Ban on Betting and Celebrity Endorsements Extended

The excise tax on betting stakes was introduced in 2019 but was removed in July last year through amendments to the Finance Act, 2020 following lobbying by betting firms.

The Betting Control and Licensing Board has extended the ban on advertising and gambling to September.

According to the regulator, it is yet to conclude on the applicable frameworks to be used by betting firms. 

“We are yet to come up with those modalities and it is a process we hope will take at least two more months to be ready for use by operators,” said the Board’s Chief Executive Peter Mbugi as quoted by the People Daily.

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In 2019, the Board banned outdoor and online advertising of gambling, as well as the advertising of the same between 6 am and 10 pm.  

The Finance Bill, 2021 cut the 20 per cent tax on winnings from gambling to 7.5 per cent.

The 20 per cent tax on betting was introduced in 2019 but Parliament expunged it in 2020 through amendments to the Finance Act, 2020 following lobbying by betting firms.

“With the reintroduction of the excise duty on betting at 7.5 per cent, the country may experience an exit from the market of the key industry players citing an unsustainable and unfavourable business environment,” says consultancy firm KPMG.

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