Desert Palace Hotel Resort (Pty) Ltd v Nothern Cape Gambling Board (630/05) [2006] ZASCA 114; [2007] 3 All SA 573 (SCA); 2007 (3) SA 187 (SCA); 69 SATC 133 (24 November 2006)

Desert Palace Hotel Resort (Pty) Ltd v Nothern Cape Gambling Board (630/05) [2006] ZASCA 114; [2007] 3 All SA 573 (SCA); 2007 (3) SA 187 (SCA); 69 SATC 133 (24 November 2006)

The Supreme Court of Appeal held that Desert Palace was not a 'holder of a licence' as contemplated by section 65 of the 1996 Act and section 81 of the 2000 Act during the relevant period, because no formal licence document had been issued to it. The statutes require that a licence be physically issued and in writing, and the mere approval of an application does not suffice to create liability for gambling levies and penalties. The court found that the lower court erred by deeming Desert Palace a licence holder based on equitable considerations rather than statutory interpretation. As Desert Palace was not a licence holder, it was not liable for the penalty imposed by the Board, and the...

Citation
[2006] ZASCA 114
Parties
Appellant: Desert Palace Hotel Resort (Pty) Ltd; Respondent: Northern Cape Gambling Board
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
24 November 2006
Case Number
630/05
Procedural Posture
Civil Appeal / Appeal From Northern Cape Provincial Division; Leave to Appeal Granted by Supreme Court of Appeal
Outcome
Appeal upheld; order of the court below set aside and replaced.
Judges
Cameron, Conradie, Maya, Combrinck, Cachalia
Legal Topics
Gambling Levies, Licensing Requirements, Statutory Interpretation, Penalties for Non Payment
Commercial and Corporate Tax Law Gambling Levies Licensing Requirements Statutory Interpretation Penalties for Non Payment

Case Brief

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Parties

Desert Palace Hotel Resort (Pty) Ltd

Appellant

Northern Cape Gambling Board

Respondent

Procedural Posture

Civil Appeal / Appeal From Northern Cape Provincial Division; Leave to Appeal Granted by Supreme Court of Appeal

Legal Issues

  1. 1 Whether Desert Palace was the 'holder of a licence' in terms of section 65 of the Northern Cape Gambling and Racing Amendment Act 5 of 1996 and section 81 of Act 6 of 2000 during the relevant period.
  2. 2 Whether the Board was entitled to levy penalties on outstanding levies in terms of the Act read with Regulation 95, and whether Regulation 95 was authorised by the Act's enabling section.

Ratio Decidendi

The Supreme Court of Appeal held that Desert Palace was not a 'holder of a licence' as contemplated by section 65 of the 1996 Act and section 81 of the 2000 Act during the relevant period, because no formal licence document had been issued to it. The statutes require that a licence be physically issued and in writing, and the mere approval of an application does not suffice to create liability for gambling levies and penalties. The court found that the lower court erred by deeming Desert Palace a licence holder based on equitable considerations rather than statutory interpretation. As Desert Palace was not a licence holder, it was not liable for the penalty imposed by the Board, and the...

Court Disposition

Appeal upheld; order of the court below set aside and replaced.

Orders

  • The appeal succeeds with costs, including the costs of two counsel.
  • The plaintiff's action is dismissed with costs.