SportPesa denies claims company resuming operations this month
By Robert Abong'o | June 1st 2020
SportPesa CEO Ronald Karauri has poured cold water on rumours the betting company will be resuming operations in the country this month, following a viral post on social media claiming the company has been issued with a certificate of operation by the government.
The CEO dismissed the piece of information as ‘Fake News’.
This is not the first time The SportPesa CEO has issued replies about issues facing the company on social media.
In February, he was involved in an exchange with renowned city Lawyer Donald Kipkorir, following Everton’s announcement ending its partnership with the betting firm.
A statement by the club revealed the agreement was reached following a comprehensive review of its commercial strategies in line with its vision and growth plans.
"This has been a difficult decision but one that allows us to best deliver on our commercial plan and to grasp the new opportunities now open to us. The Club would like to thank SportPesa for all of the work that has been done together. Our partnership has seen our first team visit Africa on two occasions, as well as former players and Club staff take part in numerous activations in the region. This has allowed us to grow our own footprint in Africa and further strengthen our special relationship with the continent,” Everton said in a statement.
After the news, Kipkorir took to Twitter to give his two cents, only for Karauri to respond.
“Ireland then now England is terminating all contracts with SportsPesa. These are highly developed Countries who have decided to do away with gambling in Sports ... Kenya, a poor & miserable country is excited with gambling & Prime Time News is even sponsored by Betting Companies, “ posted Kipkorir.
The lawyer, seemed to laud Everton’s move to end dealings with SportPesa, saying it’s only in Kenya that people are excited by gambling.
Karauri responded, telling the lawyer Kenyans love taking down their own.
“This is so far from the truth. The biggest betting company in the world - Bet365 resides in England. Kenyans love bringing down their own, and now the same Bet 365 is probably the most popular betting site in Kenya, more revenue for them and more tax revenue for the UK,” Karauri replied.
The exchange did not stop there. Kipkorir went on to explain to Karauri how English associations terminated contracts with betting firms.
“English FA & Irish Football Association terminated their contracts with betting companies & football clubs & tennis associations followed suit. We have moral obligation to discourage betting & gambling companies in poor countries. We should promote entrepreneurship not gambling.
SportPesa has been Everton's main partner since 2017. The Toffees will appoint a new main partner ahead of the start of the 2020/21 season.
The Football Association of Ireland (FAI) on February 4 also terminated its two-year sponsorship with SportPesa.
FAI came under heavy criticism from anti-gambling campaigners who felt the sports body was improperly promoting betting.
In March 2019 the FAI announced its deal with SportPesa stating that the gambling firm would partner with it on a programme of corporate social responsibility.
SportPesa, through its spokesman, also issued a statement saying that the partnership had been dissolved by mutual agreement, adding that they respect the FAI's decision to change priorities and re-evaluate sponsorship partnerships.
For SportPesa, the end of the partnerships is another blow, following Kenyan Government refusal to renew its betting licence last year due to concerns over the rapid rise of gambling addiction and tax compliance issues.
SportPesa halted operations in Kenya and expressed disappointment with the 20 per cent excise tax on all betting stakes.
The company stated that it would only resume operations once a non-hostile regulatory environment is restored.
Founded in 2014 in Nairobi, SportPesa has operations in Tanzania, South Africa, Italy, Ireland and the UK.
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