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Highlights of the Legal Framework for the Setting-Up and Regulation of Casino and Gaming Houses in Akwa Ibom State



1.       Introduction

Licensing and regulation of Casinos and Gaming Houses in Akwa Ibom State is governed by the Casinos and Gaming Houses Law Chapter 23, Laws of Akwa Ibom State 2000. By section 1 of the Casinos and Gaming Houses Law thereof, any person may operate a Casino or Gaming House in Akwa Ibom State.

2.       Issuance of Licence to Operate a Casino or Gaming House

The Commissioner of Finance may, upon application and payment of prescribed fee, issue a licence to any person authorizing such person to:

(a)        Operate a Casino;
(b)        Operate a Gaming House; or
(c)        Operate both a Casino and Gaming House.

3.       Validity of Licence so Issued

Every such licence issued under the law is valid for a period of twelve (12) months from the date of issue and may upon payment of the prescribed fee, be renewed for a further period of twelve (12) months from the date of first issue or the last renewal thereof: section 2(3) of the Casinos and Gaming Houses Law.

4.       Discretion of the Commissioner in the Issuance of Licence.

The issue, renewal, and refusal to issue or renew a license and the addition to, alteration or cancellation of any special condition to a licence shall be at the discretion of the Commissioner.

5.       Non-Transferability of a Licence

A license shall not be transferred by any licensee to another person except with the prior approval of the Commissioner of Finance.

6.       Revocation of a Licence

A license shall be revoked with or without notice if the Commissioner is satisfied, following a complaint by the Commissioner of Police, that the license should be revoked, or if in any criminal proceedings the court so orders. Indeed, a license may be revoked with or without notice by the Commissioner for breach of any special condition. 

7.       Fees, Levies and Tax for every Licence

By section 7 of the Casinos and Gaming Houses Law, every licensee operating a Casino in Akwa Ibom State shall pay a fee to be known as Casino Revenue Fee. The ratio of Casino Revenue Fee for the time being shall be N480,000.00 (Four Hundred and Eighty Thousand naira) per annum.

Similarly, every licensee operating a Gaming House in Akwa Ibom State shall pay a fee to be known as Gaming House Fee. The ratio of Gaming House Fee for the time being shall be N120,000.00 (One Hundred and Twenty Thousand naira) per annum.

The prescribed fees shall be deemed to be debts owed to the Government of Akwa Ibom State and shall be recoverable as such by and payable to, the State Board of Internal Revenue in the manner prescribed by law.

Another relevant provision which corroborates section 7 above is section 9 thereof. By the latter provision, there shall be levied in respect of every Casino ad valorem tax at the rate of fifteen per cent (15%) of the gross takings of each day which shall be paid over to the State Board of Internal Revenue at such times as the Commissioner may prescribe and it shall be the duty of every licensee to keep separate books of account for this purpose in such form and manner as the Commissioner may from time to time prescribe.

Mention must also be made of section 19 of the Law which makes certain mandatory provisions regarding deposit to be made as security for payment of taxes, fees and winnings. According to this section, every person applying for a licence to operate a Casino or Gaming House shall at the time of application:

(a)        In respect of a Casino, make a cash deposit or furnish a banker’s guarantee in the sum of N1,000,000.00 (One Million Naira);

(b)        In respect of a Gaming House, make a cash deposit or furnish a banker’s guarantee in the sum of N500,000.00 (Five Hundred Thousand naira).

8.       Daily and Monthly Returns of Gaming, Wagering and Betting.

Section 10 of the law states that in the forenoon of each day a licensee shall deliver to the Commissioner in such form as the Commissioner may prescribe; a return of the previous day’s gaming. In similar vein, on or before the seventh day of each month, the licensee shall deliver to the Commissioner, in such form as the Commissioner may prescribe, a summary of the daily returns showing the gross revenue of the previous month.

9.       Persons Answerable for Fulfilling Requirements and Liable for Payment of Tax and Penalties.

It is pertinent to draw attention to the provisions of section 13 of the Law. That section provides that every licensee shall be answerable and where the licensee is a body corporate, every Director, Manager, Secretary and Chief Officer thereof shall be jointly and severally answerable for doing all acts, matters and things which are required to be done under or by virtue of the Law for the assessment and imposition of tax; and every licensee and the said officers shall also be jointly and severally liable for the payment of taxes and penalties imposed under the law.

10.    Power of Inspection by a Police Officer

Under section 14 of the Law, a Superior Police Officer in uniform or any other person authorized in that behalf by the Commissioner in writing and upon production on demand of the written authority, may at any time enter a Casino or Gaming House and carry out inspection.

Where during such inspection the police officer or other person authorized in that behalf reasonably suspects that the Casino or Gaming House is not being kept in accordance with the conditions prescribed by or under this Law, he may without warrant search the Casino or Gaming House.

Where upon searching the Casino or Gaming House pursuant to the foregoing, such Police Officer or other person discovers that the Casino or Gaming House is being operated in contravention of the conditions prescribed by or under this law, he shall seal of the Casino or Gaming House pending the prosecution in a court of law of the person who operates the Casino or Gaming House.  

11.    Delegation of Functions


Lastly, the Commissioner may subject to such conditions as he may think fit, delegate any functions (other than the function of making regulations) conferred on him by the Casinos and Gaming Houses Law to the State Board of Internal Revenue.
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