Sebas Bastian, CEO at Island Luck “web shop” applauds the Progressive Liberal Party (PLP) government for its pledge to address the gambling industry ...arguing that regulation will add revenue to the public treasury

Island Luck calls for end to ‘insane’ contradiction

By Scieska Adderley
Guardian Business Reporter
scieska@nasguard.com

The head of a major “web shop” is applauding the Progressive Liberal Party (PLP) for its pledge to address the gambling industry, arguing that regulation will add revenue to the public treasury.

Sebas Bastian, CEO at Island Luck, said the unregulated gambling industry already generates millions for the local economy each year.  Island Luck, he added, pays out million for salaries, rentals and to the National Insurance Board (NIB) for contributions, contributing $20 million to the local economy.

Island Luck and its more than 3,000 employees already contribute to The Bahamas, and to deem the operation illegal is “insane”, according to Bastian.

“The industry cannot continue to only be recognized as legal when we give out to the community, pay taxes, business license fees, national insurance and [when we are] taken to the labor board.  Yet, we are deemed as illegal on the other hand?  To me, that’s insane,” he said.

In last week’s Speech from the Throne, it was revealed that the PLP government would hold a referendum for the Bahamian people to decide whether a national lottery should be instituted and whether web shop type gaming should be decriminalized.

The issue is controversial in The Bahamas.  Some argue that if properly regulated, legal gaming could be a driver for the economy.  However, the Christian community stands against any move to legalize any form of gambling for Bahamians and legal residents.  Visitors can gamble legally in The Bahamas.

Winston Rolle, CEO of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), told Guardian Business that if the national lottery and/or web shops are properly regulated, a higher level of tax should be paid to the public treasury by the sector.

“In regulating it, persons should also be looking to ensure that funds generated from it are properly allocated and channeled into specific areas where there are significant economic voids,” Rolle explained.

“My concern would be over the proper structure and regulation so that we are setting up a regime that provides adequate tax returns and that whatever funds that are raised will be utilized to the benefit of the Bahamian people.”

Rolle said that at this point, Bahamians are kidding themselves viewing gambling as being illegal.

Another leader in the web shop business was contacted by Guardian Business on the issue of legalizing the sector.  However, the source declined to comment at this time, saying he will meet with the prime minister shortly on the issue.

For Bastian’s part, he said there should be a recognition that the industry has a positive impact on Bahamians.

“For example, when the Atlantis resort decided to downsize its staff, we at Island Luck employed most of those displaced workers.  Currently, we have more than 3,000 people employed,” he said.

“We payout more than $6 million in rental property, $4 million in national insurance contributions per annum and more than $10 million is spent on utilities like the Bahamas Electricity Corporation (BEC) and Cable Bahamas, along with supplies like paper.  The funds generated are spent locally.”

May 30, 2012

thenassauguardian

Caribbean Blog International

...disappointed by the Government's decision not to legalise gambling for Bahamians

'Good has come' from $6m Numbers Houses
By CHESTER ROBARDS
Business Reporter
crobards@tribunemedia.net:


Numbers Houses employ up to 3,000 Bahamians directly with an annual payroll of $6 million, and make $1.2 million in per annum charitable donations, a senior executive told Tribune Business yesterday, adding that the sector could become an $80-$100 million industry if legalised.

Making his case for legalising local gambling or playing numbers, Dicrius Ramsey, general manager of Island Luck, said numbers houses have come to employ directly 3,000 individuals - and indirectly 2,000 - a workforce just 3,000 less than the Bahamas' largest private sector employer, Atlantis.

And with government funding slashed to many community organisations, the Numbers Houses have taken over the role and inject as much as $100,000 per month into those organizations.

Mr Ramsey said, though, that many organisations are reluctant to receive their money publicly, as they are afraid of what some in the community might say about the origin of the funds.

"Some people take it on top of the table, some people take it under the table," he said.

Island Luck recently donated to Doris Johnson High School some $9,000 worth of new computers - the first in the school's history, according to Mr Ramsey. He has also personally made $5,000 donations to the Bilney Lane Children's Home and to the Unity Home.

Mr Ramsey argued that the Government has missed out on a substantial revenue source by choosing to not legalise gambling for Bahamians. Yet he added that shutting down the industry would mean a spike in unemployment and severe a revenue stream for countless entities.

He said the four leading numbers houses spend up to $50,000 per month on cable TV bills, $90,000 on electricity costs, and $75,000 on National Insurance Board (NIB) contributions, while creating indirect employment for the upkeep of their establishments.

Mr Ramsey said the four large number houses pay collectively more than $100,000 in rent for their locations, and carry a $500,000 per month payroll.

"You are talking about half a million in payroll alone and 3,000 people employed," he said. "We want serious consideration to call it a local gaming industry, and we are looking for some regulations to be put in place, so it is recognised as a viable entity. I don't know who outside of government has a half-million payroll monthly."

And Mr Ramsey's figures do not take into account the many smaller number houses that dot the islands.

He said those in the industry were disappointed by the Government's decision not to legalise gambling for Bahamians. He called the law that prohibits the practice archaic, and compared the choice to spend disposable income on gambling to the choice to spend money on the purchase of alcoholic beverages.

He argued that gambling does not contribute to the decay of the Bahamas' moral and social fabric, but that alcohol consumption does.

"Nobody can say that the gaming industry is wreaking havoc on the moral and social fabric," said Mr Ramsey. "Our position is that the local gaming industry... who does it really offend?

"We want people to understand this is a business and it is growing, and we want it to be here for a long time with a seal of approval."

Arguments have arisen from both sides of the fence, with some claiming legalised gambling would 'breed poverty', while others claim the extra tax revenues could be the answer to the Government's high debt.

"Good has come from these web shops," said Mr Ramsey. "They are contributing to the cultural development, and as profits continue to exist, I am quite sure the local community will see a lot more giving back because everyone will give back once it is profitable."

July 06, 2010

tribune242

Bahamas Blog International

The revelation that the Bahamas government would not legalize gambling for Bahamians was like a slap in the face to some number house bosses

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

Bahamas Blog International

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

Bahamas Blog International