Kenya’s leading gaming company Sportpesa has withdrawn all its sponsorship commitments in the country worth millions of dollars “effective immediately.”
SportPesa gave quit notice to all its partners last week after Gaming Association of Kenya lost a court case challenging new laws imposing 35% tax on gross betting proceeds.
They argued the taxation regime would incapacitate them in terms of honoring their sponsorship obligations as their profit margins would be greatly depleted.
“Effective immediately, SportPesa has withdrawn all their sponsorship commitments having lost the case against government’s proposed tax,” Ronald Karauri, the firm’s CEO posted on Facebook.
“SportPesa will however continue its operations in Kenya,” He added.
The gaming giants are the title sponsors of Football Kenya Federation, Kenyan Premier League, Kenya Rugby Union, Kenya Boxing Association, Gor Mahia and AFC Leopards amongst others.
They also have a strong presence outside Kenya with deals in Tanzanian Premier League with Simba SC, Yanga SC and Singida United.
SportPesa is also the shirt sponsor of Premier League side Everton as well as Cape Town City of South Africa.
It is however unclear if the deals abroad will also be affected.
AFC Leopards’ Chairman Dan Mule in his New Year statement said SporPesa withdrawal would greatly affect their goals to “achieve more success” next season.
“In fact, I can put it right here on the record that without the backing of SportPesa, the club will not be able to pay salaries and play in continental assignments next year,” Mule said.
Leopards are scheduled to represent the county in the CAF Confederations Cup as Kenya Cup winners.
Gor on the other hand will be taking part in the African Champions League as KPL champions.
