Lottery Bill too vague - IPPR
In a newly released report by the Institute for Public Policy Research (IPPR) concerns were raised about the lack of detail in Namibia's Lottery Bill, saying this could lead to the proceeds of the State lottery being spent on undeserving causes.
“It is worrying that a handful of people will decide on spending all this money with so little guidance from the law as to what counts as a good cause,” the report says.
According to IPPR, the draft bill is very vague on how the money will be distributed.
“While the Harambee Prosperity Plan speaks of 'poverty eradication' projects, this wording is not in the bill.”
According to the draft bill, the funds from ticket sales, after all expenses are paid, will be paid into a trust fund which will distribute this to various causes.
The tourism minister and the lotteries board will determine how one portion of the funds are spent which will go towards grants for a “specific good cause”, while another portion goes to “any other matter approved by the minister” as long as he considers the development of Namibia in deciding where the money is spent.
According to the report, almost anything can be defined as falling under the “general development” of Namibia, and there is a risk that lottery money could go towards undeserving causes because of this vague definition.
The institute says that in some countries, critics have argued that money from the lottery simply replaces government spending on things government is supposed to do.
According to the report, in the Namibian context, the Harambee Prosperity Plan attempts to steer lottery winnings to productive uses, stating that “winning proceeds will be paid partly in cash and as a compulsory investment in housing and pension”.
“However, the bill before parliament does not contain this specifically. Instead it says that the board can decide “the manner in which prizes are claimed”.
The report argues that although it makes sense to leave the finer details to the board, it would also be helpful if the law stated that the board has to consider productive ways of paying out the money.
“It would be useful to have the law suggest an annuity option. In addition it is absolutely important that the law states that winners may remain anonymous and makes sure privacy protections are in place, so that winners can be protected from criminals wanting to take their money.”
Furthermore it was pointed out that lotteries essentially tax poor people to pay for the projects that they support.
It explained that a lottery can be seen as a special tax.
“It is important to point out that it is mostly poor people that pay for this special tax.”
According to IPPR taxes should be progressive meaning that richer individuals pay more than poorer individuals. “This way money is redistributed to make society more equal. Lotteries do the opposite.”
The report also said that the draft bill does not contain much detail about addressing problems about gambling.
Although it makes it illegal to sell tickets to minors, and it prohibits selling tickets to people on credit, the IPPR says that it would also be useful to establish funding to research gambling addiction in Namibia.
ELLANIE SMIT
“It is worrying that a handful of people will decide on spending all this money with so little guidance from the law as to what counts as a good cause,” the report says.
According to IPPR, the draft bill is very vague on how the money will be distributed.
“While the Harambee Prosperity Plan speaks of 'poverty eradication' projects, this wording is not in the bill.”
According to the draft bill, the funds from ticket sales, after all expenses are paid, will be paid into a trust fund which will distribute this to various causes.
The tourism minister and the lotteries board will determine how one portion of the funds are spent which will go towards grants for a “specific good cause”, while another portion goes to “any other matter approved by the minister” as long as he considers the development of Namibia in deciding where the money is spent.
According to the report, almost anything can be defined as falling under the “general development” of Namibia, and there is a risk that lottery money could go towards undeserving causes because of this vague definition.
The institute says that in some countries, critics have argued that money from the lottery simply replaces government spending on things government is supposed to do.
According to the report, in the Namibian context, the Harambee Prosperity Plan attempts to steer lottery winnings to productive uses, stating that “winning proceeds will be paid partly in cash and as a compulsory investment in housing and pension”.
“However, the bill before parliament does not contain this specifically. Instead it says that the board can decide “the manner in which prizes are claimed”.
The report argues that although it makes sense to leave the finer details to the board, it would also be helpful if the law stated that the board has to consider productive ways of paying out the money.
“It would be useful to have the law suggest an annuity option. In addition it is absolutely important that the law states that winners may remain anonymous and makes sure privacy protections are in place, so that winners can be protected from criminals wanting to take their money.”
Furthermore it was pointed out that lotteries essentially tax poor people to pay for the projects that they support.
It explained that a lottery can be seen as a special tax.
“It is important to point out that it is mostly poor people that pay for this special tax.”
According to IPPR taxes should be progressive meaning that richer individuals pay more than poorer individuals. “This way money is redistributed to make society more equal. Lotteries do the opposite.”
The report also said that the draft bill does not contain much detail about addressing problems about gambling.
Although it makes it illegal to sell tickets to minors, and it prohibits selling tickets to people on credit, the IPPR says that it would also be useful to establish funding to research gambling addiction in Namibia.
ELLANIE SMIT
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