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Sports development affected by online betting hurdles
New Market Players. Betyetu Uganda General Manager Paul Ssozi (L) and the Head of Communications Precious Asiimwe at the launch of the company at Kampala Serena Hotel last month. PHOTO BY JB Ssenkubuge
What you need to know:
- All Sport. Despite the challenges, however, online gaming is projected to grow which should be good news for the sports entities that expect support from betting companies.
KAMPALA.
With online betting gaining a strong foothold in Uganda, the ripple effects to sports development have not been greatly felt because of a number of hurdles that bar companies from realising enough profit.
In Kenya, rugby and football were among the big beneficiaries from huge sponsorship deals by betting giant SportPesa and growth of those games could be felt and seen.
However when the government hiked the company’s betting revenue tax rate from its former 7.5% to 35%, the sponsorship packages were drastically cut.
The tax hike was part of the government’s plan to harmonise all gambling taxes (betting, gaming, lotteries and prize competitions) at a uniform rate of 35%.
Actually, SportPesa scrapped all deals with sports federations in the aftermath of the hike, only to reconsider the decision later.
Even then, it was not business as usual because their sponsorship budget was drastically cut, for example the money given to the Kenyan Premier League (KPL) was reduced by K.Shs5m (Shs185m).
In Uganda, sports betting firms are decrying the high levels of taxation that include a gaming tax of 20%, withhold tax of 15% plus the corporate taxes as well as the high costs slapped by telecoms on mobile money transactions.
The Ugandan market is moving away from the traditional betting process commonly known as ‘kapapula’ with most of the companies like Top Bet, Gals and Kings Bet among others conducting business online.
Apart from taxation, the gaming companies note that the cost of using mobile money in Uganda is too high and complementary services are difficult to put in place, the cost of Ussd, bulk sms is higher than in other countries in the region.
Preaching accessibility
The General Manager of Betyetu Uganda Paul Ssozi says the telecoms should make mobile money more easy and affordable to use, make sure there is internet penetration by making it more affordable for this business to thrive and in the end benefit sports development.
“Online business is gaining ground in Africa,” said Ssozi. “It is a source of revenue for all and the biggest advantage of online gaming is it has a full audit trail due to mobile money and other banking transactions therefore it will ensure full compliance to government regulations compared to gambling dens.”
He goes on to say that as the latest company in the market they are committed to supporting sports development in Uganda as online gaming grows.
“Later in the year as Betyetu Uganda we hope to launch various projects anchored on three main agendas that include growth and development of sports talents.
“We want to inspire young sportsmen and women in the country, urging stakeholders to participate and invest in sporting activities in the country.
Embracing local sports
“Most importantly, Betyetu will aim to rallying Ugandans to support and embrace their own local sports teams and personalities the same way they do to those in the English premier league,” added Ssozi.
Despite the challenges, however, online gaming is projected to grow which should be good news for the sports entities that expect support from betting companies.
“Due to its accessibility, ease of use and innovation in terms of products, we expect online to grow strongly in the coming months and years,” says an optimistic Ssozi.
Nevertheless, Betyetu remain positive about the market and are looking to the future with renewed hope as they look forward to offering their clientele a great gaming platform that makes both playing an winning easy.
