Sports-betting giant Superbet has sued the Guyana Revenue Authority (GRA) and the Gaming Authority for not processing its application for betting licences and imposing the requirement of good standing certification as a precondition.
Against this background, Superbet, the applicant, is asking the High Court to compel the GRA and its Commissioner-General to process its request for licensing for this year and last year.
Additionally, it wants the court to quash the decision of the Gaming Authority and its Chief Executive Officer, who it says have imposed a requirement of good standing certification, as a condition precedent to its request for betting shop licence.
The applicant is contending that this requirement, which was imposed by the Gaming Authority, was influenced by irrelevant considerations, illegal and made in breach of its legitimate expectation.
As a result, Superbet is seeking from the court an injunction restraining the GRA and Gaming Authority (the respondents) from interfering with or interrupting its business operations until the hearing and determination of the matter.
In an affidavit supporting his application, Superbet’s General Manager Shrikant Kisoensingh said that his company, which operates under the name Guiana Holding Inc., has been engaged in the business of sports betting for the past seven years.
He said that from the commencement of his company’s operation in 2012, his application to the GRA for betting licences had always been granted once the relevant fees were paid.
In his affidavit, the general manager said that for the years 2012, 2013, 2014 and 2015, the relevant fee was $2,000,000 annually, while noting that it increased by $1 million for 2016 and 2017.
He explained that his licences have always been renewed by the Revenue Authority on a yearly basis without hindrance, after he would have paid the required fee.
According to the court documents seen by this newspaper, Kisoensingh said that his company remits millions to the GRA in taxes, including all other taxes, such as corporation and value-added taxes.
He said, too, that he pays the required contributions on behalf of his employees, to the National Insurance Scheme.
Superbet’s manager said that over the years his company’s operations have been open and transparent and has never been called into disrepute by any government agency, except in 2017 when the Gaming Authority wrote him, directing that he suspend operations immediately.
According to a document attached to the court files, which Kisoensingh said is a copy of the letter sent to him by the Gaming Authority, Superbet failed to submit documents that it was in possession of any licence permitting “internet gambling, sports betting and or lotteries.”
Against this background, the letter, dated June 8th, 2017, goes on to add, “you are therefore directed with immediate effect to suspend immediately all internet gambling, sports betting and or lotteries and any other form of gambling whatsoever and where so ever in the State of in Guyana until further notice.”
The document was signed by Roysdale Forde in his capacity as Chairman of the Gaming Authority of Guyana.
In response to the latter, Kisoensingh said he advanced that his company’s operations did not fall under the purview of the Gambling Prevention Act and, therefore, the Gaming Authority had no authority to direct the suspension of its operations.
He added that the move by the Gaming Authority subsequently prompted him to initiate legal proceedings, which he filed on June 28th, 2017, asking the court to quash the decision requiring him to suspend his company’s operations.
In response, Kisoensingh said the Gaming Authority held to the position that Superbet’s operations does fall under its purview, while contending that it is a lottery.
Notwithstanding the institution of those proceedings and the dispute surrounding whose jurisdiction Superbet’s operations fell under, Kisoensingh said that on December 21st, 2017, in accordance with the Tax Act under which he has always applied for and been granted licences, he attempted to lodge an application with GRA’s Commissioner General for betting licence for the year 2018.
He said he was, however, informed by the Revenue Authority, that at that time, it was neither accepting nor processing applications for betting shop licences for the year 2018 since although the national budget for that year had been read in Parliament, the Appropriation Act and any consequential amendments to the Acts under which the GRA enjoyed statutory power had “yet to be assented to and promulgated.”
The applicant said that GRA told him that he would be contacted once it resumed issuing the licences for 2018.
Kisoensingh said that on January 20th, 2018, however, he received a letter from Director of the Financial Intelligence Unit informing him that the Minister of Finance had revoked GRA’s appointment as the supervising authority of Betting Shops, pursuant to the Anti-Money Laundering and Countering the Financing of Terrorism Act, and appointed, instead, the Gaming Authority to that position.
According to Kisoensingh, by September 4th, 2018, Chief Justice (ag) Roxane George S.C. had granted his company, among other things, a writ of certiorari quashing the prior decision of the Gaming Authority ordering the immediate suspension of Superbet’s operations.
Kisoensingh said that in subsequent follow-ups with GRA regarding his licence-application for 2018, he was informed that he first needed to present a certificate of good standing from the Gaming Authority
According to him, 10 days after the Chief Justice issued the order settling the question as to whose jurisdiction the business operations fell and the issue surrounding the supervisory authority for betting shops, Superbet applied to the Gaming Authority to be issued with a certificate of good standing.
This, he said, was not granted. He added that prior to 2018, neither the GRA nor the Gaming Authority ever required or mandated that the applicant obtain a certificate of good standing before the issuance of betting shop licences.
Kisoensingh said the impasse created by the respondents mandating that Superbet obtain good standing certification has caused his company to suffer irreparable harm and damage.
He said because of the move from the GRA and the Gaming Authority, the Bank of Baroda (Guyana) Inc. suspended Superbet’s banking account unless he submitted licences for the business for 2018 and 2019.
He also said other financial institutions have refused to do business with his company because of the impasse created by the respondents.
Kisoensingh added that as far as he is aware, no other betting company has been required to obtain a certificate of good standing.
Superbet is being represented by attorneys Anil Nandlall and Rajindra Jaigobin.
