Gaming company Sportpesa has given all clubs and federations they are sponsoring in Kenya quit notice after Gaming Association of Kenya lost a court case against new taxation laws.
The laws passed and ratified in June this year will increase tax imposed on gaming proceeds to 35% of gross profit from previous 7.5%.
Sportpesa and other gaming companies opposed the laws in court through the association arguing their profits margins would be greatly affected – rendering their operations untenable.
With the battle lost in the legal system, Sportposa, has notified clubs and federations they currently sponsor of their intention to terminate the existing contracts.
Sportpesa is the major sponsor of the Football Kenya Federation, Kenyan Premier League, Gor Mahia FC, AFC Leopards, Rugby 7s team and a host of other sports.
If they make good their threat then the industry at large is going to be greatly affected.
Leopards and Gor Mahia have already indicated that they will not honor their continental matches next year if this happens.
Sportpesa has recently spread their wings across borders and have sponsorship deals with Yanga SC and Simba SC of Tanzania, Everton of the Premier League and Cape Town City of the Premier Soccer League.
It is now clear if they will also be affected by the latest happening in Kenya.
