Connect with us

Africa

Kenya to Reimpose 20% Tax on Wagering Stakes

Published

on

Reading Time: 2 minutes

 

The Kenyan betting and gaming sector has encountered a major fiscal hurdle, as the country’s government reimposes a 20% tax on wagering stakes as well as doubling its taxation of foreign tech firms.

Publishing the 2022 Finance Bill, the Treasury detailed that the 20% tax rate would be reintroduced, just under two years after it was abandoned in 2020 after substantial criticism from the Kenya Betting Control Board (BCLB).

Described by the BCLB and operators active in Kenya at the time as a “market killer”, the 20% taxation saw several betting firms depart the country such as Betin and SportPesa – exacerbated by an additional 20% tax on player winnings – although brands such as Betsson’s Betsafe have since found success in the market.

Kenya’s Treasury Cabinet Undersecretary Ukur Yatani stated his intent last year to reintroduce the 20% tax rate, and the Finance Bill has been submitted to the Departmental Committee on Finance and National Planning after its first reading.

As well as raising the tax on stakes, the Kenyan Revenue Authority (KRA) has proposed to increase digital tax service (DST) to 3% of the gross value of online transactions in the financial year, seeking to take advantage of an increasingly digitised economy.

The current DST stands at 1.5% and will increase from July onwards. Although predominantly targeting firms such as Amazon and PayPal, the raise could have an added effect on the betting and gaming industry, due to the impact of revenues of solution, software and payments providers.

Kenyan authorities are targeting increased revenue via the tax rate, with the current 1.5% rate currently projected to generate around Sh13.9 billion by June 2024, with the tax levied on digital content provided by international companies such as music, games, films and e-books.

Writing in the Finance Bill 2022, Ukur Yatani explained: “The Third Schedule to the Income Tax Act is amended by deleting the expression ‘one-point-five percent’ appearing in paragraph 12 (digital service tax rate) and substituting.”

Continue Reading
Advertisement

Africa

Tanzania Gaming Board Warns Families About Risks Posed by Betting on PlayStation Games

Published

on

tanzania-gaming-board-warns-families-about-risks-posed-by-betting-on-playstation-games
Reading Time: 2 minutes

 

The Gaming Board of Tanzania (GBT) has warned parents about the risks posed by betting on PlayStation games, urging families to take action.

Last week, Daniel Olesumayan, Acting Director General of GBT, addressed the issue during a meeting with media editors organised by the Treasury Registrar’s Office.

The gathering aimed to increase awareness about gambling activities and clarify the GBT’s regulatory responsibilities. Olesumayan stressed the importance of keeping children away from gambling, highlighting that it is primarily the parents’ duty to supervise their children’s gadget usage.

“As parents, we must protect our children. It is important to track how they use gadgets intended to stimulate their minds. PlayStation games turned into gambling must only operate in board-approved locations,” he said.

The growth of Tanzania’s gambling industry is evident, with the GBT registering 62 companies and issuing a remarkable 8549 licenses in the 2024/25 financial year.

This number includes licenses for various activities, such as the National Lottery and sports betting, with some companies holding multiple licenses to operate different types of gambling across various locations.

“The sector’s tax revenue surged by 97 percent, from Sh131.9 billion in 2020/21 to Sh260 billion in 2024/25,” Mr Olesumayan said.

He also noted that the ability to place bets as low as Sh1000 has contributed to the impressive growth.

Even with recent advancements, the GBT still faces significant challenges, particularly with illegal slot machines that operate without registration. These machines often attract children, posing risks not only to minors but also to the integrity of the gambling sector.

To tackle these issues, GBT is looking to the future with plans to utilise technology for better management of the industry and also enhance the skills of staff for more effective oversight. The regulator has also established more zonal offices and recently banned foreigners from operating slot machines.

Additionally, the board is set to launch a nationwide responsible gaming campaign aimed at educating young people about the dangers of problem gambling and promoting safer gaming habits.

The post Tanzania Gaming Board Warns Families About Risks Posed by Betting on PlayStation Games appeared first on European Gaming Industry News.

Continue Reading

Africa

Ghana Gaming Commission Introduces Mandatory Biometric Verification

Published

on

ghana-gaming-commission-introduces-mandatory-biometric-verification
Reading Time: 2 minutes

 

The Ghana Gaming Commission has introduced a significant change to the gambling industry by mandating biometric identification for every bet placed within the country. This new rule applies to all forms of gambling including online and physical sportsbooks, casinos and promotional games. Alongside recent tax reforms, this measure represents a strong move toward modernising and securing the gambling landscape in Ghana.

Gambling operators are now required to integrate their platforms with the National Identification Authority’s (NIA) database. Every player must verify their identity using fingerprint or facial recognition technology both at the point of placing bets and when claiming winnings. The only acceptable form of identification will be the Ghana Card, issued by the NIA.

According to Emmanuel Siki Quainoo, the acting commissioner of the Gaming Commission, this initiative aims to protect the industry from criminal misuse and enforce stricter responsible gambling measures. It is designed to slow down betting activities, allowing players to make more thoughtful decisions regarding their gambling behaviour.

Operators have a strict timeline of just one month to fully implement and test these biometric verification systems. Non-compliance could result in suspension of licenses or refusal of renewals, as the Commission has pledged to enforce these regulations rigorously without exceptions.

The primary goals behind these updated regulations are to prevent fraud and stop underage gambling. Additionally, these measures aim to increase transparency in the gambling industry, which has been scrutinised over possible money laundering and unmonitored cash flows. By associating all gambling transactions with verified biometric data, authorities can more effectively monitor and identify irregular activities.

The mandatory biometric checks also enhance responsible gambling protections. Regulatory bodies can monitor dangerous betting behaviors, impose limits on spending, and provide exclusion options for self-excluded players. This policy is part of a larger national digital initiative that uses identity-based verification across multiple regulated sectors.

The post Ghana Gaming Commission Introduces Mandatory Biometric Verification appeared first on European Gaming Industry News.

Continue Reading

Africa

QTech Games recruits Agatha Wanjugu as Sales Manager for East Africa

Published

on

qtech-games-recruits-agatha-wanjugu-as-sales-manager-for-east-africa
Reading Time: 2 minutes

Leading distributor for emerging markets announces the fulfilment of its new dedicated role for East Africa, based in Kenya

QTech Games, the leading game aggregator for all emerging markets, has recruited Agatha Wanjugu for the new role of Sales Manager for East Africa, as it continues its concerted push into the African market.

Based in Kenya, Agatha joins QTech Games after successful stints at iGaming Afrika, where she served with distinction as Business Development Manager – and, more recently, Pragmatic Play where she spent several years as Account Manager for Africa. In this previous position, she routinely proved herself in both account management and business development capacities, building and maintaining enduring client relationships, collaborating with sales forces and technical departments to optimise the overall customer experience.

This experience has seen Agatha establish a reputation as a natural leader with a communicative and consultative approach. Her igaming insights and recommendations for the region have helped deliver on revenue targets and inform strategic guidance, advancing the sales cycle and populating its pipeline with new leads.

Now Agatha brings those transferable skills to bear at the sector’s leading aggregator for developing markets, where she will be responsible for managing and growing QTech’s existing partners in East Africa.

QTech Games CEO, Philip Doftvik, said: “We’re thrilled that Agatha is already underway in her new role at QTech Games, as we train our sights and broaden our scope across East Africa. She is a precocious and natural sales lead and account manager, with the ability to develop client growth or retention strategies.

“She’ll be a true asset to both QTech Games and all our clients, as we grow in Africa to make it a substantial part of our total revenue mix. We have high growth ambitions here in the coming years. Ultimately, we want to dominate and build a stellar and agile brand in the region.”

Agatha Wanjugu added: “I’m excited to be starting at QTech Games, and really feel they have given me the support to put my shoulder to the wheel for expansion in this bubbling and evolving marketplace.

“I’ll be responsible for managing QTech’s existing East African partners, alongside stewarding our expansion into neighbouring local territories. I’ve always based my business relationships on the ability to add value. Working with QTech, I’ve not only found a string of products that complement the different igaming verticals but also a strong, experienced team who are client-focused and always eager to make it work for the client.”

The post QTech Games recruits Agatha Wanjugu as Sales Manager for East Africa appeared first on European Gaming Industry News.

Continue Reading

Trending