Numbers houses 'losing business'
By KRYSTEL ROLLE ~ Guardian Staff Reporter ~ krystel@nasguard.com:
The revelation that the government would not legalize gambling for Bahamians was like a slap in the face to some number house bosses, who claim the backlash that followed the government's decision has caused a decline in business and has forced them to make serious cutbacks.
One businessman, who claimed he was expressing views shared by Island Luck, FML and Asue Draw, which reportedly represent more than 70 percent of the local market, said after opening up their books to the government, they were shocked when it was revealed that the law would remain unchanged.
The businessman, who wished not to be named due to reported pressure from the police and financial institutions, said if someone had asked the number bosses two weeks ago whether their businesses would have been legalized, they would have said with absolute certainty that they would be.
While he said they respect the government's decision to leave the law as it is, they want to know what will happen next.
The comments came two weeks after the Cabinet Office announced that the government will not proceed with the legalization of gambling. The government has instead concluded that a referendum should be held after the next general election so Bahamians can have the final say on the divisive issue.
"Now what?" asked the group's spokesman, who added that since the government's declaration, police have been coming around their businesses more frequently and "harassing" their customers.
He said sometimes police cars are parked in front of their businesses, which has led to a drastic slowdown in business.
Things have gotten so bad, 10 to 20 percent of the staff working at the various sites have or will be laid off, the businessman said.
The number boss told The Nassau Guardian that representatives from the government and the Ministry of Finance approached them months ago seeking to get information to assist with the legalization of gambling.
"When the government made the announcement (that they were considering legalizing gambling) we opened our doors and we invited them in," he said.
"We provided them with all the necessary information that they needed. We wanted to support the government's decision, [we] wanted to help the country in terms of the deficit and we know the money could go a long way."
The businessman claimed that the bosses were told that by June 30 the necessary legislation would be passed in Parliament for the legalization of some form of gambling.
"We were all under the impression that it was going to be legalized," he said. "You don't have the Ministry of Finance walk through the number man's door if this is not something that the government has in mind. They contacted us," he stressed. "They met with us individually."
He said when they found out that the law would remain unchanged "it was a blow to everyone".
"We really didn't expect it. We were hoping that just like how they called us in the beginning, they would have called us back. We were accommodating. We had to hear about it in the paper. We don't know where to go from here. We want to know what is the government's position for the future. We need to know, the public needs to know because for every two people against it three people [are] for it."
The businessman said while he was not looking forward to his business being taxed, he was not against it and he was relieved that his business would be legitimate.
The prime minister has said the government would have collected $30 million to $40 million annually in revenue from the gambling business.
However, the businessman said based on the current market it would have been more like $15 million.
"I would love to see our $15 million a year build a school today and a hospital tomorrow," he said, adding that the Florida Lottery has donated millions of dollars toward education.
"We don't mind it being legalized," he continued. "It's a gray area that has not been enforced. We don't like the idea of being illegal businessmen. So the tax was never an issue. It's not a good feeling walking in banks and other financial institutions and being known as some number man, or getting the headache of getting kicked out of banks. We're mostly just guilty by association... because you're known as a number man, you're frowned upon and they just don't want to do business with you."
He said many Bahamians have pre-conceived notions that the gambling business leads to the bankruptcy of many people. However, he said the majority of people spend about $3 to $7 on a ticket to gamble.
"The average persons does not spend excessively on numbers. It's just the volume. You give a small investment for a big return. These people are putting in $1 and getting $900," he said.
Asked whether he considered the numbers business to be illegal, the businessman said, "We consider it to be illegal in a sense. The walk-in part of business could fall into the illegal category but the Internet is free for all."
Asked what he would say to the government, if given the opportunity, he said, "We're not complaining, we're not crying but it's just reality. We need to know where do we go from here."
June 9, 2010
thenassauguardian
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Showing posts with label Asue Draw Bahamas. Show all posts
Showing posts with label Asue Draw Bahamas. Show all posts
Thursday, June 10, 2010
Wednesday, April 21, 2010
Government to issue four numbers licences
Govt to issue four numbers licences
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net:
LOCAL number operators will reportedly be asked to put up a $5 million cash bond before they are issued with one of what is reported to be only four issued licences.
As the government is currently mulling over whether or not to legalize the local lottery business, reports have started to surface as to how regulators would go about issuing licences for an industry that is already flooded with large and small scale operators.
Currently, there exists four main local number houses - FML, Asue Draw, NWS and Island Luck - that make up the majority of sales in New Providence and in most Family Islands, with eight smaller number operators filling in the gaps. Of the four larger entities, FML remains by far the most dominate force on which other, smaller, number houses "bank" their daily tickets as insurance against any possible "big hit" for a given day.
With the daily payouts having dropped in the past week from $900 to $800 for the dollar played during the Early Miami, Early Chicago, and Early New York lottos, local number operators have expressed their fears that the government could be "unfairly" manipulating the requirements to "price out" the majority of the current operators.
Currently it is being rumoured that each number operator would be required, along with the $5 million bond, to pay out to the government a certain percentage of their annual rake as a "fee", along with the actual cost of the licence which is said to be anywhere in the "six figure" range.
Also, it is being said that in their initial discussions on the matter it has already been proposed to limit the possibility of licences to "three or four", instead of a full-scale opening of the current market.
This report, however, is being frowned upon by many "smaller" number operators who fear that these requirements are being "hiked out of proportion" to limit access to the market, or in fact even open it up for "other more politically connected persons" to enter the field.
Speaking with The Tribune yesterday, one small number operator said that he fears he will not be able to stay in the business as there is no way he could come up with $5 million.
"That price is ridiculous. I've been in the business for a little while, and I want to remain in the business. Right now I have 32 people employed and for me to come up with that big bond, I could never make that.
"I don't feel that they should only give certain people a licence and kick everybody else out. If the government wants us to contribute $10,000 for every six months from every number house, that should be enough. Or whatever fee they want to impose, but to knock everybody out and only give a certain set a licence, that isn't fair. I don't see how the government could do that," he said.
While the government through Prime Minister Hubert Ingraham has voiced its support for discussions on the matter of legalizing the industry, there has been little to no further discussion since.
In fact, when The Tribune attempted to reach a number of officials at the Ministry of Finance on the topic, we were informed that "no one" at their offices would be authorized to speak on "that issue" at this time.
April 21, 2010
tribune242
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net:
LOCAL number operators will reportedly be asked to put up a $5 million cash bond before they are issued with one of what is reported to be only four issued licences.
As the government is currently mulling over whether or not to legalize the local lottery business, reports have started to surface as to how regulators would go about issuing licences for an industry that is already flooded with large and small scale operators.
Currently, there exists four main local number houses - FML, Asue Draw, NWS and Island Luck - that make up the majority of sales in New Providence and in most Family Islands, with eight smaller number operators filling in the gaps. Of the four larger entities, FML remains by far the most dominate force on which other, smaller, number houses "bank" their daily tickets as insurance against any possible "big hit" for a given day.
With the daily payouts having dropped in the past week from $900 to $800 for the dollar played during the Early Miami, Early Chicago, and Early New York lottos, local number operators have expressed their fears that the government could be "unfairly" manipulating the requirements to "price out" the majority of the current operators.
Currently it is being rumoured that each number operator would be required, along with the $5 million bond, to pay out to the government a certain percentage of their annual rake as a "fee", along with the actual cost of the licence which is said to be anywhere in the "six figure" range.
Also, it is being said that in their initial discussions on the matter it has already been proposed to limit the possibility of licences to "three or four", instead of a full-scale opening of the current market.
This report, however, is being frowned upon by many "smaller" number operators who fear that these requirements are being "hiked out of proportion" to limit access to the market, or in fact even open it up for "other more politically connected persons" to enter the field.
Speaking with The Tribune yesterday, one small number operator said that he fears he will not be able to stay in the business as there is no way he could come up with $5 million.
"That price is ridiculous. I've been in the business for a little while, and I want to remain in the business. Right now I have 32 people employed and for me to come up with that big bond, I could never make that.
"I don't feel that they should only give certain people a licence and kick everybody else out. If the government wants us to contribute $10,000 for every six months from every number house, that should be enough. Or whatever fee they want to impose, but to knock everybody out and only give a certain set a licence, that isn't fair. I don't see how the government could do that," he said.
While the government through Prime Minister Hubert Ingraham has voiced its support for discussions on the matter of legalizing the industry, there has been little to no further discussion since.
In fact, when The Tribune attempted to reach a number of officials at the Ministry of Finance on the topic, we were informed that "no one" at their offices would be authorized to speak on "that issue" at this time.
April 21, 2010
tribune242
Subscribe to:
Posts (Atom)