Sportpesa was among 27 betting firms that had their trading licences revoked by the government in July last year due to failure in meeting tax compliance policies. But even after being cleared two months later by the Kenya Revenue Authority making it viable to get back its licence, the firm shut down operations in Kenya in September 2019 citing heavy taxation after the government’s move to impose a 20% withholding tax on all winning bets.
However, minutes past 7pm, SportPesa CEO Captain Ronald Karauri announced the return of the betting firm’s operations in the country, saying they will now operate under a new Betting Control and Licensing Board(BCLB) licence. “Sportpesa is back! I am happy to announce that the Sportpesa brand is back under a new BCLB liicence holder,” tweeted Captain Karauri.
Mr Karauri said SportPesa will uphold the highest standards of service and responsible gaming, adding that they are ready to work closely with BCLB and all other stakeholders in the gaming firm.
” As market leaders, Sportpesa will focus on upholding the highest standards of service and responsible gaming. We look forward working closely with BCLB and all other stakeholders,” said CEO.
“We are excited to explore a wide range of partnerships in Kenya over the coming weeks and months, which will prioritise the development of sports in communities across our great country,” he added
Prior to its exit from the country , the betting firm sponsored the Kenyan Premier League, Kenya’s domestic top tier club competition, the national football teams Harambee Stars and Harambee Starlets.
It was also a shirt sponsor of Kenya Sevens Rugby team, Gor Mahia and AFC Leoapards as well as Nakuru All Stars, a second division team.
Just a day after the betting firm confirmed to his Punters about the return to the Kenyan market, the news went viral to every social media platforms celebrating the sudden come-back after a period of one year off the market. Sportpesa is dead, Long live Sportpesa. The emotion roller- coaster of Kenyan bettors continued as their favourite sports firm returned on Friday. But the company was blocked by the Betting Control and Licensing Board of Kenya shortly after.
Effectively, Milestone Games Limited has been stopped by BCLB operating under Sportpesa brand. According to the regulator, the trade name was appropriated to PEVENS EAST AFRICA LIMITED which the BCLB considered to be the rightful owner of the ‘Sportpesa’ trademark. According to Africa Business daily, though, the regulator confirmed that Milestone was Authorized to operate the Sportpesa Global Holdings whose directors are also executives at Pevans East Africa. The BCLB itself had this to say for on media. Another media outlet interested in the current predicament: “We note that Milestone Games Limited has been authorized to use the trademark ‘Sportpesa’ by M/s Sportpesa Global Holdings Limited whereas, during the 2020/21 financial year renewal application, the board authorized the use of the name ‘Milestone Bet’ to yourselfs.”
This is unfortunate news and hopefully a temporary setback for Sportpesa CEO Ronald Karauri. MR Karauri confirmed earlier on Friday that the brand was opening a new chapter and it had become a “BCLB license holder.” Apparently not, as chairman Cyrus Maina had to write to Milestone operations manager Bernard Chauro and his inform him about the change of plans. The exact content of the message stated: “According to information in our posessession, the trade neme ‘Sportpesa’ belongs to M/s Pevans East Africa Limited. The said company has filrd an appeal in Court of Appeal in Nairobi no. 471 of 2019. The matter before the Court of Appeal conteststhe issuance of the gaming license to Pevans East Africa. The matter was scheduled to be heard on November 16, 2020.” BCLB chairman Cyrus Maina.
The letter ended by arguing that Milestone was effectively prohibited to use the ‘Sportpesa’ name until such a time the Court of Appeal had made a decision on a pending appeal and until the Board, that is the BCLB, had reached a decision whether Milestone can continue trading under ‘Sportpesa’ and the associated ke.sportpesa.com and sportpesa.co.ke domains. Milestone May Continue to Operate its own Name.
According to regulators, Milestone may still continue trading under ‘Milestone Bet,’ but not with any of the aforementioned domains. According to Maina, the Prohibition was necessary to avoid confusion among the general public. Sportpesa is the most popular sports site and gaming brand in Kenya with an estimated customer based of 12 million people. When Karauri announced the return of the sportsfirm, the news was well-received among the community.
As GamblingNews understand these developments properly, BCLB is aware that Pevans allowed Milestone to operate under the ‘SportPesa’ brand name, but the Board prohibits it hence it creates confusion. All of this could mean that SportPesa fans could potentially need to wait until November 1 for a resolution of the present situation. Bearing in mind that the case is not yet heard and determined, the board directed Milestone Games Limited to desist from using the name Sportpesa until the caseis heard and instead use its name Milestone Bet.
“You are authorised to continue trading as Milestone Bet, through the domains www.milestonebet.co.ke, www.milestone, games.co.ke, and www.milestonegames.com,” he said.
The board also prohibited Milestone Games Limited from using the tradename Sportpesa, the domains www.ke.sportpesa.com, www.sportpesa.co.ke, short codes 29050and 79079, Pay Bill numbers 521521, 9555700 and 955700 untill such a time when the Court of Appeal shall make a determination on the pending matter in court.
“In the light of the afoeogoing, the board is of the opinion that Milestone Games Limited will create confusion to the general public to which tradename the company wishes to adopt. The reason being there is a variance in the tradename the Board approved vis-à-vis the name Milestone Games Limited Currently wishes to adopt,” he said.
The board had suspended Sportpesa’s licence back on July 1,2019, claiming the firm owed millions in unpaid options were also suspended.
In the meantime, that was the drama surrounding Sportpesa in Kenya, a firm that everyone awaits its comeback.
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