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The flat taxation treats the companies the same regardless of their totally different fashions and value constructions, which the previous tax regime seems to have taken into account. Pambazuka National Lottery, for example, last month suspended its operations and its affiliate sports betting firm SportPesa cancelled its Sh600 million annual funding to numerous sports organisations. We simply don’t see how we will probably survive a tax of 35 per cent on gross income. We can only consider cessation of operations to avoid continuous losses,” Martin Dunford, a director of Golden Key Casino, wrote in the letter.
“We are requesting the CS to think about reopening our companies to enable us earn a dwelling,” He says. The sector has employed more than 10,000 people and supporting the livelihood of about 30,000 individuals. The battle began in February when the board issued new guidelines which require casinos at the coast to open and close their companies at 11am and 5am. The gaming industry’s row with the overseer regarding restricted working hours has ended up in the High Court as one of many players seeks to test the powers of the Betting Control and Licensing Board .
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He added that should casinos close up store, the enterprise will either go offshore or underground. Gross annual turnover of casinos in Kenya stands at an estimated $20 million , based on a report by advisory agency PricewaterhouseCoopers . Golden Key has annual gross income of approximately Sh200 million on which it used to pay a gaming tax of Sh24 million underneath the earlier tax price of 12 per cent of the turnover. Lotteries give prizes to holders of random numbers whereas prize competitions reward individuals for their talent, information or use of a company’s merchandise. Click on the heading to go to the betting market overview.
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