Namibia’s Lotteries Board proposes 5% levy on promotional competition prizes
Namibia’s regulator is proposing a new levy on promotional competition prizes and a N$2,000 (€104) processing fee for organisers.
Namibia.- The Lotteries Board of Namibia is proposing a 5 per cent levy on the value of prizes offered in promotional competitions. The proposal would apply to all competitions run in the country, with organisers also required to pay a N$2,000 (€104) processing fee when applying for approval to operate such competitions.
The measures form part of a broader “regulatory overhaul aimed at strengthening oversight of promotional competitions and improving compliance” across Namibia’s gaming and lottery sector, according to the Brief.
The proposed levy and processing fee would be formalised through a gazetting process under the Lotteries Act and the Lotteries Regulations.
Lotteries Board Chairperson Wycliff Shililifa said the reforms are intended to improve monitoring and accountability in the promotional competition market, which regulators say has expanded rapidly in recent years with limited oversight.
The regulator believes additional oversight is needed for a segment of the gaming sector that includes retail prize promotions and marketing competitions run by companies.
Promotional competitions are commonly used by businesses as marketing tools, offering prizes such as cash, vehicles or consumer goods to attract customers. Regulators in several jurisdictions have increasingly moved to regulate these activities more closely when they resemble lottery-style draws.
