Dear Mr President, the Kenyan gaming industry will soon breathe its last

 We in casinos cannot sustain the 35 per cent gaming tax because we have employed over 10,000 whom we pay hundreds of millions in salaries every month

Dear Mr President,

I am a Kenyan who has worked in the gaming industry specifically in casinos for over 25 years. I am deeply saddened by the drastic step taken by the National Assembly on its last sitting to raise the betting tax nearly three-fold to 35 per cent.

This is disastrous for the growth of the gaming and betting industry. It is however not too late for you to reconsider the decision, and there are compelling reasons why you should.

I would like to appeal to you Mr President not to sound the death knell on the gaming industry by signing to law imposition of the proposed tax on the entire industry. The gaming industry in Kenya has four sub-sectors which include gaming, lotteries, sports betting and prize competitions.

Investor insecurity has reverberated across the sector due to the uncertainty of whether they will be in existence next year or not and we cannot plan for expansion or growth.

The current taxation - which only commenced in 2017 - stands at 5 per cent for lotteries, 7.5 per cent on betting tax, 12 per cent for gaming and 15 per cent for prize competitions.

Casinos which fall under gaming sub-sector currently pay 12 per cent tax on revenues. We in Casinos cannot sustain the 35 per cent gaming tax because have employed over 10,000 whom we pay hundreds of millions in salaries every month, and from which the government earns millions in income taxes. We pay many different levies for utilities, security, food and beverages licenses, and 30 per cent in corporation tax like all other companies.

It should be easy to see that we are already contributing immensely to the national kitty, and that the additional taxes do not come close to achieving the intended purpose of stricter regulation. Regulation in casinos has been in place in Kenya for over 40 years.

It is strong and has ensured that there are no underage players allowed into the casinos, leave alone playing.

Overburdening the gaming sector with this tax will have these four distinct impacts. First, we are definitely driving away licensed gaming operators out of Kenya to friendlier countries, or out of existence completely.

We are also encouraging the mushrooming of illegal and un-regulated gaming activities because the taxation proposals make it impossible to operate within the law and still be profitable.

Thirdly, we are likely to be exposing Kenyans to off-shore gambling companies including off-shore casino games, which will inadvertently translate to even lower earnings for the country. In the age of the internet and online money transfers, gamers have a world of options, so the least we can do is try to offer them local options.

Lastly, the losses for the exchequer arising from the above factors cannot be underestimated considering that our current level of tax contribution from gaming industry. The results of which are loss of jobs and loss of tourism opportunities in cities that have developed around the gaming industry such as Lamu.

Let us fight together for our Kenyan space, engage and consult to look for alternative ways of strengthening the regulatory body to deal with the emerging betting issues especially online and mobile betting to ensure a sustainable economy and youth protection.

Judith Kiragu is the Director Golden Key Casino, Mombasa