Gambling Argument Flawed, Says Advocate
By Sasha Lightbourne
The Bahama Journal
A former Bahamas Gaming Reform (BGR) leader said that the gambling argument is flawed and may not benefit the government once a referendum is called.
In a press statement, Sidney Strachan argued that the church may have the “upper hand” on the gambling issue.
“Current government position of not considering casino and other forms of gaming ownership and participation for Bahamian residents falls far short of my expectation,” he said.
“The BGR has long proffered that Bahamians are treated as third class citizens in their own country. To say only current players will be allowed to be owners in the ‘Numbers game’ go against free enterprise in any democratic society. The Bahamas government, in my opinion, is being disingenuous in stating it proposes to regularise gaming in its current form.”
Mr. Strachan said many of the gaming representatives who are agitating for gambling to be regularised will experience many challenges operating in a legal environment based on current gaming regulations.
“Additionally, I envision many legal, copyright and regulatory challenges for the operators and The Bahamas Government if the ‘numbers’ business is legally allowed in its current form,” he added.
“In these instances, illegal operations were ordered to come to a complete stop and licences were granted to applicants based on their ability to obtain such licences. However, in some instances some large scale illegal gaming continued. Under the current online gaming ‘numbers’ system, I envision many obstacles to having this formally instituted in its present form. The platitudes from some of our leaders can only serve to placate number bosses while pulling the wool over Bahamian eyes once again.”
Addressing the efforts of the newly formed ‘We Care’ group, Mr. Strachan indicated that current gaming owners are making critical mistakes in lobbying on their own behalf and it will prove to be a “blight and a clear conflict of interest” on the government.
“It is in poor judgment and taste and even if we were to obtain this partial gaming victory it will be a negative reflection on how we conduct business in The Bahamas,” Mr. Strachan continued.
“Make no mistake; I support regularisation of ‘numbers’ and hold that the good vs. evil argument is ridiculous. However, anything short of opening up gaming completely to allow all Bahamian residents to be owners and players can never be a complete victory.”
Deputy Prime Minister Philip Davis told the Bahama Journal Wednesday that his party will stick to having the referendum before the end of the year and that Mr. Christie is expected to come to the public soon with all the details.
“The prime minister will be making an announcement very shortly,” Mr. Davis said at the time.
“Mr. Christie’s announcement could come as early as next week, I’m not sure, but I know that as of now he is ready to go to the nation to explain the way forward and to set the framework for the referendum to be held.”
There has been much public debate surrounding the legalisation of gambling over of the past few weeks, so much so, that the contentious issue has even divided the Bahamas Christian Council (BCC).
The BCC has said it is “diametrically opposed” to gambling, however, Mt. Calvary Baptist Pastor Dr. Philip McPhee believes there are benefits to be derived from its legalisation.
He recently held a discussion with several other pastors and the proprietors of numbers houses.
Despite his stance, the pastor says has never gambled and does not intend to change, even if the law changes.
The Mount Calvary Baptist pastor’s stance on gambling shocked many in the religious sector who questioned why a clergyman would support the illegal trade.
While shying away from getting involved in the back and forth, head of the local Roman Catholic Church Archbishop Patrick Pinder reiterated his church’s position yesterday, which is, that it does not support the legalisation of gambling.
July 20, 2012
The Bahama Journal
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 Bahamian casinos. Show all posts
Showing posts with label Bahamian casinos. Show all posts
Sunday, July 22, 2012
Thursday, April 15, 2010
James Smith: Ex- finance minister warns Government about allowing Bahamians to gamble in foreign-owned casinos
Ex-minister warns over gambling
By NEIL HARTNELL
Tribune Business Editor:
A former finance minister yesterday cautioned the Government about allowing Bahamians to gamble in foreign-owned casinos, warning that it could lead to increased foreign currency outflows and actually reduce net revenues collected as taxes by the Government.
While the Ingraham administration's plans to reform this nation's gaming regulations are currently not thought to include Bahamians being allowed to gamble in the casinos at Atlantis and Cable Beach, the ex-finance minister in the former PLP administration, James Smith, said the implications of any such decision needed to be considered carefully because they were likely to negatively impact the nation's foreign exchange reserves.
Mr Smith explained that under the current system, with only foreigners allowed to gamble in Bahamas-based casinos, the Government gained its revenues in foreign currency, while the foreign reserves benefited whenever the Central Bank purchased US dollar proceeds from gaming activity from the commercial banks during the course of its daily operations.
But if Bahamians were allowed to gamble in the foreign-owned casinos, their Bahamian dollars would need to be converted into foreign currency whenever their owners wanted to repatriate profits/revenues outside this nation.
Such conversion, Mr Smith said, would cause a drain on foreign currency reserves that might not be offset by gambling by the foreign patrons of Bahamian casinos, leading to a net outflow of foreign exchange. "The earnings from the casinos are always foreign exchange," Mr Smith told Tribune Business, "so we are not only assured of revenues to the Treasury, but revenues for the foreign reserves when the Central Bank buys from the banks."
If Bahamians were allowed to gamble in casinos, their gaming losses would need to be "offset against foreign currency earnings".
"Therefore, in assessing this, you have to marry it with these other concerns, and look at the foreign currency impact and whether it contributes to the growth of GDP, or the reverse," Mr Smith said.
"You have to buy foreign currency to go out, and who mitigates losses by the locals, which would otherwise be capital inflows. You could end up with a zero contribution, or a negative one."
Explaining that the Government could end up with less revenue than anticipated, as well as increased foreign currency outflows, if it made such a decision, Mr Smith described this as the "unexpected returns" and "unintended effects" if Bahamians were allowed to gamble in the foreign-owned casinos.
And with many US states altering their lotteries because they were not obtaining the returns anticipated, Mr Smith added: "Gambling does not create added value; it merely creates the transfer of wealth from one group to another."
With Bahamians seemingly having "a high propensity to gamble", Mr Smith also warned that legalising the sector and permitting casino gambling for locals could also result in a loss of import and customs duties.
"We might end up getting less revenue because consumption has gone down, and the gaming industry does not require imports, because its equipment is already here," he added."
April 14, 2010
tribune242
By NEIL HARTNELL
Tribune Business Editor:
A former finance minister yesterday cautioned the Government about allowing Bahamians to gamble in foreign-owned casinos, warning that it could lead to increased foreign currency outflows and actually reduce net revenues collected as taxes by the Government.
While the Ingraham administration's plans to reform this nation's gaming regulations are currently not thought to include Bahamians being allowed to gamble in the casinos at Atlantis and Cable Beach, the ex-finance minister in the former PLP administration, James Smith, said the implications of any such decision needed to be considered carefully because they were likely to negatively impact the nation's foreign exchange reserves.
Mr Smith explained that under the current system, with only foreigners allowed to gamble in Bahamas-based casinos, the Government gained its revenues in foreign currency, while the foreign reserves benefited whenever the Central Bank purchased US dollar proceeds from gaming activity from the commercial banks during the course of its daily operations.
But if Bahamians were allowed to gamble in the foreign-owned casinos, their Bahamian dollars would need to be converted into foreign currency whenever their owners wanted to repatriate profits/revenues outside this nation.
Such conversion, Mr Smith said, would cause a drain on foreign currency reserves that might not be offset by gambling by the foreign patrons of Bahamian casinos, leading to a net outflow of foreign exchange. "The earnings from the casinos are always foreign exchange," Mr Smith told Tribune Business, "so we are not only assured of revenues to the Treasury, but revenues for the foreign reserves when the Central Bank buys from the banks."
If Bahamians were allowed to gamble in casinos, their gaming losses would need to be "offset against foreign currency earnings".
"Therefore, in assessing this, you have to marry it with these other concerns, and look at the foreign currency impact and whether it contributes to the growth of GDP, or the reverse," Mr Smith said.
"You have to buy foreign currency to go out, and who mitigates losses by the locals, which would otherwise be capital inflows. You could end up with a zero contribution, or a negative one."
Explaining that the Government could end up with less revenue than anticipated, as well as increased foreign currency outflows, if it made such a decision, Mr Smith described this as the "unexpected returns" and "unintended effects" if Bahamians were allowed to gamble in the foreign-owned casinos.
And with many US states altering their lotteries because they were not obtaining the returns anticipated, Mr Smith added: "Gambling does not create added value; it merely creates the transfer of wealth from one group to another."
With Bahamians seemingly having "a high propensity to gamble", Mr Smith also warned that legalising the sector and permitting casino gambling for locals could also result in a loss of import and customs duties.
"We might end up getting less revenue because consumption has gone down, and the gaming industry does not require imports, because its equipment is already here," he added."
April 14, 2010
tribune242
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