Sports betting company, SportPesa has cancelled all sports sponsorships in Kenya with immediate effect following delays in renewing its licence and suspension of PayBill numbers.
In a statement on Friday, SportPesa said the gaming industry has been operating in an extremely challenging business environment for the past couple of months.
It added that the move to suspend its PayBill numbers has brought about immense pressure on the business necessitating a re-evaluation of some plans.
“Sportpesa as a business has been subjected to punitive measures by regulators such as delayed license renewal and the suspension of PayBill numbers with these actions considerably reducing the level of business operations,” read part of the statement.
“In light of these developments, we regrettably wish to announce that due to the uncertainty of this situation Sportpesa will be cancelling sports sponsorships effective immediately. All clubs and partners will have received notices as provided for in their contracts,” the statement said.
“Sportpesa is passionate about sports development in the country and this decision was regrettably arrived at haltingly and after a lot of deliberation and thought,” the statement added.
SportPesa insisted that it has been compliant with all the statutory and regulatory requirements.
“We have always been compliant with all the Statutory and Regulatory requirements. We are a law-abiding organisation. For now, we remain positive that the current situation will be resolved amicably and urgently, and we continue to seek the goodwill of all actors towards normalising the environment for the gaming industry,” its said.
SportPesa sponsors the Kenya Premier League, Gor Mahia, AFC Leopards and Kariobangi Sharks.
Last month, the Kenya Revenue Authority (KRA) cleared 10 betting companies whose licences had been suspended. However, SportPesa and Betin, the leading gaming firms in the country were left out.
Those cleared by the taxman were Betway, OdiBets, Mozzartbet, Ken Bookmakers, Lucky 2 U, Eazi Bet, Kick off, Eastleighbet, Pals Bet and Bet boss.
Interior Cabinet Secretary Dr Fred Matiang’i had suspended the licences of 27 betting firms because they were allegedly not compliant with tax regulations.
Betting industry worth Sh200 billion
The Betting Control and Licensing Board (BCLB) says the betting industry is worth Ksh 200 billion with the projections of hitting Ksh 500 billion by 2050 though the betting companies dispute the figures. According to the government, in 2018, betting firms paid Ksh4 billion cumulatively in taxes contradicting some of the firms’ tax payment statements.
When they appeared before the Senate Justice and Legal Committee late last month, the betting firms protested the continued suspension of the licences, saying the Tax Appeals Tribunal had allowed them to continue operating.
Meru Senator Mithika Linturi said it was regrettable that the ministry enforced the ban despite being served the order issued by the tax tribunal.
“When you look at the papers or documents presented before us, you will be left wondering whether this is a country where people operate outside the law,” he said.
The committee resolved to summon Matiang’i over the issue.
“We want them to tell us why they have decided to treat court orders as tissue paper,” Nandi Senator Samson Cheragei, who chairs the committee, said.
Here is the SportPesa statement:
Hon Dr matiangi should reconsider his decision and give sport pesa second thought because this firms have surpoted many Kenyans
Matiang’i what you doing is not good at all!!God is watching you
government now give us some work now
it’s unfortunate for a country like Kenya to portray to the world that it follows the rule of law when it actually does the opposite. ban sportpesa betway and begin and provide jobs.
This as emerged as the most unfortunate move by government. I used to pay my school fee through betting which is no more, the tax revenue imposed again is against the rights of citizens, it is a double tax indeed. i wish an able..
Matiangi never think of one day becoming Kenyan President. You called trained teachers one day quacks because of lack of TS number due to some arrears in colleges .You also harassed bodabodas and now harassing Kenyans youths. Remember sportpesa have helped more youths to bring out their talents of which the government failed. I also earn daily income through sportpesa and now I’m jobless not even able to educate my children because of you matiangi.
I request for the government to stop spoiling this country by using C’s Fred matiangi with intention of lifting there business in betting companies they own, sportpesa is the only key en future of players in this country sports in Kenya for the first time we have been experiencing abig change also it’s the only way for youths to make employment my question to C’s matiangi is why ayou stressing youths in this county what is your intention???????
matiangi stop disturbing Betting farms. you & ur government have failed to sponsor our football here now instead of helping this guy you just want to demolish without thinking. aaaah am not a proud kenyan due to ur useless decision, anyway am sory to say this.
sportpesa has been greatest lifting company in Kenya making the life of Kenyans easy to live so they should be considered automatically with immediate effect
let the government now learn a lesson, and also face the burden after SPORTPESA has withdrawn sponsorship… let them go and never look back..