As the latest African news on betting informs, two rival football clubs in Kenya, AFC Leopards and Gor Mania have joined forces to oppose the reinstatement of a 20 per cent excise tax on betting.
The Kenyan Minister for Finance has reintroduced a betting tax policy during the reading of the 2021/2022 budget. It is the second time the taxation is implemented, after being abolished in July 2020.
Excise tax could drive off the sponsorships
The chairmen of two major football clubs in Kenya, Dan Shikanda and Ambrose Raicher, have published a joint media statement warning local authorities against the policy. The duo stated that the new tax rules would inevitably ward off the existing sponsorships for clubs and the FKF Premier League.
This moment could come as a lethal blow to the Kenyan football league, as it depends heavily on investments from betting companies. Only in the 2016-2020 years, the help received from the bookmakers reached 1.6 billion KES in total.
The sponsorships have also supported the struggling industry amidst the COVID-19 crisis, enabling the 2021 football season to launch.
Three years prior, a major betting company, SportPesa, left the Kenyan market due to the betting tax introduction, leading the industry to financial distress. This situation can happen again, but with more severe repercussions, as the industry is still recovering from the fan-less season of 2020.
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