Namibia Court Enforces Levy Payments for Licensed Gambling Operators
The High Court of Namibia has ruled that licensed gambling houses are legally obligated to pay a 10% levy on their profits to the national gambling board, regardless of the continued operation of unlicensed competitors. The judgment, delivered by Judge Nate Ndauendapo, rejected an attempt by the Gambling House Association of Namibia to delay these payments.
Legal Obligations Upheld
Judge Ndauendapo rejected the association’s request to delay levy payments. The group had argued that payments should be suspended until the government shuts down or legalizes all illegal gambling venues. However, the judge ruled that the Gaming and Entertainment Control Act of 2018 overrides the 2020 court settlement.
According to the 2018 law, licensed gambling houses must pay 10% of their gambling profits to the gambling board. Ndauendapo stressed that operators can only avoid this obligation by applying for an exemption from the minister of environment and tourism. The association and its members never submitted such a request.
Background to the Dispute
The Gambling House Association had based its challenge on a 2020 High Court settlement. That agreement stated no levies would be imposed until illegal gambling houses were either legalized or closed. But Ndauendapo clarified that the 2018 law replaced the 1994 Casinos and Gambling Houses Act. This change invalidated the earlier settlement.
He also explained that enforcing the old settlement under the new law would let the judiciary override legislative authority. That, he emphasized, would conflict with the Namibian Constitution.
The Illegal Gambling Problem
The association claims that illegal gambling machines outnumber licensed ones by nearly ten to one. In a sworn affidavit, association secretary Jaco Horn said their members operate about 580 machines worth N$70 million. Despite this, he noted, they face falling revenues due to competition from unregulated operators.
Horn also claimed the government has failed to shut down a single illegal gambling house, despite the promises made in 2020. While Judge Ndauendapo acknowledged the damaging effect of illegal gambling, he said the law still requires licensed operators to meet their obligations. The presence of illegal competitors does not exempt them from following the rules.
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