Kenya has flagged betting firm W88 Kenya, which is a brand of a bookmaker from the UK, for offering gambling services without approval.
The Betting Control and Licencing Board (BCLB) chief executive Peter Mbugi said W88 has been offering its services in Kenya without approval, a move which could see the regulator slap the firm with a fine.
The brand is operated by Marquee Holdings Ltd with its headquarters in the city of Makati, a gambling centre in the Philippines.
"W88 has not acquired a licence to provide gambling services in Kenya," said Mr Mbugi in an interview on Monday. "Any punter who will engage them should do so at its own risk. We are still pursuing them," he said.
Mr Mbugi said the board of BCLB has since asked the Communications Authority of Kenya (CA) to flag down their website, and they have also talked to X, formerly Twitter, to close down their account.
No-objection letter
The firm has been using its X account to promote its activities in Kenya.
BCLB is also investigating the matter with a view to sanctioning W88 and its directors.
"Before you register a gambling business in Kenya, you must have a letter of no objection from us to allow you to apply for a licence, a process that they didn't follow," he said.
He warned that BCLB is surveying the market to establish if there is a betting firm operating illegally.
There were 128 licensed betting firms in Kenya as at September last year.
The growth of the industry has defied higher taxes meant to discourage the gambling craze, with Kenyans, especially the unemployed youth, seeing betting as an avenue for making money to pay daily bills rather than a pastime.
Betting stakes are currently taxed at the rate of 12.5 percent in addition to the 20 percent withholding tax on every winning bet.
The Treasury has attributed its recent decision to increase the excise tax on betting stakes from 7.5 percent to 12.5 percent to the need to discourage participation in gambling activities by Kenyans.
Besides the taxes on gamblers, betting firms are taxed on the gross gaming revenue —turnover minus winnings paid out— at a rate of 15 percent.
Sh88.5bn bets
They also pay corporate tax on profits at 30 percent.
Excise tax on betting advertisements was from July 1, 2023 introduced at the rate of 15 percent in yet another push to make them costly.
