Namibia high court upholds levies on licensed operators
The gambling association members must settle outstanding fees from December 2021.
Namibia.- The Gambling House Association of Namibia‘s bid to block the Minister of Environment and Tourism from imposing levies on licensed gambling houses has failed following a high court ruling in favour of the latter.
In a landmark decision, Judge Nate Ndauviego Ndauendapo of the Namibian High Court ruled that licensed gaming operators must pay the gaming board statutory levies on their earnings. The judge ordered the operators to settle outstanding levies on profits from their gambling activities from December 2021, along with the accrued interest.
The ruling is a setback for the country’s gambling association, which petitioned the court to block the minister from imposing levies on licensed gambling houses until all illegal establishments are either legalised or shut down.
A key part of the association’s claim was based on a settlement agreement from a prior high court case, which directed the minister to crack down on illegal gambling houses in line with the 1994 Casinos and Gambling Houses Act.
However, Ndauendapo noted that the Gaming and Entertainment Control Act of 2018, which provides the framework for the country’s current gaming regulation, superseded the earlier settlement agreement.
The judge ruled that the court could not uphold the settlement agreement since the gambling board wasn’t a party to the original case, and the new law had taken effect.
Ndauendapo said: “By upholding the settlement agreement, the judiciary will be usurping the powers delineated by the Constitution to the legislature. With the introduction of the 2018 law, the 1994 Casinos and Gambling Houses Act was abolished, and, consequently, the settlement agreement and court order of June 2020 have fallen away by operation of law.”
The court also rejected the association’s request to declare part of the 2018 Gaming Act unconstitutional. The Act empowers the minister to grant additional licences beyond those specified for casinos and gaming houses, a provision the association isn’t satisfied with.
Ndauendapo said that the 2018 law gives the minister discretion to include or exempt certain gaming machines, individuals, or activities from regulatory requirements.
The judge dismissed the association’s case against the gambling board, environment ministry, and other respondents and ordered them to pay their legal costs.
