Kenya Considers iGaming Tax Increase

Tax Increases to Hit Betting and Gaming

The Kenyan Cabinet Secretary for National Treasury and Economic Planning has proposed to increase tax on betting and gaming from 12.5% to 15%. The increase also covers lottery and prize competitions as the government wants to get more revenue from the industry.

But industry insiders say the changes will lead to higher costs for consumers and make regulated platforms less attractive. As the African iGaming market gets more competitive, these tax changes will add more hurdles for operators.

Black Market Growth

The industry is worried that higher taxes will inadvertently spur black market growth. Operators fear some consumers will move to black market platforms that offer better deals, and undermine the regulated market. This will be counter to the government’s aim to control the gambling industry and protect consumers.

On top of the tax changes, the bill also proposes to limit advertising by gambling operators. This will further squeeze the industry to get new customers and retain existing ones.

Curbing Gambling Harms

The Kenyan government wants to reduce gambling related harms especially among the youth. This is in line with its overall objective to reduce social risks of gambling and get more revenue through stricter regulations.

Another big one is the increase in taxes on money transfer services from 15% to 20%. This will add more pressure to gambling operators who rely on efficient payment systems to process transactions.

This comes after the Kenyan treasury previously tried to increase gaming taxes with a proposal to jump from 12.5% to 20%. Although this one is not as bad, it’s still a significant increase that will change the market landscape.