The Association of Gaming Operators of Kenya (AGOK) has warned that 10000 Kenyans risk losing their jobs once the Finance Bill (2017), which was signed by President Uhuru Kenyatta, comes into effect beginning January 2018.
Speaking at a media briefing held on Friday, the Association warned that the entire industry faces possible collapse as their businesses cannot sustain 35 percent tax on gross profit as proposed by the new law.
AGOK chairman, Ronald Karauri disclosed that the “Increase in taxation will have a bigger negative impact. There is no business which can operate with these taxes.”
The association further warned that the law would see illegal gaming and gambling dens mushroom, exposing the youth to more uncontrolled betting activities.
On Wednesday President Kenyatta signed the Finance Bill (2017) that has exposed betting and gaming industry to higher taxation.
[caption caption="AGOK officials at the media briefing"]
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Other than the 10,000 employees who risk losing employment, the sports fraternity has suffered a huge blow as a result of the decision made by the Head of State.
One of the country's leading gaming companies, Sportpesa, announced that it will cancel all sponsorship deals with Kenyan teams beginning January.
The decision affects Football Kenya of Federation (FKF), Kenya Premier League (KPL), Kenya Rugby Union (KRU) and Kenya Boxing Association that have signed sponsorship deals estimated at Sh1 Billion with Sportpesa.
