Phumelela Gaming and Leisure’s High Court review application to set aside an amendment to legislation made by the Gauteng Gambling Board and Gauteng MEC to the Gambling legislation, continues.
The amendment removed the payment of a 3% levy on winning fixed odds bets on horse racing to the beleaguered racing operator, and was referred to in the company’s Business Rescue status report this month.
Public Protector, Adv Busisiwe Mkhwebane (Photo: Flickr)
The GGB stopped paying Phumelela’s share of the bookmakers’ levy following a stinging report by public protector Busisiwe Mkhwebane in April 2019.
Phumelela have argued that this situation was brought about by the actions of the Gauteng Gambling Board – a government agency – on the instruction of what they suggest was a highly compromised Public Protector.
Mkhwebane’s report into allegations of maladministration and improper conduct in connection with the privatisation of the South African thoroughbred horseracing industry in the late 1990s was sweeping, and one of the recommendations put forward was that the GGB stop paying Phumelela the 50% of the 6% the operator received from the bookmakers’ levy
Evans said in his status report this week that this levy contributed substantially to Phumelela’s revenue. He advised that the matter is proceeding and all affidavits have been filed.
The company served an amendment to Part B of its Notice of Motion.
Effectively, this amendment, when granted, allows the Company, if it is successful in setting aside the legislation, to claim the monetary value of the 3% it has lost from the date the amended legislation was effective to 30 November 2021.
After this date, the benefits under the license ceased and vested in 4Racing (Pty) Ltd.
This amendment to the Notice of Motion is currently opposed by the Gauteng Gambling Board.
4Racing (Pty) Limited have applied to intervene in the proceedings, given their interest in this benefit with effect from 1 December 2021. Phumelela does not oppose this intervention. It is however being opposed by the Gauteng Gambling Board.
Evans advises that the court file is available on request and will be provided to affected persons should they submit a request in writing to the business rescue practitioner a [email protected].
Condensed Interim Financial Results have been prepared for the 7 months ended 28 February 2022 and can be seen by clicking here.
Notice of a Meeting of Shareholders to be held via Zoom Webinar on 12 July 2022 can be read here.
