Corruption

SportPesa Still Operating But Illegally

Betting is going on uninterrupted through the SportPesa platform despite the tough talk from authorities.

Several punters are able to place bets on various games through the platform, the Nation has established.

The betting company is rocked by boardroom wrangles and is also battling with the regulator over licence issuance.

Interior Cabinet Secretary Fred Matiang’i is looking to block the company’s return to the local gaming market. Sportpesa has been fighting the Betting Control and Licensing Board’s (BCLB) decision to block its return to the local gaming industry, while its owners fight over control of the company.

Last week, Dr Matiang’i vowed not to allow the return of any betting firm whose licence was cancelled last year following a nationwide crackdown.

Sportpesa was among 19 firms barred from operating in the country and has since been trying to make a comeback.

A nasty boardroom war broke out along the way, and the firm has found itself in court battles as shareholders fight for control of the company that was once among Kenya’s biggest revenue generators. Among the contested issue is how the Sportpesa brand was sold by its initial holding company, Pevans East Africa, to Milestone Games Limited for Sh14 million.

And separately, Milestone has sued BCLB for probing the transaction and threatening to stop the return of Sportpesa on account of the brand name sale.

High Court judge Pauline Nyamweya on December 3 issued an order barring the BCLB from stopping Sportpesa operations or summoning the betting giant’s managers until she has determined the suit.

On Sunday, the Nation was able to deposit and withdraw funds in a Sportpesa account and place bets, an indication that the BCLB could have bowed to abiding by the court order, allowing the gaming firm to continue operating.  BCLB initially summoned Milestone’s managers on October 31 to explain why their licences should not be cancelled.

Milestone obtained a court order barring the summons or revoking of its licence on November 16.

Yesterday, Interior ministry officials referred the Nation to the BCLB CEO Peter Mbugi, who referred us to the regulator’s Chairman Cyrus Maina.

Mr Maina declined to comment on the issue, saying it could be construed to be an assault on the court process.

Sportpesa CEO Ronald Karauri had not responded to our calls or texts by the time of going to press.


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