Showing posts with label gambling business Bahamas. Show all posts
Showing posts with label gambling business Bahamas. Show all posts

Sunday, July 25, 2010

The Bahamas is not the only nation concerned about gambling

The pros and cons of gambling
tribune242 editorial:


A SEVERE crackdown by Chinese police on football betting during the World Cup match after an online gambling ring -- called the world's largest-- was broken up in Hong Kong in June, shows that the Bahamas is not the only nation concerned about gambling.

According to the Xinhua news agency more than $100 million Hong Kong dollars was confiscated in June and 70 people arrested in betting on the World Cup.

In July as the police crackdown intensified on organised criminal gangs more than 5,000 people were arrested.

Although the East is noted -- at least in the movies -- for its gambling dens, betting on football is illegal in Malaysia, Singapore and Thailand because of its ties to the criminal underworld.

In a Financial Times article Jean-Michel Louboutin, Interpol's executive director of police services is quoted as saying: "As well as having clear connections to organised crime gangs, illegal soccer gambling is linked with corruption, money laundering and prostitution, and our operation will have a significant long-term impact on these serious offences as well."

In its July 10-16 edition, The Economist of London had an interesting feature on gambling and the pros and cons for legalising it.

It pointed out that trying to ban online gambling is doomed to failure because anyone with a computer can participate.

It concludes that although many dislike the idea of governments encouraging its citizens to gamble, a fine line can be drawn between encouragement and regulation. "Regulating something is not the same as encouraging it," the Economist argued.

"Better to treat gambling the same way as smoking: legalise it but make the casinos display the often-dismal odds of success (one in 176 million, if you hope to win America's richest lottery) in the same way the cigarette packets warn you about cancer.

"That would favour games of skill over the mindlessness of slot machines. People always will bet.

"Better that they do so in a legal market -- and know the form."

That was one opinion. We recall, while studying law in London, gambling was being discussed among the legal fraternity at the time.

A strong argument then was that it was best to bring it in from the cold and regulate it so that gambling debts could be settled in the courts rather than by criminals with knives drawn down a dark alley.

Those against gambling offered much the same argument as Archbishop Pinder and other churchmen in an attempt to protect citizens against their own destructive human weaknesses.

While the Catholic Church, said the Archbishop, recognizes that "gambling is not inherently evil there is the tendency of human nature to go to excess and to extremes.

"Thus what may be harmless in the beginning can, without proper restraints become quite harmful later on. The wisdom of the law as it now stands seems to understand this reality."

Many other countries in order to protect their citizens, either ban them from the casinos, or if allowed, charge them a heavy entrance fee.

A foreigner pays no fees. Mainland China, for example, keeps its casinos off island on Macau, where the visitor throws the dice, but access by its own citizens is strictly limited. A successful lottery is the only form of gambling on China's mainland.

Singapore welcomes the visitor to its casinos, but charges its own citizens $72. Many Asian governments remain wary of gambling and either ban its citizens, or make it difficult for them to have a little "flutter."

However, as governments need to raise taxes, the debate continues.

The Economist article is well worth reading, particularly as this is a debate that Bahamians will be entering into after the 2012 election.

It gives a balanced view of both sides of the argument.

July 22, 2010

tribune242 editorial

Thursday, June 10, 2010

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