By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
THE web shop industry is arguing that the sector’s “development of technology and business methods” have taken it outside the regulatory purview of the Lotteries & Gaming Act.
Percy’s Web Cafe, Island Luck, the FML Group of Companies, Chances Internet Services, WhatFall and Asue Draw are alleging that their Internet, technology-based businesses are “outside the behaviour defined in and covered by” the Act.
According to an affidavit filed in the Supreme Court on behalf of the web shops by their attorneys, Munroe & Associates, the six companies operate more than 100 web shops in Abaco, Andros, Bimini, Cat Island, Eleuthera, Exuma, Inagua, Long Island, Grand Bahama and New Providence.
The affidavit alleges that the plaintiffs were licensed by the Business License Division of the Ministry of Finance, and were fully compliant with the Act. And, since they started operating, there had been no attempt by the Government to close down the/industry.
The documents alleged that apart from WhatFall , the other five web shop operatoers all attended meetings held by the then-Minster of Finance, former Prime Minister Hubert Ingraham, in 2010.
They provided the Ministry with information on the activities of the web shop businesses, and it carried out site visits and inspections at their businesses. Their licenses were all renewed the following year according to the affidavit.
“Based on (a) the issue of the licenses of the plaintiffs following the meeting with the officials from the MInistry of Finance, and (b) the terms of the Business License Act, there is a legitimate expectation by the plaintiffs that their business operations would not be interfered with by the Government,” the affidavit stated.
Following the January 28 poll, which saw the majority of voters reject the regulation and taxation of web shop gaming in the Bahamas, Prime Minister Perry Christie issued a statement ordering web shop owners and operators to immediately “cease and desist” from all on-line gaming and numbers activities.
They were, however, not required to close the door on their employees and those persons with whom they have lawful commercial relationships, including landlords, utility and service companies, suppliers of goods and other third-party creditors.
This prompted web shop operators to seek an injunction from the Supreme Court. An injunction was granted to prevent the Government, police, and Attorney General from shutting down web shops until the main issues are litigated.
Comments
MartGM 11 years, 2 months ago
These web shops may very well be outside the regulatory powers of the gaming board, but their actions i.e. gambling, are covered under the constitution of the Bahamas. According to the constitution, those actions are illegal. This issue has become nothing more than poppycock!! SMT.
conian7 11 years, 2 months ago
They have yet to explain HOW Technology has put them outside the law. If you read the Lotteries and Gaming Act of 1969 it clearly defines what the words in the ACT mean and then states under what conditions they are illegal.
The Act says that "Machines" includes ANY Apparatus.
“lottery” includes any sweepstake and any game, method or device whereby money or money’s worth is distributed or allotted in any manner depending upon or to be determined by chance or lot, held, drawn, exercised or managed whether in The Bahamas or elsewhere or upon the basis of the outcome of a future contingent event whether occurring in The Bahamas or elsewhere and also includes the game called or known as “numbers”;
According to the Act Citizens of The Bahamas are not allowed to engage in lotteries or gambling. The Act is available online - don't let people fool you about what it says!
mdraconis 11 years, 2 months ago
This is easy to circumnavigate. It's as simple as moving their domain to a host outside of the Bahamas. Then place all gaming activities on said websites. With our current laws there is nothing we can do I don't think. i.e. See: http://www.pcworld.com/article/249132...">http://www.pcworld.com/article/249132...
GilbertM 11 years, 2 months ago
In my view - even though I have never gambled in my life - Numbers and Asue are not activities which are meant to be commercialized. They are a cultural practice and are part of that anthropological unsystematic systemisation that is uniquely Bahamian, and is an expression of the failure of our governments to lift their people out of a life of 'quiet desperation'.
In the same manner that in developed countries, ordinary people have chequing accounts and over-drafts as a means of managing and off-setting shortfalls in financial resources, prudence and discipline aided by social trust drives and sustains Asue, and Occultism, irrational optimism and quiet desperation drives and sustains Numbers.
Both of these practices emerged because - as I explained 7-years ago in a lecture at the Rotary Club meeting at East Villa in Nassau - economic activity in the Bahamas has been largely exhibited and exercised in black and gray markets for nearly 300-years. The reason, again, is that - unlike, let us say, Singapore - our governments have failed to educate our people for development, and have failed to apply our resources to lift our people up beyond these practices into a system of life that is suitable, predictable or sustainable, given the resources which have been available to us since we have had majority rule.
Numbers and Asue are proofs of that failure.
As such, I find the discussion concerning Numbers in particular or Gambling general to be a meta-discussion sitting high above the real world truth of our situation; such that it fails to examine or explain what lies behind the popularity of these asymmetrical economic practices; as is typical with us.
Professor Gilbert NMO Morris
Gadfly 11 years, 2 months ago
Professor Morris, this is a very interesting observation and one with which I fully concur. A direct corollary of this potential commercialization is a regressive taxation regime on the many to redistribute wealth to the few. What appears to be economic activity and benefits from gaming are merely the by-products of having wealth concentrated in the hands of a few individuals. These activities detract from a sustainable economic development plan and offer little to no inter-industry linkages or sustainable economic growth. As a matter of fact, if the estimated $400 million dollars per annum that is spent gambling were to be re-directed to savings by Bahamians, or even half that amount, in ten years the Bahamas would be a formidable economic force in this region. This increased savings would allow broader and deeper investments by Bahamian businesses in our economy. It would jump-start, broaden and deepen our capital markets thereby facilitating wider share ownership. It would also unleash our entrepreneurial spirits, stimulate small business growth and spur sustainable job creation that can keep pace with students entering the work force every year. Yet, instead of attempting to educate us about our potential, our politicians are too busy trying to enrich themselves and their friends, while they try to make us believe that it’s the bogeyman that is keeping us from our true potential.
BillGates 10 years, 7 months ago
This web shops are just not under the ruling of gaming board. SO what do they have to do? It is comparable against the so called crime in using http://www.inkjetsuperstore.com/">remanufactured ink cartridges
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