Service providers split from SportPesa to leave international future in doubt
Operator’s Isle of Man holding firm could lose incorporated status within eight weeks if it does not find replacement service provider
SportPesa’s Isle of Man tax residency could be under threat after its partner resigned from providing services to the Kenya-focused operator.
Isle of Man-based Equiom, which has provided corporate services to locally registered holding firm SportPesa Global Holdings Limited (SGHL), wrote a letter to the operator confirming it would resign from the role in December.
Equiom served as a registered agent for the operator and maintained company records since 2015.
Under Isle of Man law, incorporated businesses must have a registered agent on the island to benefit from both international market access, minimal disclosure requirements and an advantageous 0% tax rate.
Registered agents undertake administrative procedures and provide secretarial services, including filling in and submitting certain applications to the island’s registrar of companies, maintaining company documents and following up on company activities.
SGHL has a maximum of eight weeks to locate a suitable replacement for Equiom or lose incorporated status on the Isle of Man, a deadline which elapses later this month.
Elsewhere, London law firm Ince Gordon Dadds, which has acted as company secretary for SportPesa in the UK since 2017, has also resigned.
However, EGR understands this is to allow SportPesa to carry out its secretarial activities in-house and does not impact its overall relationship with the law firm, including serving as its registered office. which remains unchanged.
It is also understood that international auditing firm Deloitte has quit as the operator’s auditors, departures which mean SportPesa is without regulatory and financial reporting resources at a crucial time for the business.
SportPesa is currently facing questions from Kenyan authorities over the transfer of its Kenyan sports betting licence to a separate entity.
SportPesa currently has operations in the UK, Italy, Tanzania and South Africa, however its Kenyan operations account for more than 97% of the company’s annual revenue, making it a key market for the business.
EGR has contacted SportPesa for comment.