There has been an important proposal from Kenya’s Cabinet Secretary for National Treasury and Economic Planning, highlighting the potential economic advantages of raising taxes on betting in the area.
As the African market becomes increasingly competitive and more stakeholders focus on its potential for expansion, this proposal gains significance.
Focusing on the gaming industry, the proposal suggests an increase from 12.5% to 15%, though there are warnings about possible negative effects on consumer prices.
The industry also expressed concerns about the proposals potentially boosting the black market, which could constrain the regulated market.
Adding to these concerns are other aspects of the bill, such as the possibility of restricting advertising by the gambling industry.
This development occurs against a challenging backdrop for the African gaming sector, as there are worries about the potential rise in gambling-related issues among consumers. Reducing gambling-related problems is a current government priority.
The proposal also suggests raising the tax from 12.5% to 15% for the lottery sector, with a similar increase proposed for prize competitions.
Significantly for the African market, it is proposed that taxes on money transfer services might rise from 15% to 20%, which would increase the financial pressure on gambling operators in the region.
This potential increase follows the government’s ongoing efforts to pressure the gambling industry, with previous indications from Kenya’s treasury about the possibility of raising industry taxes in earlier budgets this year.
Earlier proposals suggested a tax increase from 12.5% to 20%, introduced mid-year to protect young people from excessive gambling exposure.