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The flat taxation treats the companies the identical regardless of their different models and value constructions, which the previous tax regime appears to have taken into account. Pambazuka National Lottery, for instance, last month suspended its operations and its affiliate sports activities betting agency SportPesa cancelled its Sh600 million annual funding to various sports organisations. We simply don’t see how we will presumably survive a tax of 35 per cent on gross income. We can only consider cessation of operations to keep away from continual losses,” Martin Dunford, a director of Golden Key Casino, wrote in the letter.

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He added that ought to casinos close up shop, the business will either go offshore or underground. Gross annual turnover of casinos in Kenya stands at an estimated $20 million , in accordance with a report by advisory firm PricewaterhouseCoopers . Golden Key has annual gross revenue of approximately Sh200 million on which it used to pay a gaming tax of Sh24 million beneath the previous tax fee of 12 per cent of the turnover. Lotteries give prizes to holders of random numbers while prize competitions reward individuals for his or her skill, data or use of a company’s merchandise. Click on the heading to go to the betting market overview.

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