Vukani Gaming Eastern Cape (Pty) Ltd v Chairperson, Eastern Cape Gambling and Betting Board and Others (5130/2017) [2019] ZAECGHC 5 (31 January 2019)

Vukani Gaming Eastern Cape (Pty) Ltd v Chairperson, Eastern Cape Gambling and Betting Board and Others (5130/2017) [2019] ZAECGHC 5 (31 January 2019)

The court held that the prior judgment of Smith J in the interdict proceedings was dispositive of the present review application, as it addressed the same issues regarding the rationality and legality of the Board's decision under Regulation 59(3). The applicant failed to demonstrate that Smith J's findings were clearly wrong. Furthermore, the court found that the issuing of the RFP did not constitute administrative action under PAJA, as it lacked direct external legal effect, and that Regulation 59(3) applies at the licensing stage, not the RFP stage. The Board's process, including commissioning studies, consulting stakeholders, and considering relevant factors, satisfied the rationality...

Citation
[2019] ZAECGHC 5
Parties
Applicant: Vukani Gaming Eastern Cape (Pty) Ltd; Respondent: Chairperson, Eastern Cape Gambling and Betting Board; Respondent: Eastern Cape Gambling and Betting Board; Respondent: Pioneer Slots (Pty) Ltd; Respondent: Marshalls World of Sports Eastern Cape (Pty) Ltd; Respondent: K201744277 (Pty) Ltd; Respondent: Golden Palace Site 3 (Pty) Ltd; Respondent: Gslots ISO EC (Pty) Ltd; Respondent: Spin and Win Entertainment Mbizana (Pty) Ltd; Respondent: GEC Gaming (Pty) Ltd; Respondent: K20140002030 (Pty) Ltd; Respondent: Golden Palace Site 1 (Pty) Ltd
Court
Eastern Cape High Court, Grahamstown
Jurisdiction
South Africa
Judgment Date
31 January 2019
Case Number
5130/2017
Procedural Posture
Review Application / Judgment on Review Application
Outcome
Application dismissed with costs, including costs of two counsel where applicable.
Judges
Dawood
Legal Topics
Promotion of Administrative Justice Act, Principle of Legality, Limited Payout Machines Regulation, Review of Administrative Action, Rationality Test, Gambling Licensing

Case Brief

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Parties

Vukani Gaming Eastern Cape (Pty) Ltd

Applicant

Chairperson, Eastern Cape Gambling and Betting Board

Respondent

Eastern Cape Gambling and Betting Board

Respondent

Pioneer Slots (Pty) Ltd

Respondent

Marshalls World of Sports Eastern Cape (Pty) Ltd

Respondent

K201744277 (Pty) Ltd

Respondent

Golden Palace Site 3 (Pty) Ltd

Respondent

Gslots ISO EC (Pty) Ltd

Respondent

Spin and Win Entertainment Mbizana (Pty) Ltd

Respondent

GEC Gaming (Pty) Ltd

Respondent

K20140002030 (Pty) Ltd

Respondent

Golden Palace Site 1 (Pty) Ltd

Respondent

Procedural Posture

Review Application / Judgment on Review Application

  1. 1 Whether the decision by the Eastern Cape Gambling and Betting Board to issue and publish a Request for Proposals (RFP) for Independent Site Operator licenses constituted administrative action reviewable under PAJA or was subject to legality review.
  2. 2 Whether the Board complied with Regulation 59(3) of the Eastern Cape Gambling and Betting Act in issuing the RFP and subsequent licenses.
  3. 3 Whether Smith J's prior judgment in the interdict proceedings was dispositive of the present review application.

Ratio Decidendi

The court held that the prior judgment of Smith J in the interdict proceedings was dispositive of the present review application, as it addressed the same issues regarding the rationality and legality of the Board's decision under Regulation 59(3). The applicant failed to demonstrate that Smith J's findings were clearly wrong. Furthermore, the court found that the issuing of the RFP did not constitute administrative action under PAJA, as it lacked direct external legal effect, and that Regulation 59(3) applies at the licensing stage, not the RFP stage. The Board's process, including commissioning studies, consulting stakeholders, and considering relevant factors, satisfied the rationality...

Court Disposition

Application dismissed with costs, including costs of two counsel where applicable.

Orders

  • The application is dismissed.
  • The applicant is directed to pay the costs of all respondents who opposed the application, including costs of two counsel where applicable.