Sportpesa announced that it would be canceling its sports sponsorships. The company issued a notice to all clubs and partners of this move after suffering immense pressure from regulators.
A media statement from the company alludes to harsh actions from the regulator, such as delayed license renewal and suspension of pay bill numbers, which reduced the betting giants’ business operations.
Withdrawal of Sportpesa’s sponsorship follows an earlier High Court decision to continue taxing winnings in the betting space. The company feels undue pressure from the Betting Control and Licensing Board (BCLB) even after its compliance with all statutory and regulatory requirements.
“We have always been compliant with all the Statutory and Regulatory requirements” read Sportpesa’s media statement.
In its five years in business, the company has established betting platforms in Kenya, South Africa, Tanzania, and the UK. The company’s sponsorship withdrawal might affect linkages between local clubs and foreign big shots like Hull City.
The company pledged to resume support to clubs as soon as business recovers.