In Kenya, a parliamentary committee has reportedly approved legislation that would impose a 10% tax on winnings from lotteries and sports betting and, conversely, cut duties on operators' income by more than half, to 15%.

According to information received from South African betting companies, the Finance and National Planning Committee approved the changes contained in the proposed Tax Legislation (Amendment) Bill 2018, following an appeal by the National Treasury, and the proposed legislation must now be voted on by the full National Assembly.

If subsequently approved by the 349-member body, the Tax Legislation (Amendment) Bill 2018 would require gaming and betting companies in Kenya to begin withholding 10% of all player winnings before turning them over to the government, while reducing duties on operators' income from 35% to 15%.

The newspaper reported that the Finance and National Planning Committee was charged with reviewing all tax amendments in the East African nation, and it approved the changes despite objections from the Labor and Welfare Committee and its own proposal to set the winnings tax at 20%.

"To increase the tax base to include winnings, which represent approximately 88% of all income generated from these activities, and because the taxation is being introduced for the first time, the [Finance and National Planning] Committee felt that 20% was too high, and therefore adopted 10% for residents and non-residents," Joseph Limo, chairman of the Finance and National Planning Committee, said in a statement.

Business Daily Africa reported that the successful passage of the Tax Legislation (Amendment) Bill 2018 will be a boon to local gambling and sports betting operators because it will reduce from 25% to 5% the amount companies must contribute to support social and charitable causes, while maintaining the current corporate tax rate of 30%.