Sports betting firm Betin Kenya has issued a notice of termination to all its staff as the betting firm closes operations. Employees of the betting firm have until the end of October before their positions are declared redundant.
Betin’s move follows Sportpesa’s exit from the Kenyan market after the government demanded a 20% excise duty on stakes.
SEE ALSO: Sportpesa Calls it Quits, Blames Kenya’s High Taxation
According to a memo from the company, staff redundancy is due to interruption of the firm’s operations since July.
In July, BCLB failed to renew Betin’s license, therefore forcing the company to halt operations. As a result, Betin suffered thorough financial constraints, leading to shrunken profits.
“… we have had financial constraints as you might all expect. Because of the deterioration of profitability, the management had to rethink its operational model and to proceed with the exercise of termination on account of redundancy,” explained an internal memo.
However, members of the organization will continue with work as usual until 31st October 2019.
Betting firms face hard times as the government now demands 20% excise duty on all stakes. The exit of betting firms for the Kenyan scene will not only affect KRA’s collections, but also reduce funds available for sports sponsorship.
