Home

New Gambling Tax for Kenya

Most people are happy that the State Treaty on Gambling in Kenya has been approved. Thanks to this new law, online casinos are finally legal. In addition, not only Canadian gambling providers are allowed to present their sites. Of course, foreign gambling providers may also apply for a license for Kenya. Most of the large providers are happy about this decision, some of which even had problems with the Canadian judiciary. Problems of this kind should be a thing of the past. However, the dark side of the State Treaty on Gambling is the new tax.

Auf einem Haufen mit Münzen und Geldscheinen liegt ein Taschenrechner.

Due to the new Canadian State Treaty on Gambling, there is now a modified gambling tax. It should now be calculated on stakes and not on profit.(©Bru-nO/Pixabay)

Gambling tax is calculated on stakes

Previously gave there was a betting tax in Kenya which was calculated on winnings. The newlaw, which was created in the course of the State Treaty on Gambling, defines the tax on the stakes. This increases the tax burden significantly. The players are not happy about that at all. But theOperators also see problems with the new type of tax.

If the tax is calculated on the stakes of the players, the profit of the gambling provider is reduced. Of course, the online casinos do not want to be left with the reduced profit and pass it on to the players. How does this happen? Simple: thepayout percentages will decrease. If this happens, players could turn to unlicensed providers. They don't pay any tax and therefore don't have to reduce the payout ratio.

The new regulation of the gambling tax also calls various associations into action. They also see the problem in the fact that many players would migrate to illegal offers. In this case, the new State Treaty on Gambling would no longer have the benefit it should have:Legalize online gambling and increase player protection. In addition, the current tax is not only calculated on the stakes, but also results in a higher rate. So far the tax was 5 percent, in the future it will be 5.3 percent.

Reasons for the new tax regulation

There is a simple reason why the gambling tax is changed at all. The existing law dates back to the year 1922. At that time no one was counting on online casinos, which is why theprevious law only mentions a tax for lotteries and sports betting. This alone is one reason why the law had to be revised.

According to professional estimates, the government could take in more than a billion euros from the new tax. This would increase tax revenue by 50 percent, sincein 2017 almost 2 billion euros in betting taxes.

According to experts, the new tax is particularly beneficial in poker to far-reaching problems. The statement has already been made that the bankroll would be gone immediately in a Fast Forward game. Added to this areExperiences from other countries. In Switzerland, for example, there are hardly any offers for online poker.

In Austria, a few years ago it happened to a well-known poker star, namely Peter Zanoni. He was the owner of the Concord Card Casinos. Due to the gambling tax in force in Austria, Zanoni ran into financial problems. After a year-long dispute with the tax authorities, Zanoni had to end his dream and close the casinos.

Use of the gambling tax

No one knows how the state spends the gambling tax . It is assumed that the tax is treated like any other tax and accordingly benefits the general public, for example. So it could well be possible that the gambling tax is spent on schools. It would also be possible for the tax to be used for other purposes. In particular, the current expenses related to the corona pandemic have to be paid for by the state somehow. From this point of view, an increase in the tax is quite obvious.

Nevertheless, it is to be feared that players will choose an online casino that offers a higher payout percentage. In this case, the state takes less taxes. So there is also the fear that the state will score an own goal.A look at other countries shows that there the tax flows back into gambling and its safety. In Finland, for example, gambling revenues are used for gambling prevention. This is a slightly unusual idea, but it does put the revenue back to the same source. With the preventive measures, Finland wants to curb gambling.

Kenya, on the other hand, triesto get more income from gambling. Containment is not the primary goal here. If you want to play tax-free, you will find theOnline casinos without tax for Canadian players.

Does the tax apply to foreign games of chance?

Im Gesetz über die Glücksspielsteuer wurde vermerkt, dass das Finanzamt zuständig ist, in dessen district in which the gambling provider is based. Foreign gambling providers, such asreputable online casinos for players from Switzerland, must name a domestic representative. Wording of this kind does not make it clear whether foreign gambling providers also have to pay the tax.

If this is the case, the number of applications for a Canadian license could be reduced. However, if you do not apply for a license, you are not allowed to offer your online casino in Kenya in the first place. As a result,Online casinos could decrease. This reduced supply may well again lead to players migrating to illegal offers. This is also due to the fact that, according to the new law, popular casino games such as roulette may no longer be offered Fraud test.com under the keywords

Zu den besten Online Casinos

Der Beitrag wurde am 3.5.2021 in dem Magazin von cpaws-ov.org unter den Schlagwörtern ,,,, published.
Share news: