Former Betting Control and Licensing Board of Kenya chairman Kimani Kung'u has defended betting companies, saying there is a misconception about revenues earned.
"There is a difference between revenue and input. Your deposits in a bank are not revenue for the bank. It uses it to invest and get interest. That is the revenue," he said.
He said revenue in the industry is about Sh20-25 billion rather than inflated figures.
Kung'u said several betting companies had met the threshold to have their licences renewed, but they ended up being locked out.
Senator Cleophas Malala said there has been selective discrimination of betting companies.
He said if the government is genuine about curbing betting, it wouldn't decline to renew some firms' licences and at the same time allow new companies to set up in the country.
Malala defended SportPesa, saying the government went back on a court order that had allowed the company to continue operating as it resolved differences on tax issues.
He alleged the 27 companies whose licences were initially closed were targeted to enable powerful individuals with betting companies to have a monopoly.
"(Interior CS Fred) Matiang'i is not the Finance minister so how does he know about tax?" Malala said.
He said the government wants to tax capital on amounts used to bet and that is where the contention is coming on what is owed to the government.
SportPesa has denied 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.
