler if it's considered as a capital gain tax. We have so much time to gamble online now because of this pandemic and the government are also aware of that. The government don't want to lose yourself because of gambling, and imposing a huge tax is not a solution to that maybe the government is just trying to collect more funds since most of the countries now are drowning into debt because of this pandemic.

[Lorence.xD]

So you're supporting big businesses that continuously oppress the people in the lower class? I don't think your fighting for the right side, I think that they have to answer to taxation because they make a lot of money by exploiting workers and resources.

[robelneo]

During pandemic the gambling is a huge income source for them and the government alike. Therefore I do believe that either they should have done it slowly or done it after the pandemic.

They are now asking the government to reconsider it.
{This is exactly the kind of news we need because this shows how the democratic countries can move forth and oppose such things, not always the tax is legit if served by the government during such times}

What do you think ?
 

During a pandemic, online-only gambling casinos are making a huge profit and the government is making opportunity of shifting their taxes to online gambling, 20% is such a huge percentage, companies although making profit during this pandemic is also employing a lot of people and competition is stiff among gambling casinos.
You are right they could have done it after the pandemic because the pandemic is almost over now that many countries are being inoculated and the government should assess if the 20% taxes could harm the operation of the gambling industry.

[Oshosondy]

What do you think ?

That is too much, but there are many online casinos and other gambling sites you can gamble without even having kyc not to talk of taxing. I see this move as a way I will not use any gambling site in my country. Although currently no tax is implemented on gamblers in my country, only the gambling company will have to pay taxes, not gamblers. That is the reason I still like to gamble using my local fiat, but ones such move is implemented, I will prefer to use crypto gambling sites that do not demand for KYC and yet no taxing of gamblers.

[NeuroticFish]

20%? Is this even real ? Most of the companies not related to gambling pay lower than 10%

It's just a call to make the state/govt look better in the eyes of the voters.
Clearly the pandemic increased the costs for the state. And they have to get the extra money from somewhere. And the common tax payers will feel better if others (the big bad companies) have to pay even more.

But don't worry. The big companies have all they need in order to hide their income in a way they don't have to pay taxes.
I've read that Amazon officially has less than ~6% income officially, since they "invest a lot". Interestingly it's known that most of such companies' income flies away to countries with low/no tax.

I guess that with some ingenuity, the clubs will also find their way to elude this.

[blockman]

They really have to reconsider this high taxation that they're imposing to casinos or gambling related companies. 20% is such a huge amount for a tax to pay but I think that they have to hear the concern of these companies and look out for a possibility that they're going to transfer their main operations. If that happens, then there's no longer tax to pay for them because they've never open their ears to hear their concern. It's going to be a loss for the government if they won't have any dialogue with them. If they see that there's such a huge money going in and out to these companies, it's because they're on the right niche and adding some taxation, that's really out of hand, they should've at least consult first what these companies think.

[coin-investor]

20%? Is this even real ? Most of the companies not related to gambling pay lower than 10% but not the same in Kenya when it comes to the sports gambling. Now the biggest football clubs have joined hands to oppose this rule.

Sports gambling is one of the active activities during a pandemic and they are making it their cash cow, imagine 20% but what if sports betting weaken, it's not always a season every year, they could kill the sports betting industry if they insist on putting a very high 20% on sports betting industry, they are right to protest it, they should do a consultation first, before imposing.

[Obito]

Those taxes aren't that a lot for these people because as you have said, they are big businesses and I don't think that it's worth supporting them because they are making money out of us people of the working class, remember to not patronize these people because they only care because you make them money. I think taxation to these companies are a good thing.

[YinShuiSiYuan]

Those taxes aren't that a lot for these people because as you have said, they are big businesses and I don't think that it's worth supporting them because they are making money out of us people of the working class, remember to not patronize these people because they only care because you make them money. I think taxation to these companies are a good thing.

The fact that gambling companies earn is normal.
Everyone who wants to play decides what he want to do with his money.
In my opinion, taxes should be lower because that would simply make casinos take less to cover their own costs and gambling would have a higher probability of winning.