Gambling houses must pay levies, rules High Court in Namibia
Judge rules against Gambling House Association’s bid to dodge levies amid illegal gambling crisis.
Namibia.- Namibia’s High Court has dealt a heavy blow to the Gambling House Association of Namibia (GHAN), ruling that licensed gambling operators must pay levies on their profits, as required by law.
In a firm judgement handed down by Judge Nate Ndauendapo, the court ordered GHAN and its members to comply with the Gaming and Entertainment Control Act of 2018, specifically, the clause that mandates a 10 per cent levy on profits from gambling operations. The ruling applies retrospectively from December 2021 and includes interest.
GHAN had attempted to wriggle free of the obligation, arguing that no levies should be imposed until all illegal gambling houses in Namibia had either been legalised or shut down.
They also challenged the constitutionality of the 2018 Act, claiming it gave the Minister of Environment and Tourism too much discretionary power. Both arguments were shot down in court.
Moratorium on levies
In a desperate legal gamble, GHAN leaned on a 2020 High Court settlement agreement, which had placed a moratorium on levies until illegal operators were dealt with. But Judge Ndauendapo declared that the agreement had been rendered obsolete when the 2018 Act came into force, superseding the old 1994 Casinos and Gambling Houses Act.
“The only way to be exempted from paying levies is to apply to the minister for an exemption,” Ndauendapo said, according to The Namibian publication.
“The [association] and their members have not submitted such an application to the minister.”
GHAN’s secretary, Jaco Horn, had painted a bleak picture of the legal gambling landscape, stating that the industry is overrun by illegal operators whose machines outnumber licensed ones nearly tenfold.
But said the judge: “In sum, the gambling house industry is dominated by illegal gambling houses who are increasing their profit margins by unlawfully avoiding their obligation in terms of government-induced levies, value-added tax, taxes and applicable laws.”
Despite acknowledging the regulatory chaos caused by illegal competition, the court ruled that legal obligations cannot be waived.
The association’s legal team, led by senior counsel Reinhard Tötemeyer, lost the case with costs awarded to the state, represented by senior counsel Vincent Maleka.
