Tax could harm sports and other industries
The Kenyan Premier League is asking government officials to reconsider a plan to impose a 50 percent tax across the board on betting, lottery and gaming in the South African country.
In a letter signed by KPL CEO Jack Oguda, sponsorship from betting firms is key to keeping sports leagues solvent, and the tax could cause a sharp decline in sports and related industries.
“Apart from the Kenyan Premier League, four other football clubs—AFC Leopards, Gor Mahia, Mathare United and Sofapaka—are sponsored by betting firms,” the letter stated. “Through the funding, the league and the clubs have been able to meet the cost of operations of the various aspects that the sports sector demands,” including match-day expenses, marketing, the cost of accommodations, etc.
“The gains made by the sports sector on the back of sponsorship from betting firms will therefore be negated and reversing the retrogression will not be easy even with the creation of the National, Sports, Culture and Arts Fund,” said Oguda.
