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“We are requesting the CS to consider reopening our companies to enable us earn a living,” He says. The sector has employed more than 10,000 people and supporting the livelihood of about 30,000 individuals. The battle began in February when the board issued new guidelines which require casinos at the coast to open and shut their companies at 11am and 5am. The gaming industry’s row with the overseer relating to restricted working hours has ended up within the High Court as one of the gamers seeks to check the powers of the Betting Control and Licensing Board .
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The flat taxation treats the companies the identical regardless of their completely different fashions and value constructions, which the previous tax regime seems to have taken into consideration. Pambazuka National Lottery, for instance, final month suspended its operations and its affiliate sports betting agency SportPesa cancelled its Sh600 million annual funding to varied sports organisations. We just don’t see how we will presumably survive a tax of 35 per cent on gross revenue.
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“Generally a casino’s gross income will exceed prices by between 10 to 25 per cent relying on its measurement. In our case it’s at best 22 per cent,” Mr Dunford wrote within the letter. More casinos are contemplating shutting down, in accordance with Association of Gaming Operators Kenya chairperson Ronald Karauri. Industry insiders stated the economics of the business might not allow them to shoulder the extra tax burden, forcing them to shut up store. However, the lack of a obtain software for iOS and Android units is a bit bitter.
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The case comes after months of strain to reverse an order slashing playing hours which was at one time rescinded by former board chairman Lucas Maitha earlier than being restored by BCLB director Amos Kwasi. He added that should casinos close up shop, the business will both go offshore or underground. Gross annual turnover of casinos in Kenya stands at an estimated $20 million , according to a report by advisory agency PricewaterhouseCoopers . Golden Key has annual gross revenue of roughly Sh200 million on which it used to pay a gaming tax of Sh24 million underneath the previous tax rate of 12 per cent of the turnover.
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