NAIROBI, Kenya, October 31 – The Betting Control and Licensing Board, has requested the Inspector General of Police alongside the National Intelligence Service (NIS) to investigate possible financial evasion acts by betting firm Sportpesa.
In the multi-agencies approach probe, the board wants the Directorate of Criminal Investigations, Central Bank of Kenya and Kenya Revenue Authority involved.
This comes after the firm on Friday announced it would use the trademark name “sportpesa” despite its prohibition in the country.
While the news of its return was music to the ears of gamblers, it didn’t go well with authorities.
The betting giant ‘sportpesa’ said it would make, what the company described as a ‘triumphant re-entry’ into the Kenyan market, sending millions of gambling enthusiasts into a frenzy after it had halted its operations following a 20 percent tax on betting stakes in the country last year.
But the BCLB on Saturday denied claims that it had granted the firm permission to resume its operations in the country.
In a statement by the board, it said “the company which owns the trademark, “sportpesa” M/S Pevans E.A Ltd. saw its license revoked and subsequently filed an appeal in court challenging the decision. The matter is however set to be heard on 16th November 2020. Therefore, “sportpesa” is not licensed to operate in the country.”
BCLB further revealed that on October 30, a licensed gaming operator, M/S Mile Stone Gaming Limited with a trading name “Mile Stone Bet” wrote a letter to the board informing it that it had acquired a new trading name “sportpesa” and had received authorization to use the trade name from M/S Sportpesa Global Holdings Ltd for a period of 5 years.
It further informed the board that it would use the trade name “sportpesa” as well as its various domains, payrolls and short codes earlier used by M/S Pevans E.A Ltd. “sportpesa”
But in a quick rejoinder, BLCB said, it prohibited the use of the trade name as well as any other domains.
The board said it “was shocked to learn that they defied the directive and even proceeded to make public the news that it was operational.”
As a results, the betting board has now called in the DCI, KRA, NIS, CBK to investigate possible financial fraud describing the situation as a serious regulatory matter.
Mile Stone Games Ltd. has since license has since been revoked “with immediate effect.”
Interior cabinet secretary, Dr. Fred Matiang’i who led the fight against gambling excesses in the country meanwhile Saturday said, “we are not going back on the decisions that we took on betting and gambling. This is something we took our decision on, our President has been firm about it, expressing himself publicly and has led us as expected.”
Matiang’i said that the existing policies will be guarded and sanity must prevail since poor management of the gambling sector had threatened to destroy families.
“We can’t allow criminals and money launderers to come and do in our country what they can’t do in theirs,” the Interior Cabinet Secretary asserted.
The Communicatios Authority has meanwhile shutdown domains, directing Mobile service providers Safaricom and Airtel to also shutdown paybills and short codes used by Mile Stone Games Ltd.
Prior to ceasing its operations, Sportpesa had said that it would only resume its operations if Kenya put in place , “adequate taxation and non-hostile regulatory environment”
Thousands of Kenyans also lost employment following its closure.
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