Sportpesa is back! Betting firms receive permits

After an uncertain month of operations, several betting companies have finally received their permits for the 2022/2023 trading period, among them giant sports investors such as SportPesa.

The move which comes few weeks before the Kenya Premier League new football season kicks off on September 10 is a sigh of relief for various clubs and sports entities that have struggled to get partners to fund their teams. The permits for all betting firms are renewed annually and lapse every June 30th.

Betting companies are some of the largest investors in sports. SportPesa which has been operating using a court order since resuming business in November 2020 will now operate under Betting Control and Licensing number 0000448.

Other firms that have so far received their licenses include Betika, Odibets, Sportybet, Shabiki and Betsafe among others. Last month, some of these companies had to temporarily shut down their paybills as they sought clearance from BCLB as well as other state agencies; as part of the pre-licensing conditions.

Some of the conditions included a clearance from the Kenya Revenue Authority, Financial Reporting Centre and a Ksh250,000 bank guarantee among others.

“Our paybill numbers are currently unavailable affecting deposits and withdrawals and we are working with the relevant government agencies to have them restored so that you continue to enjoy the best gaming experience,” Betsafe told its customers on July 7, a week after the deadline of re-licensing had passed.

Betting firms are required to renew their licenses annually, a move that has always been mired in long standing push and pull over the conditions for licensing.

As the betting firms which are large investors in sports sought licenses, some football clubs were adversely affected when sponsorships were prematurely ended.

AFC Leopards and Gor Mahia who were sponsored by Betsafe at the start of the 2021/2022 KPL season had to look for new sponsors mid-season. The two popular clubs are now sponsored by Betika and BetArique respectively.

BCLB officials risk jail for contempt of court

As of Sunday, December 20, 2020 officials of the Betting Control and Licensing Board (BCLB) risk being jailed for violating court orders barring them from interfering with the operations of the popular gaming platform SportPesa.

Court order keeps SPORTPESA paybills on as battle for the brand rages on

This is after Milestone Games Limited, the company that operates the SportPesa brand in Kenya, moved to court seeking to have BCLB Chairman Cyrus Maina and six other board members jailed for contempt of court.

Matiangi
Chipukeezy and Fred Matiang’i

In the latest twist in the ongoing legal battle between SportPesa and BCLB, Milestone claims the seven officials have deliberately disobeyed orders issued by the High Court on December 3 despite having been served with the same.

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BCLB wrote a letter to Milestone on December 4, even after High Court judge Pauline Nyamweya barred the betting regulator from taking any further action, directing the company to show cause why its bookmaker’s licence should not be cancelled.

Karauri
Sportpesa CEO Karauri

In the court papers served on BCLB and other parties in the suit, Milestone claims that continued interference in its operations and business is a mockery of justice and now wants the betting officials jailed for six months.

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“The action to belittle and disregard court orders at will cannot be taken lightly and should be arrested at the earliest opportunity,” reads the application filed in court.

High Court
The Kenyan High Court

Other BCLB board members named in the proceedings are Peter Mbugi, Peter Kanaiya, Paul Njaga, Sabrina Kanini, Joy Masinde and Daniel Koech.

CONSPIRACY AGAINST FOREIGN INVESTORS?

Milestone further wants the BCLB chair and board members barred from holding public office as long as they continue disobeying the court orders allowing SportPesa to continue operations pending the hearing and determination of the case.

Mozzart bet
Mozzartbet

In a supporting affidavit, Milestone further states that BCLB bosses have “demonstrated utter disdain for court orders and the judicial process” despite being served with the orders and penal notices asking them to purge the said act of contempt.

“That the act of the Respondent and its Board Members is of utter utmost contempt of court and demonstrates disrespect to the Honourable Court and the same should not go unpunished,” states the affidavit.

Mozzart

This week, BCLB and ministry of interior officials went to SportPesa offices in Nairobi in what amounts continuing violation of the court orders allowing the gaming platform to continue operating in Kenya.

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Court order keeps SPORTPESA paybills on as battle for the brand rages on

The High Court order granting gaming company SportPesa the right to operate is still in force despite industry regulator’s letter purporting to revoke its license.

Conspiracy against foreign investors?

SportPesa which is being operated by Milestone Games Limited obtained the order on December 3, 2020, a day before the Betting Control and Licensing Board attempted to cancel the company’s license through a letter.

Fred Matiangi
CS Fred Matiangi who had choice words for Sportpesa

This means, the company’s paybills – 955100 and 5212121 – are still on despite the regulator’s attempts to shutdown SportPesa’s business. SportPesa’s domain ke.sportpesa.com is also still operational even as the back and forth over the license persists.

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In her ruling, Judge Pauline Nyamweya took issue with the regulator for attempting to stop the company from conducting its business and issuing summons to its directors despite the matter pending before court.

“The ex parte {Milestone Games} has provided evidence that during the pendency of the stay orders granted herein on 16th November 2020, the respondent has taken further actions on the dispute before this court by its letter dated 24th November 2020,” the judge stated in her ruling.

The betting industry has been hard hit by the regulator’s decisions since last year, after the government opted to shut down some of the players allegedly over tax and ownership issues. The move has drawn condemnation across various circles that termed it harsh and counterproductive in improving the country’s business environment.

Sportpesa CEO Ronald Karauri
Past jackpot winner Abisai and SportPesa CEO Ronald Karauri

The brand which was previously owned by Pevans East Africa, will remain operational until a matter before court is heard and determined on January 25, 2021. The BCLB therefore risks being in contempt of court if it attempts to shut down the company’s business.

SportPesa is back!

SportPesa which used to sponsor the Kenyan Premier League, Gor Mahia and AFC Leopards among other sports organizations was forced to fire nearly all its staff in November 2019 following the protracted war.
The company has since maintained its innocence after being cleared by the Tax Appeals Tribunal in a matter in which Kenya Revenue Authority had accused it of underpaying tax.

“In the circumstances in order to prevent the abuse of the process of court and in the interest of justice, it is my finding that the extension of the stay orders is merited and justified.”

In a letter dated November 24, the BCLB had summoned Milestone Games Limited’s Operations Manager Bernard Chauro asking him to show cause why the company’s license should not be cancelled.
SportPesa, a giant betting brand, is at the centre of the dispute that has drawn in the industry regulators and several rivals who aim to stop the use of the name in the local market.

 

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Conspiracy against foreign investors?

The big affair with Sportpesa was not enough, it is obvious that other foreign companies will not be spared either. A scandalous attempt is underway to connect a successful and recognized company with illegal activities.

SportPesa’s parent company drags businessman Paul Wanderi Ndung’u to court for defamation

Foreign companies that contribute to the budget of Kenya with hundreds of millions of shillings are again the target of local powerful people who are trying to take over the market with lies. The big affair with Sportpesa was not enough, a scandalous attempt is underway to connect a successful and recognized foreign company with illegal activities.

Sportpesa CEO Karauri

It couldn’t be more obvious that this is a set-up, because we know what’s the easiest way to discredit someone and reduce their influence on the market – placing lies through a filthy media campaign (gotta love githeri media), in which the competition is accused of alleged illegal actions. The court annulled many decisions against Sportpesa, but the conspiracy against them continues.

SportPesa is back!

It is also clear that other foreign investors who provide the stability of the economy with their business will not be spared. There are too many similarities, again, not to think that there is a domestic lobby group that is trying to eliminate competition and take over the business in an unfair way by creating unprofessional fake scandals.

Fred Matiangi
Matiangi with Chipukeezy

This creates a hostile environment for all foreign investors. How will other foreign investors react to this kind of news? Will Kenya be left out of future foreign investment due to personal interests in the moment when the state budget is empty?

SportPesa CEO Ronald Karauri might not lose his Range Rover despite Gor Mahia lose to Hull City

Why are companies that provide 55,000 jobs being forced out of the market, and annually pay more than 60 million dollars into state and local government budgets in the name of fiscal and parafiscal charges.
Companies from this industry are big donors of Kenyan sports and generally have a great positive impact on the community, and they especially stood out with donations during the coronavirus pandemic.
What is behind all this? We will see in the coming day.

 

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