NAIROBI, KENYA: The Kenya Revenue Authority (KRA) has made Sh4.7 billion in taxes since the gambling craze that has gripped the nation.

However, taxes collected from these firms might drop after Treasury CS Henry Rotich slapped the betting and lottery companies with 50 per cent uniform taxes.

The uniform taxes is a rise from 7.5 percent previously paid by the gaming, lottery and betting components of the gambling industry.

This could mean any money you win in gambling will be considered taxable income by the government and will be subjected to 50 per cent uniform taxes, in reality you will end up with far less than what you expected.

In gambling, there are winners and losers but most Kenyans don’t think about taxes after winning.

 It doesn't matter how much money you win either -- you are required to report all of your gambling winnings and pay taxes accordingly before spending your newfound fortune.

There are various factors that affect how much you will end up paying to the government following the new law.

For example, in layman's terms, if you win sh1, 000,000, you will need to prepare to pay 50 per cent uniform tax, nearly half your winnings to the Kenyan government that means you’ll pay about sh500, 000.

Not all gambling winnings, however, are subject to tax. Certain special rules can apply to your gambling income. If the gambling firm decides to pay tax on your behalf, you can take your winnings all at once that is sh1, 000,000.

The gambling companies will also pay the 50 per cent uniform taxes depending on how much money they make in a month. For instance, if they make sh500million they will pay sh250million.

Minimum limit on the size of stake/money that can be placed on a bet might remain the same unless the betting company raises it higher in relation to the new tax law or nature of their operation.

The new tax regime comes on the backdrop of a bill in Parliament which had proposed new and higher taxes on the gaming industry among other proposals that faced stiff opposition from the industry and government agencies such as regulator Betting Control and Licensing Board (BCLB) as well as the Ministry of Interior under which BCLB falls.

The Bill had also proposed to block gaming operators from using e-platforms such as M-PESA and instead directing that betting firms come up with their own platforms to engage their customers.

The money collected from the taxes will be put in the sports fund to help support the development of sports, culture and arts.