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Sportpesa Breaking News: Sportpesa To Return This Month After Court Ruled in favour of Betting Companies

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Giant Sports betting firm Sportpesa will return to business this month, November 2019 after a court tribunal formed to rule on the 20% tax winnings delivered a verdict. It was a big blow for Treasury today when the tribunal ruled that the 20% tax will only be charged on winnings, meaning that the principal amount won’t be subjected to taxation.

The tribunal also ruled that it’s the responsibility of punters to pay tax as opposed to betting companies deducting the tax.

The ruling means that when a player deposits Ksh1,000 and wins Ksh 1,200, only the Ksh 200 will be subjected to the 20%  winning tax.

The tax on winnings will be calculated as follows:

Stake=Ksh1,000

Odds=1.2

Total winnings plus stake=Ksh 1,200

Amount to be taxed=Ksh200

Tax=Ksh40

Total amount a player will take home=Ksh 1,160

Initially, a player was paying 20% of Ksh1,200 which means he would go home with a loss.

The major reason Sportpesa closed business is because of the interpretation of the 20% tax. Since court has settled the matter, the betting firm will recall its employees and continue with business.

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