ISAAC LENAOLA: Moral and ethical issues arise in the lotteries, betting and gaming business. FILE PHOTO | NMG
Summary
- Betting cash will remain under national government for at least two more months before City Hall effectively takes charge.
- The extended period will allow gazettement of functions of both levels of governments in matters to do with gaming licenses.
- Previously, betting, lotteries, gaming and other forms of gambling business at the national as well as local levels, were considered to be under the Betting Control and Gaming Act.
- However, after devolution, the Nairobi county assembly in 2014 enacted legislation requiring all gaming, lottery and betting operations to pay taxes and for permits.
The control of billions of shillings in
Nairobi’s betting and gaming industry will remain under national
government for at least two more months before City Hall effectively
takes charge.
This follows a High Court ruling issued
by (now Supreme Court judge) Isaac Lenaola on Thursday that extended the
suspension of the operations of the Nairobi City County Betting,
Lotteries and Gaming Act 2014 for a further 60 days.
According
to the judge, the extended period will allow gazettement of functions
of both levels of governments in matters to do with gaming licenses.
“Moral
and ethical issues arise in the lotteries, betting and gaming business
hence there is a clear need for the two levels of government to
coordinate their oversight roles to ensure that loopholes created in
the licensing processes are quickly sealed while each is staying within
its demarcated lane,” ruled Mr Justice Lenaola.
The
directive follows a November 13, 2015 interim ruling in which the judge
referred the disputing parties to the Transition Authority (TA) saying
there were no clear roles at the time between the two levels of
government.
He had then instructed the TA to resolve
the dispute within 90 days and forward a report to the Sectoral
Intergovernmental Forum and casino operators.
Previously,
betting, lotteries, gaming and other forms of gambling business at the
national as well as local levels, were considered to be under the
Betting Control and Gaming Act.
However, after devolution, the Nairobi county assembly
in 2014 enacted legislation requiring all gaming, lottery and betting
operations to pay taxes and for permits.
It is then
that the Association of Gaming Operators, Africa Rafiki and Mr Wycliffe
Indalu moved to court to stop the demand for taxes under the new Act.
They
sued the Nairobi county government and its Assembly as well as the
Attorney General while the Authority was listed as an interested party
in the case.
Following the verdict issued two years
ago, various stakeholders including the interior ministry, the betting
Control and Licensing Board, the Commission on Revenue Allocation, the
Kenya Revenue Authority among others, held a meeting on January 2016.
In
the meeting, resolutions were reached on functions of both levels of
government which were later tabled before court and the judge ruled that
they needed to be adopted as drafted.
In the draft,
the national government is mainly tasked with formulating policies,
legislation standards and norms, developing them while the counties are
to implement, conduct periodic evaluations and enforce compliance.
The national government is also tasked with vetting security checks and due diligence.
There
are also functions such as licensing of lotteries at different levels
and handling of complaints which are to be handled by both governments.
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