SportPesa’s Kenyan comeback crumbles on prohibited brand transfer
Sports betting operator makes short-lived return to market on Milestone Games licence before regulator steps in
SportPesa’s return to the Kenyan betting market lasted less than 24 hours after the country’s Betting Control and Licensing Board (BCLB) prohibited the relaunch of the brand and its online domains.
The operator relaunched in Kenya on 30 October under new-look parent company Milestone Games following a 16-month absence from the market due to an arduous tax dispute in 2019.
SportPesa CEO Ronald Karauri even made an official announcement on Twitter, suggesting the operator would adhere to the “highest standards of service and responsible gambling”.
SportPesa is back! I’m happy to announce that the SportPesa brand is back under a new BCLB license holder. https://t.co/qDIJ37kP3b #SportPesaisBack 🇰🇪🇰🇪🇰🇪🇰🇪
— Hon Captain Ronald Karauri (@KarauriR) October 30, 2020
However, the BCLB soon got in touch to say that Milestone Games was only authorised to launch an online gambling service under the Milestone Bet brand.
Milestone Games was granted permission to use the SportPesa name by SportPesa Global Holdings Limited, but BCLB documents suggest brand rights are instead owned by Pevans East Africa Limited.
Pevans East Africa Limited has filed a case in Nairobi’s Court of Appeal to be heard on 16 November.
Until the appeal has been heard, the BCLB has prohibited use of the SportPesa trade name under the Milestone Games licence, as well as its related domains, short codes and pay bill numbers.
The operator cut more than 450 staff members in Kenya following its withdrawal from the market in October 2019 and saw its sponsorship deals with Everton and the Irish FA terminated in February.