Gambling sector pushes back on new changes on regulations of Gaming Act

By: Hertha Ekandjo

Industry players in gambling, betting, and related activities have raised concerns over proposed changes to the regulations of the Gaming and Entertainment Control Act.

They warned that the proposed new amendments could now equal 16% levy on gross income, on their profits payable to the government, could place significant pressure on their businesses.

A local betting business owner, who preferred to remain anonymous, said that with the combined taxes and levies, total deductions could exceed 30 percent of gross income, potentially affecting both profitability and long-term growth.

The business owners’ comments come after the Ministry of Environment, Forestry, and Tourism begins public consultations on amendments to the Gaming and Entertainment Control Act, 2018, and the regulations of the Lotteries Act, 2017 (Act No. 13 of 2017).

The business owners said proposed fee adjustments are favourable, particularly reductions in certain licence categories; others have increased sharply, raising questions about affordability and sustainability within the sector.

One of the most notable changes is the rise in application fees, with bookmaker licence costs reportedly increasing fivefold, from N$10 000 to N$50 000, while totaliser licences have surged even higher. Industry players argue that these increases may disproportionately affect smaller operators, given that licensing is required per site.

According to industry representatives, operators would be required to cover installation costs for monitoring devices, in addition to ongoing charges, including a proposed 1% maintenance fee on gross income and a further 5% monitoring fee.

However, the Gambling Board of Namibia has defended the proposed amendments, saying they are aimed at strengthening regulation while responding to industry needs.

Board member Celesta Kandanga-Nangolo said the changes are intended to ensure the Board fulfils its mandate of effectively regulating the sector.

Despite these assurances, operators warn that the cumulative cost of new and existing charges could significantly increase the financial burden on the sector. When combined with taxes and levies, total deductions could exceed 30% of gross income, potentially affecting profitability and long-term growth. 

Industry stakeholders caution that excessive costs may have unintended consequences, including reduced investment, limited expansion, and the possible rise of unregulated gambling markets.