Why Closure of Sportpesa, Betin is Good For Kenya- City Lawyer

Why Closure of Sportpesa, Betin is Good For Kenya- City Lawyer

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Sportpesa CEO Ronald Karauri. His company has quitted its the Kenyan Market.

The outspoken City Lawyer Daniel Kipkorir has welcomed the decision by betting companies, Sportpesa and Betin, to shut down their operations in Kenya.

The lawyer took to social media, on Saturday, to laud the government for initiating tough operating conditions for the companies saying it was a great service to its citizens.

According to Kipkorir, the youths have been brainwashed by the betting cultures adding that they are no longer productive.

“Closure of Sportpesa and Betin is good. Poor Economy like Kenya can’t have its youth being misled that they can find riches in gambling instead of hard work.

Betin Company has issued termination of employment notice to its employees with effect from 31st October.

Betting & gambling are the most dangerous vices of a 3rd World Country .. We need technical colleges not betting shops!” he said.

In a statement to newsrooms on Saturday, Sportpesa said the government had put in place hostile conditions that won’t allow their business to operate effectively.

“The tax is based on a fundamental misunderstanding by Rotich led treasury of how revenue in the bookmarker industry.

This decision will have a damaging impact on both customers and treasury” read in part the statement.

According to the giant betting company: “Until  such time that adequate taxation and non-hostile regulatory environment is returned, the SportPesa brand will halt operations in Kenya.”

The firm also argued that the government directive would deny consumers of their winnings fearing that the end result will jeopardize the running of their operations.

“The economic incentive to place bets will be completely removed as the taxes will deprive consumers of their total winnings.

This will have severe consequences for licensed betting companies,” said Sportpesa.

On the other hand, Betin issued a termination of employment notice to his employees with effect from October 31st.

The two companies were among 27 betting firms whose licences were either revoked or denied after the government alleged improper remittance of taxes.

Their operations were paralyzed in July after the government blocked their pay bill numbers.

 

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