Shifeta ruffles raffles
While saying it was time to “give Caesar what Caesar is due”, the tourism minister has highlighted that many benevolent lotteries and promotional competitions have been established in the country unlawfully.
Minors will no longer be allowed to sell school raffle tickets, according to the new Lotteries Act of 2017, for which regulations are being finalised.
Under the new Act all promotional competitions that are held in Namibia will have to contribute to the State Lotteries Trust Fund.
Hefty fines of up to N$4 million or prison terms of 20 years are included in the new legislation.
Furthermore, a separate parastatal will be established to control and manage the lotteries sector, as it will be separated from the tourism ministry with the implementation of the new law.
This was revealed during a public consultative workshop in Windhoek on the draft regulations of the Lotteries Act of 2017 and the Gaming and Entertainment Control Act 2018.
The focus yesterday was on the Lotteries Act, while the Gaming and Entertainment Control Act will be discussed today.
Tourism minister Pohamba Shifeta said yesterday it is time to “give Caesar what Caesar is due”.
He said although the lotteries sector never officially took off in Namibia, many benevolent lotteries and promotional competitions have been established unlawfully.
“It must further be noted that these lotteries have been taking money from members of society and in most cases from the poorest,” said Shifeta.
He said the government believes that the proceeds of such lotteries should first and foremost contribute to social welfare by supporting charities, sport, arts and culture, science and youth empowerment.
“The new law will not allow minors to be involved in lotteries anyway. It will be illegal for schools to send a child to sell raffle tickets. That is a lottery. Today a child can go with a paper to beg for money. This will not be allowed anymore.”
Shifeta said the purpose of the Lotteries Board is to manage a state lottery and sports pool or licensing someone to do it, and to establish the State Lottery Trust Fund to provide for the authorisation of other lotteries and promotional competitions.
The board will also authorise, supervise and control benevolent lotteries.
Tourism executive director Teofilus Nghitila said the lotteries sector would receive a completely new legal framework.
“All lotteries, benevolent or otherwise, will now be controlled and regulated. There will be only one state lottery and it is the intention of the state to protect that state lottery to ensure that it generates much-needed revenue for social welfare.”
According to him restrictions will be placed on all other lotteries, including promotional competitions and private lotteries, and offences will be dealt with severely.
“The aim is not to take citizens to prison, but to keep them out of prison through enforcing compliance with the law.”
Christmas is over
Giving an overview of the State Lotteries Act, the director of tourism and gaming, Sem Shikongo, explained that the days of attracting the public with huge prizes in promotional competitions were also numbered, as the maximum value of prizes in a calendar year may not exceed N$1 million.
This was specifically mentioned with regard to MTC's new 888 SMS competition, in which participants stand a chance to win part of N$1.3 million, which exceeds the new limit.
“Christmas is over,” said Shikongo.
He said a lottery in terms of the new legislation includes any games, schemes, arrangements, systems, plans, promotional competitions or devices for distributing prizes by lot or chance.
According to the new law, a person who participates in or conducts, facilitates, promotes or derives any benefit from a lottery, promotional competition or sports pool, unless authorised, is liable to incur a N$4 million fine or serve 20 years in prison, or both.
A person that forges or in any other fraudulent way changes any ticket or any other document or thing pertaining to any lottery or promotional competition is liable to a N$500 000 fine, five years in prison, or both.
With regard to minors, the Act says that a person who sells any ticket for participation in the state lottery, sports pool or any benevolent lottery to a minor, who is known to be underage, is liable to be fined N$400 000, sentenced to four years in prison, or both.
“It is an offence to invite, cause or permit a minor to participate in a lottery,” said Shikongo.
A person who conducts or attempts to conduct a lottery for personal gain or for the benefit of any other individual will be fined N$200 000, or serve ten years in prison, or both.
According to Shikongo the Lotteries Act will not only establish the Lotteries Board as a new SOE, but will also appoint inspectors with powers to regulate the industry.
Furthermore, the Act spells out what lotteries are not subjected to licensing requirements. With the implementation of the Act the conducting of lotteries will be lawful, as there was previously no protection or involvement from the state regarding the lotteries sector.
A person involved in a private lottery could previously not go to court in this regard as the activity was unlawful in Namibia.
Under the Act, a lottery conducted for members of a benevolent society, such as a bazaar, sale or dance, are exempt.
With regard to lotteries conducted for members of a social or sporting club, they have to get authorisation in writing from the governing body.
Benevolent societies must be registered with the Lotteries Board and are obliged to pay fees and levies, as well as submit returns after they have conducted a lottery. Financial audits must also be submitted. Examples of these are SPCA fundraisers, Winna Mariba, raffles and the Biltongfees.
ELLANIE SMIT
Under the new Act all promotional competitions that are held in Namibia will have to contribute to the State Lotteries Trust Fund.
Hefty fines of up to N$4 million or prison terms of 20 years are included in the new legislation.
Furthermore, a separate parastatal will be established to control and manage the lotteries sector, as it will be separated from the tourism ministry with the implementation of the new law.
This was revealed during a public consultative workshop in Windhoek on the draft regulations of the Lotteries Act of 2017 and the Gaming and Entertainment Control Act 2018.
The focus yesterday was on the Lotteries Act, while the Gaming and Entertainment Control Act will be discussed today.
Tourism minister Pohamba Shifeta said yesterday it is time to “give Caesar what Caesar is due”.
He said although the lotteries sector never officially took off in Namibia, many benevolent lotteries and promotional competitions have been established unlawfully.
“It must further be noted that these lotteries have been taking money from members of society and in most cases from the poorest,” said Shifeta.
He said the government believes that the proceeds of such lotteries should first and foremost contribute to social welfare by supporting charities, sport, arts and culture, science and youth empowerment.
“The new law will not allow minors to be involved in lotteries anyway. It will be illegal for schools to send a child to sell raffle tickets. That is a lottery. Today a child can go with a paper to beg for money. This will not be allowed anymore.”
Shifeta said the purpose of the Lotteries Board is to manage a state lottery and sports pool or licensing someone to do it, and to establish the State Lottery Trust Fund to provide for the authorisation of other lotteries and promotional competitions.
The board will also authorise, supervise and control benevolent lotteries.
Tourism executive director Teofilus Nghitila said the lotteries sector would receive a completely new legal framework.
“All lotteries, benevolent or otherwise, will now be controlled and regulated. There will be only one state lottery and it is the intention of the state to protect that state lottery to ensure that it generates much-needed revenue for social welfare.”
According to him restrictions will be placed on all other lotteries, including promotional competitions and private lotteries, and offences will be dealt with severely.
“The aim is not to take citizens to prison, but to keep them out of prison through enforcing compliance with the law.”
Christmas is over
Giving an overview of the State Lotteries Act, the director of tourism and gaming, Sem Shikongo, explained that the days of attracting the public with huge prizes in promotional competitions were also numbered, as the maximum value of prizes in a calendar year may not exceed N$1 million.
This was specifically mentioned with regard to MTC's new 888 SMS competition, in which participants stand a chance to win part of N$1.3 million, which exceeds the new limit.
“Christmas is over,” said Shikongo.
He said a lottery in terms of the new legislation includes any games, schemes, arrangements, systems, plans, promotional competitions or devices for distributing prizes by lot or chance.
According to the new law, a person who participates in or conducts, facilitates, promotes or derives any benefit from a lottery, promotional competition or sports pool, unless authorised, is liable to incur a N$4 million fine or serve 20 years in prison, or both.
A person that forges or in any other fraudulent way changes any ticket or any other document or thing pertaining to any lottery or promotional competition is liable to a N$500 000 fine, five years in prison, or both.
With regard to minors, the Act says that a person who sells any ticket for participation in the state lottery, sports pool or any benevolent lottery to a minor, who is known to be underage, is liable to be fined N$400 000, sentenced to four years in prison, or both.
“It is an offence to invite, cause or permit a minor to participate in a lottery,” said Shikongo.
A person who conducts or attempts to conduct a lottery for personal gain or for the benefit of any other individual will be fined N$200 000, or serve ten years in prison, or both.
According to Shikongo the Lotteries Act will not only establish the Lotteries Board as a new SOE, but will also appoint inspectors with powers to regulate the industry.
Furthermore, the Act spells out what lotteries are not subjected to licensing requirements. With the implementation of the Act the conducting of lotteries will be lawful, as there was previously no protection or involvement from the state regarding the lotteries sector.
A person involved in a private lottery could previously not go to court in this regard as the activity was unlawful in Namibia.
Under the Act, a lottery conducted for members of a benevolent society, such as a bazaar, sale or dance, are exempt.
With regard to lotteries conducted for members of a social or sporting club, they have to get authorisation in writing from the governing body.
Benevolent societies must be registered with the Lotteries Board and are obliged to pay fees and levies, as well as submit returns after they have conducted a lottery. Financial audits must also be submitted. Examples of these are SPCA fundraisers, Winna Mariba, raffles and the Biltongfees.
ELLANIE SMIT
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