High Court orders GRA to process application for Superbet Betting Shop Licences

Oct 01, 2019 News

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By Feona Morrison

Noting that the Guyana Revenue Authority (GRA) and the Guyana Gaming Authority (GGA) received and acted upon poor legal advice in demanding that Superbet obtain a Certificate of Good Standing before it can be issued with a Betting Shop Licence, Justice Jo-Ann Barlow yesterday ordered the organisations to process Superbet’s applications for 2018 and 2019.
In a ruling delivered yesterday, Justice Barlow also granted a Writ of Certiorari, as requested by Superbet, directed to GRA and its Commissioner General quashing a decision made by them during January 2018, requiring Superbet to obtain a Certificate of Good Standing as a condition precedent to the issuance of a Betting Shop Licence under the provisions of the Tax Act, Chapter 80:01, on the grounds that the said decision is ultra vires, capricious, arbitrary, unlawful, illegal, influenced by irrelevant considerations, null, void and of no effect.
The Judge also granted another Writ of Certiorari directed to the GGA and its Chief Executive Officer quashing their decision to impose a requirement of a Good Standing Certificate, as a condition precedent to the Applicant obtaining a Betting Shop Licence under the provisions of the Tax Act, Chapter 80:01, on the grounds that the said decision is ultra vires, arbitrary, unlawful, illegal, influenced by irrelevant considerations, null, void and of no effect.
Justice Barlow, in her ruling, on the Tax Act, said that the legislation under which Superbet is licensed to carry out business does not make provisions expressly or impliedly, for the company to obtain a Certificate of Good Standing as a pre-condition to being issued with betting shop licence.
It was further noted by the court that the Anti-Money Laundering and the Countering of Financial Terrorism AML/CFT Act, also makes no provisions for Superbet to obtain a Certificate of Good Standing as a pre-condition to being issued with betting shop licence.
Therefore, the court held that both the GRA and the Gaming Authority acted unlawfully and illegal when they demanded Superbet to obtain a Certificate of Good Standing as a pre-condition to being issued with a Betting Shop Licence as it is requirement outside of the law. GRA and its Commissioner General were each ordered to pay $100,000 in court costs to Superbet, while GGA and its Chief Executive Officer were each ordered to pay $150,000 in court costs to the company.
During the course of the proceedings, an application filed by the Attorney General Basil Williams, to join the matter was refused.
In light of yesterday’s ruling, Nandlall issued these comments: “As a result of this ruling, Superbet should now be issued with its licence for the years 2018 and 2019 by GRA, especially since its Affidavit before the Court; GRA intimated that Superbet has satisfied all the legal requirements to be issued with this licence.
This ruling also would constitute conclusive basis or the dismissal or discontinue of all pending criminal charges against the agents of the Superbet in the Magistrate’s Court.”
Shrikant Kisoensingh, General Manager of Guiana Holding Inc., the company which operates Superbet said that it started operations here in 2012. Over the past seven years, he said that Superbet has established 170 locations countrywide, across eight administrative regions, run and managed by agents all of whom employ several persons at their individual operations.
At present, he said that 70 staffers are employed on a full-time basis at its operations is headquartered at 72 Barrack Street, Kingston, Georgetown, Guyana.
From the commencement of its operation, Kisoensingh submitted that his operations are above board in keeping with all the necessary tax and gaming laws. For the years 2012 to 2015, he contended that the relevant fee was $2,000,000 annually; for the years 2016 and 2017, the annual fee increased to $3,000,000.
According to Kisoensingh’s affidavit, GRA belatedly added a Certificate of Good Standing as a requirement for granting the licence. Kisoensingh further noted threats by the GGA to suspend the operations due to the lack of a Certificate of Good Standing is unfounded and without legal merit.
He said that the company’s operations did not fall under the purview and ambit of the Gambling Prevention Act, and therefore GGA did not have jurisdiction and authority to direct Superbet to suspend their operations. Additionally, in the court document, Superbet noted that GGA required that the company undergoes an audit at the cost to some US$100,000— a bill which they should foot.
However, according to the court documents, the Gaming Authority will select the company to conduct the audit.
The audit company, Spectrum Gaming Group, is in conjunction with Compliance Aid BSA Anti -Money Laundering (AML) Services LLC– a Miami-based Anti-Money Laundering & Counter-Terrorism Financing Education, and Resources & Advisory Services firm.
Superbet was told that an AML/CFT audit was required for them to be issued a Certificate of Good Standing, the documents noted.

 

 

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