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{
"id": 1581039,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1581039/?format=api",
"text_counter": 433,
"type": "speech",
"speaker_name": "Molo, UDA",
"speaker_title": "Hon. Kuria Kimani",
"speaker": null,
"content": "out to customers as winnings. This tax applies to betting, lotteries, gaming, and prize competitions, and is calculated and remitted monthly by licensed operators. In essence, gaming companies subtract total winnings paid out from the total amount wagered, and a 15 per cent gaming tax is applied on the resulting gross revenue. Finally, a 30 per cent corporation tax is payable by all resident companies. However, allowable tax-deductible expenses apply to that corporate income. The Aviator and Jackpot Games of Chance are classified as digital games of chance under the BLG Act. Their taxation regime is aligned with that of other betting and gaming activities, which includes excise duty, withholding tax on winnings, gaming tax and corporation income tax. There are approximately 346 betting and gaming companies that are operating in Kenya, and which are employing around 4,217 Kenyans. Those companies also remit several taxes, including PAYE, VAT, withholding VAT, corporation tax, withholding income tax, excise duty on betting and gaming, betting and gaming tax, monthly rental income (MRI) tax and withholding income tax on rent, NITA levy, and the Affordable Housing Levy. In the Financial Year 2023/2024, the sector contributed a total of Ksh23.6 billion in taxes. For the first three quarters of the Financial Year 2024/2025, Ksh26.28 billion has already been remitted, meaning that collections have surpassed the total of the previous full year by Ksh3 billion. Those tax revenues are projected to double in the Financial Year 2025/2026, owing to reforms made through the Finance Act of 2025 by the Departmental Committee on Finance and National Planning. Those reforms focus on taxing deposits and withdrawals, thereby addressing tax evasion, particularly by offshore betting entities. The reforms are expected to foster responsible gambling in Kenya. The following are individual tax yields from various gaming streams: Sportsbook, Ksh4.22 billion, Casinos, Ksh2.43 billion and Lotteries, Ksh37 million, being the lowest contribution. Sportsbook and casinos combined, Ksh17.4 billion, Sportsbook and lotteries, Ksh7.9 billion, Sportsbooks, casinos and lotteries combined, Ksh2.08 billion. Other general activities, Ksh218 million. The Aviator and Jackpot Games are part of an online casino, and tax revenue collected from them is included under casino tax, which contributed 8.28 per cent of total gross gaming revenue, amounting to approximately Ksh1.968 billion. Those games of chance are relatively new products in the market and generate substantial absolute tax revenue, in as much as the proportionate contribution is still comparatively small in relation to the more established games. With proper regulation to promote responsible gambling, their revenue contribution is likely to increase. The Finance Act of 2023 introduced a 15 per cent excise duty on advertisements related to betting, gaming, lotteries and prize competitions appearing on television, print media, billboards, and radio stations. This came into effect on 1st July 2023. Furthermore, the Tax Laws (Amendment) Act of 2024 expanded the scope of taxed media advertisements to include internet and social media platforms. The Committee is scheduled to meet with the Betting Control and Licensing Board (BCLB) during the short recess to address remaining pertinent issues. A full report will be tabled upon the resumption from the recess. The outstanding matters are as follows: 1. The legal status of Aviator and Jackpot Games of Chance in Kenya; 2. Measures by BCLB to control publication of advertisements related to the Aviator Game across audio, visual and print media; 3. The criteria and regulations used by BCLB to authorise and regulate those games of chance; 4. A list (with licence numbers and dates) of firms, media houses and other entities that are conducting such games in the country; and, The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}