Court orders lottery firm to deposit Sh50m

A director of the Betting Control and Licensing Board Amos Kwasi leaves the High Court December 29, 2010 after the hearing of a dispute involving a lottery. The promoters of the Lottery Interactive Gamming and Lotteries ltd, moved to court after BCLB threatened to revoke its licence. Justice Mohammed Warsame ordered the promoters to deposit Sh50 million in court to enable them continue with the lottery. JENNIFER MUIRURI  

By SAM KIPLAGATPosted Wednesday, December 29 2010 at 17:42

The promoters of a lottery currently running on local TV stations have been given two days to deposit Sh50 million in court to enable them continue with the raffle.

Issuing the order, Justice Mohammed Warsame directed Interactive Gamming and Lotteries ltd, to deposit the money in court within 48 hours adding that the promoters will only enjoy the status quo, after furnishing the deputy registrar of the High Court with the deposit slip.

The status quo to be granted after the deposit means that the lottery which is operated through mobile phones under a short code 6969, will run uninterrupted.

In the case, Interactive Gamming moved to court after regulator, Betting Control and Licencing Board (BCLB) threatened to terminate its licence. Through Mr Kariuki Muigua, the company alleged that tens of thousands of Kenyans had participated in the lottery and were eagerly waiting for the final draw.

The lawyer argued that any termination might cause public resentment or even civil unrest.

On its part, BCLB says that it was wrote to company threatening to revoke the licence after it failed to comply with the board’s conditions and changing the prizes structure without consultations.

Through lawyer Charles Mwanzia, the board alleges that when the company was granted the licence, the prizes to be won were Sh12 million in cash, a brand new Toyota Hillux, 8 Ford Rangers and 38 Toyotas.

But thereafter, the company allegedly changed the prizes to include Sh100 million in cash, a Nissan Navara, 9 Nissan NP 200, 30 Toyota Vitz and 9 Toyota lsts. Later, the prizes were changed to a Jeep Wrangler, 8 Nissan NP 200, 45 Toyota Vitz and 8 Toyota lsts.

The lawyer added that in the letter to company, the regulator wanted to be furnished with names of its directors and the returns of the lottery since at inception, the company alleged that it was raising funds in aid of Mama Fatuma Goodwill Children’s Home.

According the BCLB rules, every promoter is required by law to devote at least 25 per cent of its gross proceeds to charities.

The board further says that the promoters were guilty of a criminal offence after transferring the raffle to Mzalendo Bora 6969 from 6868 and incorporating a new entrant known as Flint East Africa ltd.

The company says that it made the changes due to underperformance of the 6868. In the first lottery, participants were charged Sh50 for every SMS but are now charged Sh69 per SMS.

During the hearing, Justice Warsame also directed the promoters to comply with the rules of the lottery as explained in a letter sent to the company by the board on December 20, 2010.

The case will be mentioned on January 24, 2011.