In Kenya anything can happen, today sportpesa is dead, tomorrow it’s back. Many of you have been questioning whether there is hope of Sportpesa coming back, the truth of the matter is, not anytime soon— but there are hopes.
Over the past few weeks we have been gathering information regarding Sportpesa, the government and various institutions. Though the likes of Kanini Kega have argued that Sportpesa had zero impact on the economy, already several companies are ailing. Our research shows that more than 50 companies will suffer due to the exit of Sportpesa and Betin.Some of them listed below:
- Nation Media Group
- Standard Media Group
- Mediamax Networks
- Safaricom
- Airtel
- EABL
- Bulk SMS service firms
- More than 30 radio stations
- MPESA agents
- Gor Mahia
- AFC Leopards
- Kenya Premier League
- Bloggers
- Advertising agents
- Several banks
Safaricom, Gor Mahia and media stations will suffer the most.
Soon some of the aforementioned listed companies will start retrenching workers. Already more than 2,500 workers have lost jobs in Sportpesa and Betin.
The government hopes that the subscribers of Sportpesa and Betin will switch to the remaining betting sites, but it’s not obvious. From our own experience, more than half of gamblers in Kenya stopped betting the moment Sportpesa was closed.
Every year, Sportpesa was paying upwards of Ksh 8 billion in taxes, it’s absence means that the government must find a way of filling the tax gap. But since the economy is not doing well, it will be hard for the money to be recovered.
The only issue Sportpesa was having involved the 20% winning tax. It’s only parliament that will determine whether Sportpesa will return or not by reviewing the winning tax.In 2017 Sportpesa threatened to exit Kenya when parliament introduced 35% tax on betting companies ,the legislatures decided to review the tax where 15% remained with gambling sites while the rest was pushed to winners– which is the 20% tax that’s being contested. The problem is not the tax but how it’s implemented. Sportpesa argues that only winnings should be taxed, not winnings and the principal amount. Courts have however indicated that there is nothing wrong with taxing principal amount.
It might take up to one year for parliament to review the taxes so as to allow Sportpesa to resume operations. The government will only consider this based on the performance of the remaining betting firms and the companies affected by the exit of Sportpesa.
Now, even as Sportpesa exists from Kenya, we have several betting companies which are currently operating. Venas News will continue providing daily betting tips and jackpot predictions. Currently we are focusing on Betika, Shabiki, Bet254 and Betway jackpot. To get the tips, subscribers pay Ksh2,000 per month, Ksh1,100 for two weeks or Ksh550 for one week as follows:
- Go to MPESA
- Select Lipa Na MPESA
- Select Buy Goods and Services
- Enter MPESA till number (705909)
- Enter amount (Ksh2,000, Ksh1100,Ksh550)
- Enter MPESA pin and send
We will send the tips via SMS.