In the midst of shareholder disputes, the High Court banned the use of the SportPesa name in Kenya’s gaming industry. This decision is a setback for Milestone Games Ltd., who had been given permission to manage the well-known brand.
The temporary ruling suspending the license granted to Milestone Games by the Betting Control and Licensing Board (BCLB) to use the SportPesa name for the calendar year ending in June 2023 was issued by Justice Anthony Ndung’u.
Businesswoman Asenath Wachera Maina, who owns a 21 percent ownership in Pevans East Africa, which launched the SportPesa brand and launched the country’s first sports gaming operation, petitioned for the freeze.
After losing its license in 2019, Pevans East Africa halted business, in part because of claims of unpaid taxes.
Despite criticism from the regulator, the SportPesa brand made a comeback on October 30, 2020, through Milestone Games, which is owned by several of the Pevans stockholders, notably Ronald Karauri.
However, the brand received its initial nod from BCLB last month, setting off a legal battle for the gaming company’s essential assets, including its trademark and web domains.
Ms. Maina and businessman Paul Wanderi Ndung’u, who owns a 17 percent stake in Pevans East Africa, have charged Milestone Games of obtaining the license under mysterious circumstances while the nation was preoccupied with the elections on August 9.
She has criticized the BCLB, claiming that it behaved unreasonable and in violation of gambling regulations by allowing Milestone to use the SportPesa trademark.
She added that Milestone Games was previously licensed to trade as Milestone Bet and that a deal of May 26, 2022, that allowed the current use of SportPesa brand was not backed by Pevans East Africa’s board.
“From the disclosed facts, I am satisfied that an arguable case is established that requires ventilation at an inter-partes hearing. The leave sought is thus merited and is hereby granted,” Justice Ndung’u said.
The judge said it was prudent to suspend the licence pending the determination of the court fight over the ownership of SportPesa. The judgment, he said, might be rendered useless because Ms Maina may not recoup earnings made by Milestone Games for using the brand should her case be successful.
“It is hereby ordered that leave so granted do operate as a stay of implementation and thereby suspend the operation and use of the impugned bookmakers name licence number 0000448 issued to Milestone Games Limited to trade as SportPesa pending the hearing and determination of the substantive judicial review application,” the judge said.
A list of betting firms authorised to operate in the 2022/23 fiscal year shows that Milestone Games –which operates under the SportPesa brand— has been awarded licence number 0000448. The regulator published the updated list of authorised betting firms on its website.
Milestone Games has in the past two years relied on a temporary court order to operate amid battles over ownership of the SportPesa trademark.
The key assets are listed as the SportPesa trademark, websites bearing the same name, shortcodes 79079 and paybill numbers 9555700 and 955100.
