OdiBets complies with 20 percent tax rule

Rodgers Ochieng, winner with OdiBets. [Courtesy]

Kenya’s betting firm OdiBets will began deducting 20 per cent from customer’s winnings and remitting it to Kenya Revenue Authority (KRA).

Having complied with the directive by the Betting Control and Licensing Board and KRA, the firm which boasts to always giving bettors the best betting experience will ensure that the tax required by the Government from winners is deducted immediately a bet is complete.  

“Our clients will now get 80 per cent of their potential winnings,” said OdiBets Country marketing manager Aggrey Sayi.

The Government and the industry have been in a push and pull about taxing gamers that win prize money for placing bets for some time now, with the Government appearing to have won last year with the passing of the Finance Act 2018, which slapped winners with a 20 per cent withholding tax.

KRA has since notified gamblers that it expects betting firms to deduct and remit the taxes.

“Betting companies, are required to withhold winnings at a rate of 20 per cent… this means that if you place a bet and win Sh50 000 you will receive Sh40 000. The balance of Sh10 000 is withheld by the betting company and remitted to KRA,” said KRA in a statement.

“KRA taxes the winnings of punters (people who place bets) when they wage successful bets. It is important to note that placing of bets is a form of entertainment and does not lead to generation of income.”

Some of the sector players however are of the view that this might see their customers incur a higher tax burden that would wipe out their winnings as well as eat into the amount they had put in the bet.