State wants share in lottery luck
Government has set its sights on implementing a state lottery as one of the solutions to the nation's funding woes.
Last week tourism minister Pohamba Shifeta tabled the Lottery Bill in the National Assembly, saying the proposed national lottery would contribute to the development activities of the country in areas such as poverty alleviation, education and sport.
This essentially means that the government will receive a certain percentage of money collected from lotteries and gaming.
During the State of the Nation Address last year, President Hage Geingob stated that the government was investigating the feasibility of establishing a state lottery as part of the Harambee Prosperity Plan.
According to the authorities, a state lottery would not only contribute to poverty alleviation efforts, but would also supplement state revenue streams.
The bill revises the existing Lotteries Act of 2002, which was mainly established to regulate and control lottery activities in the country.
If parliament passes the proposed legislation, a Lotteries Board will be established to supervise and control benevolent lotteries in the country.
“The government of Namibia acknowledges gambling as a 'social reality' and seeks to regulate, monitor and control the lottery industry in the interest of protecting society, but also to ensure that the profits from legal gambling through lotteries is used to support good causes,” said Shifeta. “Lotteries run for or by the governments are used as a source of funds to support public programmes such as infrastructure development, public safety, public health and education.”
Shifeta was optimistic that a state lottery could be an effective and pro-poor source of revenue. In many countries, state lotteries are used to provide extra funding for various state programmes without increasing the tax burden.
“The Harambee Prosperity Plan directs that revenue collected through the state lottery will, like the solidary wealth tax, be directed to poverty eradication activities under the supervision of the Special Tax Committee. It states further that winning proceeds will be paid directly in cash, as a compulsory investment in housing and pension, and a cash payment.”
The proceeds of a state lottery would help fund social programmes as well as state revenue to support national development programmes.
The proposed legislation makes provision for the Lotteries Board to run the state lottery on its own or through an operator who would be granted a licence. “In essence the Lotteries Board has to assure that the state lottery is run with all due propriety, that the interests of participants in the state lottery are protected, that the long-term sustainability of the state lottery is safeguarded, and subject to the above, the revenues allocated to good causes are as high as possible,” said Shifeta.
According to Shifeta, the bill has taken into consideration possible challenges that may arise from lottery activities, such as the potential involvement of minors.
“Sending a minor any document which advertises the lottery or bringing to the attention of a minor information about lotteries with a view to encourage the minor to participate is an offence and punishable,” he said.
The legislation will also protect members of the public against schemes that can defraud them through fake competitions.
The security and safety risks associated with publicly announcing lottery winners have also been identified as a challenge.
Last week tourism minister Pohamba Shifeta tabled the Lottery Bill in the National Assembly, saying the proposed national lottery would contribute to the development activities of the country in areas such as poverty alleviation, education and sport.
This essentially means that the government will receive a certain percentage of money collected from lotteries and gaming.
During the State of the Nation Address last year, President Hage Geingob stated that the government was investigating the feasibility of establishing a state lottery as part of the Harambee Prosperity Plan.
According to the authorities, a state lottery would not only contribute to poverty alleviation efforts, but would also supplement state revenue streams.
The bill revises the existing Lotteries Act of 2002, which was mainly established to regulate and control lottery activities in the country.
If parliament passes the proposed legislation, a Lotteries Board will be established to supervise and control benevolent lotteries in the country.
“The government of Namibia acknowledges gambling as a 'social reality' and seeks to regulate, monitor and control the lottery industry in the interest of protecting society, but also to ensure that the profits from legal gambling through lotteries is used to support good causes,” said Shifeta. “Lotteries run for or by the governments are used as a source of funds to support public programmes such as infrastructure development, public safety, public health and education.”
Shifeta was optimistic that a state lottery could be an effective and pro-poor source of revenue. In many countries, state lotteries are used to provide extra funding for various state programmes without increasing the tax burden.
“The Harambee Prosperity Plan directs that revenue collected through the state lottery will, like the solidary wealth tax, be directed to poverty eradication activities under the supervision of the Special Tax Committee. It states further that winning proceeds will be paid directly in cash, as a compulsory investment in housing and pension, and a cash payment.”
The proceeds of a state lottery would help fund social programmes as well as state revenue to support national development programmes.
The proposed legislation makes provision for the Lotteries Board to run the state lottery on its own or through an operator who would be granted a licence. “In essence the Lotteries Board has to assure that the state lottery is run with all due propriety, that the interests of participants in the state lottery are protected, that the long-term sustainability of the state lottery is safeguarded, and subject to the above, the revenues allocated to good causes are as high as possible,” said Shifeta.
According to Shifeta, the bill has taken into consideration possible challenges that may arise from lottery activities, such as the potential involvement of minors.
“Sending a minor any document which advertises the lottery or bringing to the attention of a minor information about lotteries with a view to encourage the minor to participate is an offence and punishable,” he said.
The legislation will also protect members of the public against schemes that can defraud them through fake competitions.
The security and safety risks associated with publicly announcing lottery winners have also been identified as a challenge.
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