Casinos demand crackdown on illegal gambling houses
Licensed gambling houses and casinos, claiming they have invested more than N$80 million in the industry, argue that the environment, forestry,and tourism is not doing enough to shut down illegal gambling establishments.
In an application at the Windhoek High Court, they said their income has been severely affected, making it difficult for them to stay afloat.
The Gambling House Association of Namibia (Ghan) reports that some of its 71 licensed members have experienced substantial income losses over the past six years, primarily due to limited regulation of illegal gambling houses.
In September 2022, Ghan, represented by their attorney Shaun Ellis, approached the Windhoek High Court for relief on this issue, among others.
Their case, initially scheduled for a ruling last week, challenges the regulatory amendments under the 2018 Gaming and Entertainment Control Act (GECA) and will now be heard by Judge Nate Ndauendapo at the end of January 2025.
Steep fees
The law requires annual fees for licensed gambling establishments, which the association opposes, seeking exemption until all illegal gambling houses in Namibia are either legalised or shut down.
According to court documents, annual licensing fees were significantly amended with the implementation of Government Notice No. 95, setting an annual gambling house licence fee of N$10 000 per gambling machine.
However, illegal gambling houses pay no fees, levies or income tax. In a sworn response, the environment minister Pohamba Shifeta argued that the law mandates fees to support industry regulation and that the Gambling Board of Namibia, not the minister, now oversees the industry.
“My role as minister is limited to setting fees, not granting operators exemptions from them.”
Ghan has explained that one of the main reasons for seeking legal intervention is the heavy financial burden faced by licensed gambling houses, while illegal establishments continue to expand without regulation.
According to Ghan, the new rules grant Shifeta discretionary powers, allowing him to impose new types of licenses and requirements. Before the amendment to Section 40A, the minister’s powers were more restricted and focused on specific regulatory functions linked to existing laws or regulations.
In an application at the Windhoek High Court, they said their income has been severely affected, making it difficult for them to stay afloat.
The Gambling House Association of Namibia (Ghan) reports that some of its 71 licensed members have experienced substantial income losses over the past six years, primarily due to limited regulation of illegal gambling houses.
In September 2022, Ghan, represented by their attorney Shaun Ellis, approached the Windhoek High Court for relief on this issue, among others.
Their case, initially scheduled for a ruling last week, challenges the regulatory amendments under the 2018 Gaming and Entertainment Control Act (GECA) and will now be heard by Judge Nate Ndauendapo at the end of January 2025.
Steep fees
The law requires annual fees for licensed gambling establishments, which the association opposes, seeking exemption until all illegal gambling houses in Namibia are either legalised or shut down.
According to court documents, annual licensing fees were significantly amended with the implementation of Government Notice No. 95, setting an annual gambling house licence fee of N$10 000 per gambling machine.
However, illegal gambling houses pay no fees, levies or income tax. In a sworn response, the environment minister Pohamba Shifeta argued that the law mandates fees to support industry regulation and that the Gambling Board of Namibia, not the minister, now oversees the industry.
“My role as minister is limited to setting fees, not granting operators exemptions from them.”
Ghan has explained that one of the main reasons for seeking legal intervention is the heavy financial burden faced by licensed gambling houses, while illegal establishments continue to expand without regulation.
According to Ghan, the new rules grant Shifeta discretionary powers, allowing him to impose new types of licenses and requirements. Before the amendment to Section 40A, the minister’s powers were more restricted and focused on specific regulatory functions linked to existing laws or regulations.
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