Discussions regarding amendments to legislation on lotteries and gambling are ongoing in Namibia. In October, the country’s Ministry of Environment, Forestry and Tourism organised several workshops. They focused on the proposed changes, following earlier consultations with industry representatives held this spring.
Implementing the reforms may face challenges. According to Indileni Daniel, the MEFT’s Minister, the GBN, which will oversee the updated system, is not yet fully operational. In particular, the gambling regulator has not yet completed its staff recruitment process.
Unified Monitoring Platform and New Levies
The proposed amendments include additional fees for operators and enhanced oversight of their activities through a CEMS, a centralised monitoring e-system. It is designed to collect and transmit transaction data from legal gaming businesses.
Meanwhile, the GBN is working to implement an automated gambling licensing platform. The deadline for submitting bids for both projects has been extended to November 5th.
In mid-October, the regulator held a consultative workshop for prospective bookmaking and totalizator permit applicants. Participants discussed certification requirements and the tech compliance standards for betting platforms. Other initiatives include revising procedures for registering operators and issuing approvals, including for e-lotteries.
In summary, the proposed changes encompass several key areas:
- Licensing — reviewing the policies for granting permits and listing market stakeholders in a CEMS.
- Digital segment — introducing regulatory requirements and documentation for electronic entertainment.
- Monitoring — implementing a centralised system for recording transactions at legally operating projects.
- Technical oversight — automating licence issuance and verifying platform compliance with established rules.
- Financial obligations — implementing additional levies for gaming businesses.
Johannes Erastus, the GBN’s Acting CEO, said the proposals were developed based on research and international experience. According to him, the evolution of the regulatory framework should be grounded in cooperation with foreign authorities and the adoption of the industry’s best practices.
National Fee Assessment: Current Rules
While new oversight mechanisms are under discussion, the 2021 provisions remain in effect for certain market participants. The monthly amount payable depends on the licence category.
Offline casinos, bars, small drinking venues, and other gambling-offering establishments are required to remit 10% of their net income. Meanwhile, totalizator organisers must pay 10% of gross takings.
The country follows a unique calculation method for some financial metrics. For instance, net income is quantified by subtracting player payouts from total income. Revenues from selling food, beverages, and other non-gaming services are excluded from the tax base.
Ben Shikongo, the GBN’s Chairperson, has urged the government to expedite the official publication of the new fee structure. In his view, this is especially important for categories where tariff rates were previously set at unjustifiably high levels.
Staffing Shortages Hindering Operations
A primary obstacle to reform is the regulator’s personnel gap. Addressing Parliament, Ms Daniel said the GBN is not yet in its full capacity because the recruitment process remains incomplete.
This staffing deficit impacts several key areas of the Board’s mandate:
- collecting levies;
- informing consumers;
- monitoring online platforms;
- implementing rehabilitation programs;
- issuing gaming permits and supervising licensees.
The Minister emphasised that effective oversight of digital gambling remains a complex challenge for many nations. The Namibian authority also does not review applications for activities prohibited under current legislation.
Local communication-technology bookmaker or totalizator wagers and online gaming are regulated as distinct categories. Consequently, distinguishing between these formats is essential when developing new requirements for market participants.
Plans to Strengthen Tax Control in Namibia
Alongside the revision of gambling legislation, the authorities are elevating supervision of fiscal compliance. In March, the NamRA, a national levy collecting body, signed an agreement with the GBN. The deal provides for the exchange of industry information.
Sam Shivute, the Agency’s Founding Commissioner, said the institution intends to:
- receive details on gambling stakeholders and payments to players;
- identify cases of violation of established requirements;
- compare the data collected with tax reporting;
- take action to charge unpaid fees.
Replenishing the state budget also remains an urgent task. In the local Ministry of Finance’s report for the 2023/24 FY, the target annual gaming fees were set at NAD 5 million (about USD 300,500). Nevertheless, actual revenues against that line are not indicated in the document.
At the same time, Ms Daniel told parliament that NAD 17 million (around USD 1.02 million) had already been raised for the Gambling Trust Fund. These amounts relate to government revenues and do not reflect the country’s industry turnover. The collected assets aim to support regulatory projects, education, responsible-play campaigns, and segment development.
Reforming the Local Gaming Market: Prospects
After local consultations are complete, all proposals received are planned to be consolidated in Windhoek. The initiatives will then move to the next stage of review.
The further approval process will depend on the nature of the changes. Introducing new regulations will require publication in the official government gazette. Meanwhile, amending the basic law must follow the appropriate parliamentary procedure.
The country’s authorities intend to change the current system significantly. Among the main directions are:
- expansion of digital monitoring;
- revision of the rules for the gambling sector;
- increasing the transparency of financial transactions.
To implement them successfully, it is important not only to pass new laws, but also to staff the GBN with the personnel needed to carry out these tasks. Until then, the overhaul is just an initial set of recommendations rather than a viable model.
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