The Nexus Between Gambling Tax and the Gross Domestic Product in Kenya

Authors

  • Tobias Olweny Department of Economics, Accounting and Finance, School of Business, Jomo Kenyatta University of Agriculture and Technology, Kenya.

DOI:

https://doi.org/10.55217/102.v15i2.551

Keywords:

Betting, Lottery, Gaming, Prize competitions, Gross domestic product, Tax rates.

Abstract

This study seeks to assess the relationship between the tax rates imposed on each sub-sector, i.e. betting tax, lottery tax, gaming tax and prize competition tax, and the gross domestic product. The target population for this study include all licenced gambling operators in Kenya. Secondary data was obtained via request from the relevant authorities in Kenya. Regression analysis was performed on the data to model the relationship between the variables. It was found that an increase in the monetary amount of gambling taxes levied from winning punters and gamers would likely lead to a decrease in the GDP, whereas the same increase in the monetary amount of gambling taxes levied from winning lottery players and monetary prize winners would likely lead to an increase in the GDP. The study recommends that a moderate gambling tax regime should be imposed on all other operators except lotteries. Lottery winnings and prize competition winnings tax rates should be increased whereas betting winnings tax rates should be decreased.

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Published

2022-09-12

How to Cite

Olweny, T. . (2022). The Nexus Between Gambling Tax and the Gross Domestic Product in Kenya. Journal of Accounting, Business and Finance Research, 15(2), 41–65. https://doi.org/10.55217/102.v15i2.551