Gambling operators lose bid to dodge levies
Application dismissed with costs
The court ruled that all licensed operators are obligated to pay the statutory levies required under the Gaming and Entertainment Control Act.
The Windhoek High Court has dismissed an application brought by the Gambling House Association of Namibia and its members, many of whom have been in arrears or operating in defiance of the law upholding the provisions of the recently enacted Gaming and Entertainment Control Act (GECA).
The court dismissed the application with costs, ordering the applicants – the Gambling House Association of Namibia and Irmgard Fourty CC – to pay statutory levies due by them in terms of the GECA and the regulations effective 1 December 2021.
The ruling moreover clarified the obligations of licensed gambling operators amid a shift in the regulatory landscape of the gambling industry.
The court's decision stems from a dispute that arose out of a settlement agreement reached in June 2020 between the applicants and the environment and tourism ministry.
Under the agreement, the applicants were exempted from paying certain levies until all illegal gambling houses had either been legalised or shut down.
However, with the promulgation of GECA in 2018, which came into effect in December 2021, the 1994 Gambling Act was repealed, prompting the court to rule that the earlier agreement had “fallen away by operation of law”.
The Gambling House Association, representing a number of licensed gambling operators, argued that sections 40A, 57 and 88 of GECA are unconstitutional, contending that they infringe upon rights enshrined in the Namibian Constitution, particularly property rights and the rule of law.
They further argued that the minister’s failure to act on illegal gambling houses had compelled them to pursue legal action, leading to the original court order they now sought to enforce. However, the court ruled that with the enactment of GECA, the original order had become moot, and all licensed operators are now required to comply with the new statutory levy regime under the updated law.
The court found that the applicants failed to demonstrate how the contested sections of GECA were unconstitutional and affirmed that all licensed operators are obligated to pay the statutory levies required under GECA.
Flexible legislation
The respondents argued that the evolving nature of the industry, particularly due to digital advancements, demands a regulatory framework that allows the minister to adapt and introduce new licence categories without repeatedly amending legislation through parliament.
Such flexibility, they contended, is essential to combat the proliferation of illegal gambling operations, which undermines the legitimacy of lawful operations.
While acknowledging that some operators had made substantial investments under previous laws, the respondents argued that expectations of perpetual licence validity were unfounded.
The regulatory updates, they maintained, are aimed at securing the integrity of the gambling sector and ensuring that long-term public interest is prioritised over private gain.
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The court dismissed the application with costs, ordering the applicants – the Gambling House Association of Namibia and Irmgard Fourty CC – to pay statutory levies due by them in terms of the GECA and the regulations effective 1 December 2021.
The ruling moreover clarified the obligations of licensed gambling operators amid a shift in the regulatory landscape of the gambling industry.
The court's decision stems from a dispute that arose out of a settlement agreement reached in June 2020 between the applicants and the environment and tourism ministry.
Under the agreement, the applicants were exempted from paying certain levies until all illegal gambling houses had either been legalised or shut down.
However, with the promulgation of GECA in 2018, which came into effect in December 2021, the 1994 Gambling Act was repealed, prompting the court to rule that the earlier agreement had “fallen away by operation of law”.
The Gambling House Association, representing a number of licensed gambling operators, argued that sections 40A, 57 and 88 of GECA are unconstitutional, contending that they infringe upon rights enshrined in the Namibian Constitution, particularly property rights and the rule of law.
They further argued that the minister’s failure to act on illegal gambling houses had compelled them to pursue legal action, leading to the original court order they now sought to enforce. However, the court ruled that with the enactment of GECA, the original order had become moot, and all licensed operators are now required to comply with the new statutory levy regime under the updated law.
The court found that the applicants failed to demonstrate how the contested sections of GECA were unconstitutional and affirmed that all licensed operators are obligated to pay the statutory levies required under GECA.
Flexible legislation
The respondents argued that the evolving nature of the industry, particularly due to digital advancements, demands a regulatory framework that allows the minister to adapt and introduce new licence categories without repeatedly amending legislation through parliament.
Such flexibility, they contended, is essential to combat the proliferation of illegal gambling operations, which undermines the legitimacy of lawful operations.
While acknowledging that some operators had made substantial investments under previous laws, the respondents argued that expectations of perpetual licence validity were unfounded.
The regulatory updates, they maintained, are aimed at securing the integrity of the gambling sector and ensuring that long-term public interest is prioritised over private gain.
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