NAIROBI: The scramble for control of the billions in betting and rotary taxes paid by gaming institutions raged in court where the Nairobi County Government defended its right to collect the money.
The Association of Gaming Operators has moved to court in a bid to stop the Governor Evans Kidero-led county from demanding for taxes when it is issuing operation licences.
But the county in its defence says that it is legally entitled to claim what belongs to it in terms of levies. In the three petitions filed by the betting institutions, (two filed last year and one filed this year) they claim that they cannot be subjected to obeying two Caesars, the national government and the county government.
The association through lawyer Robert Macharia told High Court Judge Mumbi Ngugi that they were issued licences by the national government which are supposed to expire in June this year and thus the demand by the county that they should close their doors until they pay for operation licences is illegal.
"We cannot serve two masters. We are already paying taxes to the national government and thus cannot do the same to the county government," Macharia said.
The association acquired temporary orders stopping the county from demanding the levies but the county through lawyer Muthomi Thiankolu now wants them quashed on grounds that enforcing them "will constrain the efforts by the county to collect revenue".
Last year, the county announced that it would expand its revenue base to finance its budget and it was targeting collection of liquor licencing fees and betting and control licences as a result of the passing of the Alcoholics Licencing, Betting and Lotteries Bill 2014.
pool tables
The county said that it would further target pool dens, bookmakers, casinos, public lotteries, and pool betting to raise cash from the gaming industry.
However, the association moved to court challenging the constitutionality of the law, saying it contravenes the Betting Control and Licencing Act. This case is before Justice Isaac lenaola and will be heard on January 19.
The Court heard that in a letter dated December 10, 2014, the county told association members that they would not be authorised to run their businesses in 2015 until they applied for permits under the Nairobi City County Betting, Lotteries and Gaming Act, 2014.
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