Gamblers and employees are counting a huge loss after betting firm SportPesa quit its operations in the country citing harassment and stringent tax regulations.
The company is expected to send hundreds of employees home, and cutting sponsorship ties with majority of programs.
According to the company CEO, the tax slapped in the industry is not conducive for business hence can no longer thrive.
Statistics indicate that betting firms control 60 percent of the country’s market share, with their exit from the market, the numbers are expected to dwindle and people rendered jobless.
“The tax decision is based on a misunderstanding with the treasury on the distribution and generation of revenue. we have decided to quit therefore, and this decision will be damaging to both the treasury and the customers,” read a statement from SportPesa.
BETTING FIRM SportPesa shuts down operations in Kenya, cites hostile regulations. pic.twitter.com/mB5VaDNg0P
— The Star Breaking (@TheStarBreaking) September 28, 2019
READ ALSO: BREAKING: Betting firm SportPesa opts out
SportPesa has been involved in a court battle for about two months after the Interior CS Fred Matiang’i made the decision to close betting firms that had failed to correspond to the set regulations within the country.
According to Matiang’i, the gambling firms were hazardous to the youth and school children by being addictive and making them lazy.
A notice was sent to all staff on the ground indicating termination of employment, sine the tax regulations impound hugely and the business will not be thriving successfully.
“We would like to notify our employees that the positions will be redundant effective October 31,” read the notice.
At least 2500 employees are expected to loose their jobs due to the closure of the betting firms, with majority being youths who will then be rendered jobless.
— NTV Kenya (@ntvkenya) September 28, 2019
With the growing number of redundancy and companies that lay off workers, rampant robberies and criminal activities are expected to be on the rise due to unemployment and idleness.