• Government last week suspended short codes of 27 betting firms on grounds of tax evasion
• Association of Gaming Operators has disputed amount government says betting firms owe
Image: COURTESY
Betting firm SportPesa has refuted reports it is closing down following the government's decision not to renew its operating license.
The company said it is in discussions with the government and relevant stakeholders to find a resolution to an impasse that has made 26 other betting firms suspend operations.
“We are positive that we will be back to full operation soon,” the firm said in a statement.
The company pointed out that any update regarding its business will be communicated through its official channels.
SportPesa operations have remained crippled since last Friday after the government ordered telecommunication firms to block its pay bill numbers for allegedly evading taxes.
SportPesa and 26 other bookmakers and lottery operators were asked to renew their licences to net tax evaders.
To demonstrate government resolve to reform the gambling industry, Interior CS Fred Matiang'i deported 17 directors of companies involved in gambling in the country.
The foreigners, mainly from Eastern Europe, are said to have engaged in other businesses besides those stipulated in their work permits.
Reports had indicated that hundreds of jobs were on the line as the government intensified its crackdown on betting companies, which were considering laying off staff to cut losses.
Most of those who are said to be on the verge of losing their jobs are the technical staff, employees at the call centres and marketing staff.
The government also warned commercial banks, mortgage finance companies and micro-finance institutions against non-renewal of licences and permits of the bookmakers and lottery operators.
Apart from SportPesa the other major firms caught up in the crackdown are Betin, Betway, Betpawa, Supadollar, Premierbet, Lucky 2 U, 1XBet, Mozzartbet, Dafabet, Bet Yetu, Millionaire Sports Bet, Palmsbet, Bungabet and Bet Boss.
Last weekend, President Uhuru Kenyatta said the government would not relent in its war against firms that evade taxes. He said gambling firms had an obligation to pay taxes "and some companies even allowed children to bet".
Most firms have, however, said they have been paying taxes as required by law, with some going to court to seek redress.
Association of Gaming Operators chairman Ronald Karauri has disputed the amount the government has said betting firms have not remitted as taxes saying it is way lower.
Edited by R.Wamochie