DCI Opens Probe Against SportPesa over Claims of Defrauding Kenyans

Detectives from the Directorate of Criminal Investigations (DCI) have opened a probe against the suspended betting company, SportPesa over fraud allegations.

The DCI is looking into claims that the recently signed partnership between SportPesa and Milestone Games Ltd. was used to defraud Kenyans of their hard-earned cash.

Business Daily reports that the DCI obtained a court order to freeze the use of pay bill numbers, USSD codes, and shortcodes that SportPesa provided to Milestone in its quest to resume operations in Kenya.

Milimani Senior Principal Magistrate David Ndungi directed Safaricom to disclose to investigators the owners of the pay bill numbers and codes. 

The telecom company was further ordered to supply the DCI with financial statements on the money sent to the pay bill numbers and codes since October 1st.

“The board [the Betting Control and Licensing Board] is of the view that the said pay bill numbers are being used in fraudulent gaming activities. We, therefore, request to conduct investigations as to how these pay bills, USSDs, and shortcodes were activated and transferred from SportPesa to Milestone Games Ltd,” the DCI said in its court documents.

“The pay bill numbers, USSD codes, and shortcodes were activated and transferred from Pevans (SportPesa) to Milestone games fraudulently. The same is being used to trade fraudulently even though the Betting Control and Licensing Board (BCLB) didn’t approve the license for SportPesa.”

Milestone claims it was authorized by SportPesa Global Holdings Limited (SGHL) to trade under the name SportPesa and also use the domain names, pay bill numbers, and shortcodes previously used by Pevans East Africa, the company behind SportPesa Kenya.

SportPesa Global, which owns the European and Tanzania gaming businesses, recently claimed to also own the SportPesa brand, a claim that sparked protests from local shareholders who insist that Pevans East Africa is the owner of the trade name.

On Saturday, BCLB blocked the SportPesa-Milestone deal, saying the trade name (SportPesa) is owned by Pevans East Africa, which ceased operations in July last year.

The regulator accused the two companies of going behind its back to obtain clearance for SportPesa’s return to the Kenyan betting market.

This came a day after SportPesa CEO Ronald Karauri announced the company had resumed operations in the country.

Many Kenyan gamblers placed bets on the platform between Friday and Saturday before BCLB blocked the partnership.

“The BCLB are apprehensive that Kenyans are being defrauded by SportPesa and Milestone using numbers provided by Safaricom,” the DCI noted.