Betting company Sport Pesa has terminated all its sports sponsorships citing punitive measures from the Kenyan Government. The company’s all 500 staff members have been put on leave until 28th of August pending retrenchment. The Company says the working environment has become hostile making it had for smooth operations. This comes after Interior ministry ordered for the review of all betting and gambling companies in the country.
The Betting Control and Licencing Board, BCLB, is yet to renew the Company’s Operations Licence with its business numbers remaining suspended. The business numbers/ paybills are used by gamblers to deposit or withdraw gambling funds. Also to be affected are the lucrative advertisement deals between Publishers/ media and gambling companies. “I’ve just noticed that the government in Kenya made new rules about advertising gambling and making payment from other countries. They just don’t allow it! So, I’m unable to work with you for those reasons. If the situation changes, I’ll gladly make you an offer to cooperate,” wrote an advertiser to a Publisher.
Here is the recent media statement from Sport Pesa;
The gaming industry has been operating in an extremely challenging business environment for the past couple of months Sportpesa as a business has been subjected to punitive measures by regulators such as delayed license renewal and the suspension of paybill numbers with these actions considerably reducing the level of business operations.
Betting company Sport Pesa has terminated all its sports sponsorships citing punitive measures from the Kenyan Government. The company’s all 500 staff members have been put on leave until 28th of August pending retrenchment. The Company says the working environment has become hostile making it had for smooth operations. This comes after Interior ministry ordered for the review of all betting and gambling companies in the country.
The Betting Control and Licencing Board, BCLB, is yet to renew the Company’s Operations Licence with its business numbers remaining suspended. The business numbers/ paybills are used by gamblers to deposit or withdraw gambling funds. Also to be affected are the lucrative advertisement deals between Publishers/ media and gambling companies. “I’ve just noticed that the government in Kenya made new rules about advertising gambling and making payment from other countries. They just don’t allow it! So, I’m unable to work with you for those reasons. If the situation changes, I’ll gladly make you an offer to cooperate,” wrote an advertiser to a Publisher.
Here is the recent media statement from Sport Pesa;
“The gaming industry has been operating in an extremely challenging business environment for the past couple of months Sportpesa as a business has been subjected to punitive measures by regulators such as delayed license renewal and the suspension of paybill numbers with these actions considerably reducing the level of business operations.
This despite the existence of a court order prohibiting the regulator from taking such actions.
This has brought about immense pressure on the business necessitating a re-evaluation of some plans. In light of these developments, we regrettably wish to announce that due to the uncertainty of this situation Sportpesa will be cancelling sports sponsorships effective immediately. All clubs and partners will have received notices as provided for in their contracts.
Sportpesa is passionate about sports development in the country and this decision was regrettably arrived at haltingly and after a lot of deliberation and thought. We greatly value our partnerships and we will endeavour to resume support to the best of our ability when the business recovers.
Sportpesa has, over the last 5 years of operation, grown as a business that endeavours to create value for all stakeholders.
We have always been compliant with all the Statutory and Regulatory requirements. We are a law-abiding organisation.
For now, we remain positive that the current situation will be resolved amicably and urgently, and we continue to seek the goodwill of all actors towards normalising the environment for the gaming industry.”
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