By KHRISNA RUSSELL
Deputy Chief Reporter
krussell@tribunemedia.net
AS people increasingly use gaming houses as a means to move money in view of some clearing banks closing branches throughout the Bahamas, there is worry that this unregulated activity may put the country on an international “black list,” affecting the stability of the country’s banking sector, Tourism Minister Dionisio D’Aguilar told Parliament yesterday.
However, he said, while the limited number of gaming houses enjoy the “benefits of being a cartel,” the “cash strapped” government should increase tax revenue from this sector, suggesting the Minnis administration could be considering increased taxes for operators.
He prefaced this by saying in reviewing the financial statements of operators, they were receiving “eye popping” profits. Mr D’Aguilar said the Gaming Board is expected to soon meet with gaming houses with a view to considering how best this can be done.
“The dynamics of the modern-day gaming industry in the Bahamas and the rapidly changing aspects of the national gaming marketplace has radically transformed the gaming industry in our country since 2014,” the Free Town MP said yesterday.
“The old ‘numbers’ businesses are now gaming houses and collectively, these emerging concerns are employing a significant number of Bahamians.
“However the number of Bahamians that dare to gamble continues to grow and grow and naturally this is of growing concern to the government. I have had a chance to review the financial statements of the gaming houses and the profits reported are eye popping.”
And despite an active moratorium to prevent new companies from entering the market, there continues to be proliferation of shops, the minister suggested.
“With a moratorium in place to prevent any new companies from entering the market, the eight remaining gaming houses continue to enjoy the benefits of being a cartel in much the same way as the clearing banks do.
“In addition, there is consolidation underway among the gaming houses where the biggest player is seemingly gobbling up the smaller players and while there may be eight gaming houses in the public domain, some of the gaming houses have the same owners.
“With the gaming houses being so cash rich and the government being so cash strapped fulfilling its requests for social services and education, I am sure that the minister of finance will be looking to enhance his tax revenues from this sector.
“As such the Gaming Board will be entering into discussions with the gaming houses to see how best this can be done.”
Regarding clearing bank closures in several islands, the minister said web shops are becoming a more attractive means to move cash.
“…Gaming houses are unintentionally or intentionally becoming the easiest and cheapest way to move cash throughout the islands.
“This is worrying because this type of unregulated cash movement without any ‘know your consumer’ regimes in place will surely at some time, set off alarm somewhere in the world in one of those organisations that can put us on some list, typically known as the ‘black list,’ and injure our ability to conduct banking relationships overseas.
“As such, Mr Speaker, the Gaming Board will consult with the authorities at the Central Bank to determine how best to move forward on this issue to ensure the gaming houses do not negatively impact the stability of our financial sector.”
Mr D’Aguilar said the Gaming Board will further push gaming houses to become more creative in controlling out of control gambling.
In 2014, after Bahamians overwhelmingly voted against legalising web shops in a referendum on January 28, 2013, 25 government MPs in the former Christie administration voted to pass amendments to the Gaming Act in the House of Assembly, making the sector legal.
At the time, then Prime Minister Perry Christie said based on unverified information presented by most web shop operators, the government could yield “some $25 million” in penalties, back business licence fees and application fees during the transition. He said during this period operators would have been required to disclose the revenues generated by their operations in the past while paying a variety of fees.
Between $22 million and $29 million was expected to be obtained from gaming taxes, social contributions from businesses and other fees on an annual basis, the former prime minister had said.
Comments
Gotoutintime 6 years, 6 months ago
To hell with a "Tax Hike" ----Close the bastards down----They are killing the poor people!
Sickened 6 years, 6 months ago
Tax them out of business PLEASE!!!!
TalRussell 6 years, 6 months ago
Comrades! The fancy plane that PM Minnis, flew off to deliver the $60,000 hurricane relief cheque to the Dominican prime minister, seats 16 passengers and originally sold for $33 million and its current ownership is registered to Willis Lease Finance Corp.
DDK 6 years, 6 months ago
He COULD have wired the donation! My bad. The banks in Dominica are not functional!
TalRussell 6 years, 6 months ago
Comrade DDK, be assured that the Dominican's 'Pay For Instant Dominican Citizenship Program' has not missed a single deposit from finding its way into the Dominican government's bank account. In fact, the 'Pay For Instant Dominican Citizenship Program' was ramped up since the hurricane. You go figure how quickly they can still process new citizenship applications,hey? Wanna bet the Dominican PM and his cabinet colleagues, have not missed a single paycheque?
Baha10 6 years, 6 months ago
The cost to Charter that Plane is more than the Donation, go figure!
Reality_Check 6 years, 6 months ago
Simply unbelievable! Instead of pressing for the web shop legislation to be repealed in its entirety and then enforcing the complete shut down of all web shops, this yapping white-haired little poodle (D'Aguilar) simply told KP Turnquest that he should be imposing much more significant annual taxes and fees on the very impressive annual profits of the web shops. This is tantamount to saying that our government should be quite content to effectively participate as a significant profit-sharing partner in the corrupt money laundering and other racketeering activities of the numbers' bosses. Such an absurd stance by the Minnis-led FNM government only serves to anger regulators of the global financial system who cannot understand why our newly elected (and supposedly uncorrupt) government refuses to shut down the web shops and other related organizations owned and operated by the numbers' bosses that the developed countries regard as criminal enterprises. The IMF, FATF, OECD, etc. are all now telecasting loud warnings that our country will face increased "de-rerisking" by the highly regulated global financial community, and a possible cutting-off from the global financial system, if we do not shut down the money laundering and other illegal activities of the numbers' bosses. It seems abundantly clear now that Minnis and his cabinet ministers have allowed themselves to be "bought" by criminal thugs like Sebas Bastian! This would make our new government no different than the last one when it comes to corruption and who is really calling the shots in our country today. Has Minnis really allowed himself to become nothing but a puppet PM beholden to Sebas Bastian?!!
DDK 6 years, 6 months ago
Well said! This IS outrageous!
TalRussell 6 years, 6 months ago
Comrades! Minister Dionisio is forgetting that the majority referendum voters declared loudly that to 'regularise' the numbers business would be to place too much concentration of money and political influencing power into the hands of a small group numbers men's.
This red thing of also ignoring the numbers sleeping dog is going come back and do to the Minnis administration, exactly what it did to the Christie administration. Your asses is FIRED!!
ohdrap4 6 years, 6 months ago
tax the earnings too, in the US the lottery winners pay the highest rate.
charge a stamp tax on the gambling houses and tax the earnings to the winners at 15%.
charge a fee to transfer money to someone elses, account, like ten dollars.
DDK 6 years, 6 months ago
No tax. Close them down. Open a tightly controlled (if possible in this country) national lottery.
John 6 years, 6 months ago
So is there also going to be an across the board increase in casino taxes as well. Surely what is good for the goose is good fore the gander. And a lot of the so called regulators are themselves gangsters who can bankrupt one country in favor of another.
Reality_Check 6 years, 6 months ago
We know who butters your bread and fully expect you to sing for your supper!
sheeprunner12 6 years, 6 months ago
The FNM Cabinet has a delicate game to play ......... the Numbers Mafia bankrolled many of them in the recent election ........ Say it aint so
DDK 6 years, 6 months ago
We have been waiting for them to say it ain't so.............. If it ain't so, why can they not say it? They have to know it will come out in the laundry!
Well_mudda_take_sic 6 years, 6 months ago
This comment was removed by the site staff for violation of the usage agreement.
DDK 6 years, 6 months ago
Might I just add Health to #3?
Well_mudda_take_sic 6 years, 6 months ago
This comment was removed by the site staff for violation of the usage agreement.
DDK 6 years, 6 months ago
I wonder how many who voted in the FNM would have voted for them if they knew the party had taken money from the numbers gangsters? That would surely be a great breach of trust.
Well_mudda_take_sic 6 years, 6 months ago
Minnis himself would never have been elected had this been known. The majority of the good people of Killarney, in common with the vast majority of Bahamians, feel a deep sense of betrayal by Minnis. He had better soon address this most sensitive issue in a forthright way by doing the only right thing that can be done in the circumstances, i.e. repeal the web shop legislation in its entirety and shut down the web shops!
sheeprunner12 6 years, 6 months ago
Well ....... those like DDK who have their (FNM) inside information to spill the beans
Baha10 6 years, 6 months ago
... and our "New" Ms. Bahamas is ... Ms. ISLAND LUCK!
Reality_Check 6 years, 6 months ago
This comment was removed by the site staff for violation of the usage agreement.
BMW 6 years, 6 months ago
Shut the number houses down, start a national lottery and watch " the eye popping profits" go to the treasury. Seems common sense aint so common.
John 6 years, 6 months ago
Can you honestly run a national lottery after what corruption and tiefin was revealed about the former (PLP) government? Even hurricane relief money goes missing. YOU must be mad!
Reality_Check 6 years, 6 months ago
It figures that you would be worried about the government stealing money that you would prefer end up in the pockets of the numbers' bosses. Yes indeed, we certainly know who is buttering your bread!
truetruebahamian 6 years, 6 months ago
Triple their taxes and close the web shops down. They are the bastard babies of illegitimate enterprises in the first place and re happy to squeeze the last cent out of the people. If there is to be anything at all - a lottery would be the best and sanest solution - as long as the money made does not go into the consolodated fund.
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