KRA Adjusts Taxes on Betting and Lotteries from Staked Money to Deposits
- KRA has revised excise duty rules for betting, gaming, and lottery services, shifting the tax base from amounts staked to customer deposits and payments
- Betting and gaming operators are now required to remit collected excise duty within 24 hours of daily transactions, while operators of prize competitions and lotteries must submit taxes by the 20th of the following month
- The Finance Act 2025 introduced a 10% excise duty on fees charged by virtual asset service providers for cryptocurrency transactions
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
The Kenya Revenue Authority (KRA) has revised how excise duty is applied to betting, gaming, and lottery activities.
Source: UGC
KRA has shifted the tax base from the amount staked to the amount deposited or paid. This move, which took effect on July 1, 2025, is part of tax changes introduced in line with the provisions in the newly implemented Finance Act 2025.
Tax changes on betting and lottery services
Under the previous regime, betting, gaming, and lottery operators were required to deduct 15% excise duty from the amount wagered, staked, or paid by consumers.
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The updated structure now applies a 5% tax on deposits or payments made by customers, significantly altering the tax burden distribution across the industry.
The revised excise duty rates require betting operators (excluding horse racing) to charge and remit a 5% excise duty on the amount deposited into a customer’s betting wallet, down from 15% of the amount staked.
In gaming, KRA has implemented a 5% duty on wallet deposits, an adjustment from 15% of the amount staked that was charged prior to Finance Act 2025.
KRA will require operators of prize competitions to pay 5% on participation fees, compared to 15% under the previous law.
Lotteries (excluding charitable ones) will pay 5% on ticket purchase value, down from 15% excise on the same.
Source: Twitter
KRA tax remittance
KRA directed that betting and gaming operators must now remit the excise duty collected within 24 hours after the close of each day’s transactions.
However, for prize competitions and lotteries, taxes must be submitted by the 20th day of the following month.
"Manufacturers and/or suppliers of the above excisable goods and services are required to charge the new excise duty rates on the excisable goods and services and remit the tax collected to the Commissioner as follows within twenty-four hours from the closure of transactions of the day in the case of betting and gaming; and on or before 20th of the month following the month in which the tax was collected for all other excisable goods and services listed above," read the public notice by KRA.
KRA urged all affected operators to comply with the updated rules and ensure timely remittance of taxes to avoid penalties.
KRA announces new excise duty rates
In other news, KRA has announced new excise duty rates effective July 1, 2025.
KRA shared a list of the excisable goods subject to the new rates following the enactment of the Finance Act, 2025.
The changes include new taxes on imported items such as self-adhesive plastics, printed polymers, laminated materials, glass products, and aluminium fittings, which now attract 25% duty or KSh 200 per kilogram.
The act also adjusts existing excise rates on goods like labels, cartons, and ceramic tiles and introduces a 10% excise duty on fees charged by virtual asset service providers for cryptocurrency transactions.
KRA requires affected parties to obtain relevant licenses or certificates and remit collected taxes promptly, with varying deadlines based on the type of goods or services.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
