Namibia businesses warn 5% levy could curb promotions
Industry representatives question whether retail promotions should face the same regulatory framework as gambling activities.
Key takeaways:
- The Lotteries Board of Namibia is proposing a 5 per cent levy on prizes offered in promotional competitions.
- Retail businesses argue that promotional competitions should be treated separately from gambling activities.
- The proposed processing fee has been reduced from N$2,000 to N$1,000 following stakeholder consultations.
- Competitions offering prizes worth less than N$5,000 would be exempt from the proposed processing fee but remain subject to the levy.
- Ohorongo Cement’s Carina Sowden warned that the levy could force the company to nearly stop promotional activities.
- The proposed levy and revised processing fee have not been confirmed as formally implemented under the revised arrangements.
Namibia.- The Lotteries Board of Namibia’s proposed 5 per cent levy on promotional competition prizes has drawn opposition from businesses at a recent public validation workshop in Windhoek. Industry representatives warned that the additional cost could make marketing campaigns financially unviable, raising questions about how the proposed rules would affect businesses using prize promotions to market their products and services.
Under the proposal, businesses would pay a levy of 5 per cent of the total value of prizes offered in each promotional competition and obtain a separate permit for every competition. “If your total prize value is N$100,000 (US$6,100) in prizes, you attract a levy of N$5,000 (US$305),” said Lotteries Board Manager for Licensing, Compliance and Inspection James Einbeck, according to Future Media News.
The proposed 5 per cent levy on promotional competition prizes was outlined in January 2026, following earlier Lotteries Board proposals.
Stakeholder consultations led to a reduction in the proposed processing fee from N$2,000 (US$122) to N$1,000 (US$61), while the proposed 5 per cent levy on prize value remained unchanged. Competitions offering prizes worth less than N$5,000 (US$305) would be exempt from the proposed processing fee but would still be subject to the proposed levy.
Carina Sowden, trade and marketing manager at Ohorongo Cement, said the levy could force the company to substantially reduce its promotional activities. “Five per cent on total value, definitely a problem. We will nearly stop,” Sowden said, referring to the potential impact on promotional activities.
She questioned whether retail promotions should be subject to the same regulatory framework as gambling activities, arguing that the two should be treated separately. Sowden also raised concerns about communication between the Lotteries Board and registered stakeholders, saying she had not received direct correspondence about previous consultations and had learnt of an earlier session through the media.
Rudie Putter, general manager of Country Club Resort and Casino, warned that regulatory requirements could expose businesses to significant compliance costs and penalties if the scope of the rules remained unclear.
Putter highlighted the cumulative financial burden facing regulated gambling businesses, including value-added tax, gaming levies, promotional costs and licensing requirements. He argued that additional costs could weaken the competitiveness of legal operators against unregulated online gambling platforms, which he said did not face the same compliance obligations.
The proposed framework covers promotional competitions involving prizes awarded by lot or chance to promote businesses or the sale of goods and services. Businesses would need approval before conducting each competition, with permits valid for the duration of the specific promotion. The requirements follow earlier nationwide consultations on Namibia’s gambling regulation reforms.
The proposals form part of Namibia’s wider efforts to strengthen oversight of promotional competitions and the gambling and lottery sector. The broader reforms have also included proposed monitoring and maintenance fees for gambling operators, separate from the promotional competition levy. A Lotteries Board notice issued in October 2025 specified a 5 per cent levy on the total cost of prizes and advertising, alongside a N$2,000 processing fee. However, the Board subsequently cancelled the notice while completing internal processes.
At the October 2026 consultation, the proposed levy on prize value remained at 5 per cent, while the proposed processing fee was reduced following stakeholder input. The formal status of the revised arrangements remains unclear, and the available information does not establish that the revised fee and levy framework has been formally implemented in full.
Frequently asked questions (FAQs)
- What is Namibia’s proposed promotional competition levy? The Lotteries Board of Namibia is proposing a 5 per cent levy on the value of prizes offered in promotional competitions. The proposal was discussed at a public validation workshop in Windhoek in October 2026.
- What is the proposed processing fee for promotional competitions in Namibia? The proposed processing fee has been reduced from N$2,000 to N$1,000 per competition following stakeholder input. Formal implementation of the revised fee has not been confirmed.
- Are promotional competitions with prizes below N$5,000 exempt from the levy? No. Under the proposal, competitions offering prizes worth less than N$5,000 would be exempt from the processing fee but would remain subject to the proposed 5 per cent levy.
