Pools Betting (control and Taxation) Law

POOLS BETTING (CONTROL AND TAXATION) LAW

1. Citation. This Law may be cited as the Pools Betting (Control and Taxation) Law.

2. Interpretation. In this Law unless the context otherwise requires- "advertise" with its grammatical variations and cognate expressions includes advertising to an individual; "appropriate authority" means a member of the Government of the State for the time being charged with responsibility for financial policy; "carry on" with its grammatical variations and cognate expressions in relation to a pools betting business includes the receiving or negotiating by a person inside or outside the State of stakes or bets placed or to be placed by persons within the State; "coupon" means any document by means of which a staker makes a bet for the purpose of his participation in a pools betting; "dividend" means the prize won by a staker in a pools betting; "exhibit" with its grammatical variations and cognate expressions includes exhibiting to an individual; "licence" means a licence issued in accordance with section 3 of this Law to any person for the purpose of carrying on a pools betting business in the State; "licensed proprietor" means any business to whom a licence is issued, and includes where the context so admits any agent of such person; "pools betting business" means any business involving the receiving or negotiating of stakes or bets placed or to be placed by way of pools betting and includes- (a) any business involving the receiving or negotiating of such stakes or bets on behalf of any person whether in any case the person on whose behalf the stake or bet is received is within or outside the state; and (b) the business "betting at fixed odds" where as a part of or incidental to (pools betting each of the persons placing a stake or bet knows, at the time the stake or bet is placed, the amount likely to be won, and "pools betting" shall be construed accordingly; "prescribed" means prescribed by any regulation made under this Law; "stake" means the amount placed on a bet by any person participating in a pools betting; and "staker" shall be construed accordingly; "State" means Delta State of Nigeria; "tax" means the pools betting tax imposed by this Law.

3. Power of appropriate authority to issue, renew and revoke licences to carry on pools betting businesses and penalties for prescribed or special conditions in licences. (1) The appropriate authority may upon application issue a licence to any person for the carrying on of a pools betting business in the State. (2) Licences shall be in such form and shall be subject to such conditions as may be prescribed and to such special conditions as the appropriate authority may, in particular case, impose. (3) The appropriate authority may at any time grant to any person exemption from any prescribed or special condition and may add to, alter or cancel any special condition in respect of any licence. (4) The appropriate authority may upon application renew any licence at such interval from the first issuance or the last renewal thereof as may be prescribed and may at any time revoke the licence. (5) The issuance, renewal, refusal to issue or renew and the revocation of the licence and the addition to, alteration or cancellation of, or exemption from any prescribed or special condition shall be at the discretion of the appropriate authority who shall not be required to assign any reason for such issuance, renewal, refusal, revocation, addition, alteration, cancellation or exemption. (6) Any licensed proprietor who fails to comply with any prescribed or special condition subject to which the licence has been issued shall be guilty of an offence and shall be liable on conviction to a fine of two thousand naira or imprisonment for one year or to both such fine and imprisonment.

4. Prohibition of pools betting business without licence and false representation as to possession of licence. (1) No person shall under any form of pretence or description whatsoever, or by means of any device contrivance, or by any other means whatsoever, carry on in the State a pools betting business without a licence and no person carrying on such a business shall distribute, print or publish, or cause to be distributed, printed or published in the State any papers, or do or cause to be done in the State any other thing for the purpose of or incidental to that business. (2) Any person who contravenes any of the provisions of subsection (1) of this section shall be guilty of an offence and shall be liable on conviction to a fine of five thousand naira or imprisonment for two years or to both such fine and imprisonment. (3) Any person who, not having been issued with a licence under this Law, falsely represents in any advertisement, coupon, document or in any other manner or form that he has such a licence, shall be guilty of an offence and shall be liable on conviction to a fine of five thousand naira or imprisonment for two years or to both such fine and imprisonment.

5. Publication by appropriate authority of particulars of licensed proprietors. The appropriate authority may, at such intervals as it may determine, cause to be published in the State Gazette and in such other manner as it may deem fit, such particulars as may be prescribed in respect of all licensed proprietors known to be carrying on business for the time being.

6. Control of advertisement in relation to licensed pools betting business and prohibition of advertisement in relation to unlicensed one. (1) Every licensed proprietor shall cause to be included in every advertisement within the State of his business and in every coupon and every other document addressed to stakers or intended stakers within the State a statement to the effect that a licence has been issued to him under this Law, and any licensed proprietor who fails to comply with the provisions of this subsection shall be guilty of an offence and shall be liable on conviction to a fine of five thousand naira or imprisonment for six months or to both such fine and imprisonment. (2) No advertisement of a pools betting business shall be published or otherwise exhibited within the State unless a licence has been issued to the person carrying on such business, and any person who publishes or otherwise exhibits such an advertisement or any person carrying on any pools betting business so advertised shall be liable on conviction to a fine of five thousand naira or imprisonment for two years or to both such fine and imprisonment.

7. Prohibition of stakes in any pools betting carried on by unlicensed person. (1) No person within the State either on behalf of himself or any other person shall place or cause to be placed within the State or elsewhere any stakes or bets in any pools letting conducted by any person whether within or outside the State who to the knowledge of such person as aforementioned has not been issued with a licence under this Law. (2) Any person who contravenes any of the provisions of subsection (1) of this section shall be guilty of an offence and shall be liable on conviction to a fine of five hundred naira or imprisonment for three months or to both such fine and imprisonment.

8. Power to issue search warrants. Any magistrate or justice of the peace who is satisfied by information on oath that there is reasonable ground to suspect that any building or place is being used for the purpose of or in connection with the commission of an offence under this rule or any regulation may issue a warrant under his hand authorising any police officer at any time or times within one month from the date thereof to enter, if necessary by force, the said building or place and every part thereof, and to search for, seize and remove any document, money or valuable thing found therein which he has reasonable ground to suppose are in such building or place for any purpose connected with the infringement of any provision of this Part or any regulations.

9. Forfeiture of stakes dividends, etc., in unlicensed pools betting business. The court before which a person is proved to have committed an offence under section 4 of section 7 of this Law in relation to any pools betting business or any pools betting shall order to be forfeited to the Government any stakes that have been placed and any dividend that has been won or paid in respect of any stake and also any coins, bank notes, any currency notes which may be produced to the court and which are shown to its satisfaction to represent any stakes in relation to such business or any dividend, and may order to be destroyed any documents (other than, bank notes or currency notes) which may be produced to the court and which are shown to its satisfaction to relate to such pools betting business or pools betting as aforesaid.

10. Tax imposed on stakes in Schedule. A tax to be known as pools betting tax, at the rate specified in the First Schedule hereto shall, subject to and in accordance with the provision of this Law be levied on any licensed proprietor carrying on a pools betting business within the State.

11. Summary proceedings without action. (1) Where default is made in the payment of any tax which is due and payable under this Part or any regulations, the appropriate authority or any person duly authorised by it may issue a certificate stating the amount so due, the amount thereto remaining unpaid and the name of the person by whom it is payable, and may file the certificate with any district registrar of the High Court, or with the registrar of any magistrate’s court, and when so filed the certificate shall be of the same force and effect, and all proceedings may be taken thereon, as if it were a judgment of the Court for the recovery of a debt of the amount stated in the certificate against the person named therein. (2) A certificate under the hand of the appropriate authority or any person duly authorised by it stating the amount of tax in default shall, for the purpose of subsection (1) of this section, be conclusive as to the amount of tax that should have been collected.

12. Penalty for fraud or evasion of tax. Any person who wilfully attempts in any manner to evade or defeat pools betting tax or practices or is involved in any fraudulent act, contrivance or devise, whether already specially provided for by this Law or not, with intent to avoid payment of such tax, shall be liable on conviction to a fine of two thousand naira or imprisonment for one year or to both such fine and imprisonment.

13. Recovery of tax by action. Subject to the provisions of this Law tax maybe sued for and recovered in a court of competent jurisdiction by action as for a debt to the Government of the State.

14. Power of the Governor to make regulations. The Governor may make regulations providing for any matter which appears to him to be necessary, for the purpose of giving effect to the provisions of this Law, and in particular without prejudice to the generality of the foregoing- (a) prescribing fees to be paid for the issuance of licences; (b) making provisions for the purpose of preventing fraud on stakers or on the public at large on the part of licensed proprietors, their agents and employees or any other persons.

15. Conditions for the grant of license to pools promoters. (1) Before the grant of a licence, a prospective promoter shall fulfil the following conditions- (a) register his company and submit a certificate of incorporation and a copy of the memorandum and articles of association of the Company; (b) deposit the sum of N100,000 (one hundred thousand naira) as an indemnity to the State and produce a letter of bank guarantee to that effect; (c) produce evidence of payment into the State Government Treasury, a bank draft for the minimum amount of N67,500 in respect of fixed odds only or N75,500 in the case of both fixed odds and treble chance as specified in the Second Schedule hereto. (2) The State Government shall have powers to utilise part or the whole of the amount deposited in accordance with subsection 1 (a) of this section to off-set any default on the part of each pools promoter against Government or pools staker.

16. Conditions for pools promoter’s licence. Every pools promoter’s licence shall be subject to the following conditions in addition to any such special conditions as may be endorsed thereon- (a) all competition shall be carried on in accordance with the rules and the pools promoter shall supply a copy of such rules free of charge to any staker on request; (b) no premises other than the premises specified in the pools promoter’s licence and the premises specified in the license of any pools agent of a promoter shall be used for the purpose of the pools business; (c) a copy of the licence shall be prominently displayed outside the pools promoter’s principal office in the State and also inside and outside each of all other offices in the State used for the purpose of the business; (d) no bets shall be received or negotiated for outside the premises specified for the business; (e) as soon as possible after the receipt of a coupon of other document denoting a bet or bets made in compliance with the rules herein, a copy of the coupon or other documents shall be returned to the staker, signed and dated by the pools promoter; (f) every coupon or other document denoting a bet or bets made in compliance with the rules shall be accepted as an entry in the competition to which it relates and considered accordingly; (g) the pools promoter shall not fail to pay to any person, within one month of the events to which any competition relates, any dividend in connection therewith.

17. Condition for the renewal of licence by pool promoter. Every pools promoter shall have his licence renewed annually on the anniversary of his registration on production of evidence of payment into the Delta State Government Treasury a bank draft for the minimum amount of N67,500 in respect of fixed odds only or N75,500 in the case of treble chance.

18. Condition for pools agent's licence. Every pools agent’s licence shall be subject to the following conditions in addition to any such special conditions as may be endorsed thereon- (a) the pools agent shall not receive or negotiate any bet made by way of pools betting otherwise than on behalf of a person or persons specified in the licence; (b) no premises other than the premises specified in the licence shall be used for the purpose of the business; (c) the licence or a copy thereof shall be prominently displayed inside and outside each of the offices used for the purposes of the business; (d) no bets shall be received or negotiated outside the premises specified in the licence; (e) as soon as possible after the receipt of coupon or other document denoting a bet or bets made in compliance with the rules, a copy of the coupon or other document shall be returned to the staker, signed and dated by the pools agent and the coupon shall be forwarded to the promoter of the competition; (f) the pools agent shall keep registers (the pages of which shall be numbered in serial order) of all bets, showing the staker’s name and the amount staked, and shall retain the registers or cause the registers to be retained, for at least three months after the events to which the bets relate have taken place; (g) the pools agent shall on request at all reasonable times permit- (i) all police officers of above the rank of inspector; and (ii) all persons authorised in writing by the appropriate authority to carry out inquiries relating to pools betting businesses to enter any premises used for the purpose of the business and to inspect all documents and records therein relating to the business; (h) the pools agent shall supply to any staker in a competition on request, a copy of the rules; (i) the pools agent shall issue a pools receipt to every staker in respect of bets initially placed with him by such a staker.

19. Conditions governing the relationship of pools promotion and agents/principal agents. (1) Each agent or principal agent shall be registered by name through his pools promoter and shall be so registered with only one pools promoter at a time. (2) A tax clearance certificate for the immediate past three years of agent or principal agent shall be produced by the promoter before licence is issued or renewed. (3) It shall be an offence for an agent or principal agent to transfer to another promoter unless he has given three months' notice or paid the sum of twelve thousand naira in lieu. (4) When an agent or principal agent leaves a promoter, the new promoter shall register him with the Board of Internal Revenue before employing his services as an agent and such agent shall then forfeit his first registration which shall be transferrable by the former promoter to another agent during the currency of the registration. (5) It shall be an offence for any agent or principal agent to transfer the coupons or money belonging to his pools promoter to other pools promoters. (6) It shall be an offence for any promoter to accept the coupons and money belonging to another promoter from any agent or principal agent who has been registered by another promoter.

20. Offences and penalties. (1) Any licensed promoter who- (i) uses unregistered agents or collectors; (ii) prints, promotes or checks other licensed promoter’s coupons; (iii) pays agents or collectors extra commission or high odds above the approved rate or levels as the case may be; or (iv) pays a rebate to stakers through agents or collectors, shall be guilty of an offence and upon conviction liable to a fine of fifteen thousand naira or to a term of imprisonment not exceeding five years or to both. (2) Any person who contravenes or fails to comply with any of the provisions of sections 16, 17, 18 and 19 of this Law shall be guilty of an offence and upon conviction liable to a fine of fifty thousand naira or to a term of imprisonment not exceeding five years or to both.

21. Forms of licence. (1) A licence for carrying on a pools betting business issued to a pools promoter under the provisions of this Law shall be in accordance with Form A in the Third Schedule hereto. (2) A licence for carrying on a pools betting business issued to a pools agent under the provisions of this Law shall be in accordance with Form B in the Third Schedule hereto.

22. Arbitration. (1) Any dispute between a pools promoter or pools agent and a staker arising out of or in connection with pools betting business which cannot be mutually settled by the parties shall be referred to an arbitration panel of the Board of Internal Revenue which snail consist of the Director of Internal Revenue as chairman, the representative of the Ministry of Justice and the representative of the Ministry of Finance in the Board as members. (2) The findings of the arbitration panel shall be binding on the parties.

23. Cessation of Pools Betting (Control and Taxation) Law, 1986 and subsidiary legislation made thereunder. The Delta State Pools betting (Control and Taxation) Law, 1986 and the subsidiary legislation made thereunder shall from the date of commencement of this Law cease to apply in the State. Schedule 1 POOLS BETTING (CONTROL AND TAXATION) LAW [Section 10.] Rate of Pools Betting Tax

1. Rates of pools betting tax shall be as follows- Types of Pools Betting- Rates of Tax (a) Fixed odds pools betting N7,500 (b) Treble chance pools betting N8,000

2. The above rates of tax shall be payable in advance on a weekly basis or in such other manner as the appropriate authority may from time to time direct. Schedule 2 POOLS BETTING (CONTROL AND TAXATION) LAW [Section 15 (c).] Rate of Fee for Pools Promoter's Licence

1. Rates of fees for pools promoter's licence shall be as follows- (a) Minimum of 100 collector/agents at N500 each per annum................................ N50,000 (b) Annual Registration............................................................................................. N10,000 (c) Weekly stake tax for fixed odds pools................................................................. N7,500 (d) Weekly stake tax for treble chance pools............................................................ N8,000

2. The above rates of fees and taxes shall be payable in advance before the issuance of promoter's licence. Schedule 3 POOLS BETTING (CONTROL AND TAXATION) LAW [Section 17.] Rate of Fee for the Renewal of Pools Promoter's Licence

1. Rates of fees for the renewal of pools promoter's licence shall be as follows- (a) Minimum of 100 collector/agents at N500.00 each per annum................................ N50,000 (b) Annual registration.................................................................................................... N10,000 (c) Weekly stake tax for fixed odds pools....................................................................... N7,500 (d) Weekly stake tax for treble chance pools.................................................................. N8,000

2. The above rates of fees and tax shall be payable in advance before the renewal of promoter's licence on an annual basis (or) in such other manner as the appropriate authority may from time to time direct. Pools Betting (Control and Taxation) Law, 1996. FORM A Pools Promoter's Licence No............................. Name............................................................................................................................ Address ....................................................................................................................... Is hereby licensed to carry on a pools betting business on his/its own behalf at the following premises only- (a) ....................................................................................................................... (b) ....................................................................................................................... (c) .......................................................................................................................

1. This licence is subject to the conditions prescribed in section 16 of the Pools Betting (Control and Taxation) Law, and to the special conditions (if any) endorsed hereunder- (a) ....................................................................................................................... (b) ....................................................................................................................... (c) .......................................................................................................................

2. This licence expires on the..............................................................................,

3. Fee paid: ..................................................................................................................................... ............................................................ Commissioner for Finance and Economic Planning Date..................................................................... POOLS BETTING (CONTROL AND TAXATION LAW FORM B Pools Agents' Licence No......................................................... Name.................................................................................................................................................... Address................................................................................................................................................ is hereby licensed to carry on a pools betting business on his/its own behalf of the following only- (a) ....................................................................................................................... (Name) (Address) (b) ....................................................................................................................... (Name) (Address) (c) ....................................................................................................................... (Name) (Address) The said business shall be carried on in the following premises only- (a) ....................................................................................................................... (b) ....................................................................................................................... (c) .......................................................................................................................

1. This licence is subject to the conditions prescribed in section 17 of the Pools Betting (Control and Taxation) Law, and conditions (if any) endorsed hereunder- (a) ........................................................................................................................................... (b) ............................................................................................................................................

2. This licence expires on the...................................................................

3. Fee paid: N.................................................................................................................................. ........................................................... Commissioner for Finance and Economic Planning Date...................................................................