To gamble or not to gamble: ...as it now stands, gambling, although illegal for Bahamians, is now so prevalent ...and has been for so many years, that to let it flourish while continuing the debate whether it should be outlawed ...is making a fool of the law

The Devil Has Had It Too Long, Turn It To Good

 Tribune242 Editorial


TO GAMBLE or not to gamble — that is the question. In the Bahamas today it is a question that has already been answered by a large number of Bahamians without need of a referendum.

A referendum has only become necessary because of government’s desire to avoid a clash with the churches, particularly the strong Baptist vote, which itself is now divided. Government wants the bitter chalice of who decides on legalisation to pass to the “Voice of the People” – hence the referendum.

As Minister Lavern Turner, whose letter is published on this page today, points out gambling has “grown from the number man to the web shop.” Now that people can gamble on the web, gambling cannot be stopped, he wrote.

“The permission was already given,” he said, “when the web shop obtained a licence, paid National Insurance and hired workers. The people already have the legal right and it should not be taken from them.”

We also agree with the reverend gentleman that now is not the time to open casino doors to Bahamians. The minister pointed out the seriousness of the economic downturn and the hundreds of Bahamians without jobs – “light bills, water bills, rent, mortgages, school uniforms and fees, education, food, car upkeep and other more important responsibilities take priority over casino gambling. Entertainment at that level can wait!” he said.

It is true, gambling does reduce the moral fibre of a community by making people believe that by the throw of the dice they can get something for nothing; it can destroy families, and turn a pathological gambler into a destitute human wreck. A gambler never learns that the odds are stacked in favour of the house, never for him. In the end he is the loser.

The Tribune was against the introduction of betting at Hobby Horse Hall many years ago because of the harm it did to the family unit. It was the late Nurse Alice Hill-Jones, who came to The Tribune to report that whenever Hobby Horse Hall was in season and betting was in full swing, babies arriving at the government clinics were undernourished — their milk money was going to the race track. The fathers were spending their meagre wages every Friday afternoon betting on the trifecta.

Today the government has no choice but to legalise gambling. The people have already spoken. Already the numbers and the web shops have defied the police. No sooner are they closed than they are open again. If gambling is denied, then everything has to close. And the gambling houses have shown they plan to go nowhere without a fight.

It was the same story with alcohol. Prohibition became so dangerous that in the end alcohol had to be legalised. This did not mean that alcohol was beneficial, in many ways its abuse does more harm to the human body than many of the drugs that are still illegal. However, alcohol is now within the law. Gone are the smuggling days when much of the alcohol was contaminated, leaving people, if not dead, then blind.

The religious can find the answer to their quandary in the soliloquy of the Grand Inquisitor in Dostoevsky’s Brothers Karamazov where the pros and cons of God’s gift of free will is argued. Many condemned such a gift believing it too great a responsibility for weak man. Others saw it as a great gift enabling each human being to accept or reject morality, and to individually decide whether to follow good or evil. God’s gift of free will was to the individual, not to his pastor. The most that a pastor can do is to advise his flock and try to lead them on what he considers the right path — even going after the one who strays. But that is the limit of his responsibility. The final exercise of free will is for the individual. If the individual strays — as suggests pastor Turner in his letter – the “responsibility to deliver them belongs to the Holy Spirit, so take the load off your head, their blood is not on your hands…” A good bit of advice. Each person is judged individually by the extent of his knowledge and the exercise of his own free will in making a final decision based on that knowledge.

Ministers who are against gambling are only responsible for their own congregations — and only so far as they can guide the free will of their members. However, they have no right to even consider trying to impose their beliefs and will on a nation. Each man has his own beliefs.

Of course, there will be laws and if an individual’s free will leads him down the wrong path, then the law will be there to punish him.

But as it now stands, gambling, although illegal, is now so prevalent and has been for so many years, that to let it flourish while continuing the debate whether it should be outlawed is making a fool of the law.

Either make it legal and control it, or declare it illegal and shut it down.

In our opinion the added expense of a referendum is not necessary — it’s just an easy way out enabling government to avoid the wrath of religious ministers and the loss of the Baptist vote at election time.

Those who believe that gambling is evil and against their religious beliefs won’t gamble, and those who see nothing wrong with it will continue as they are doing now. The only difference is that the government will tax their foolishness.

As one religious minister once said: “Give me the money so that I can put it to good use — it’s been in the devil’s hands too long!”

August 07, 2012

Tribune242 

Caribbean Blog International

Bishop Neil Ellis urges members of the Christian community to “stand firmly” in opposition to the Christie administration’s planned referendum on illegal gambling and a national lottery

Bishop Ellis: Christians must stand firm against legalized gambling

Royston Jones Jr.
Guardian Staff Reporter
royston@nasguard.com

Bishop Neil Ellis of Mount Tabor Full Gospel Baptist Church is urging members of the Christian community to “stand firmly” in opposition to the Christie administration’s planned referendum on illegal gambling and a national lottery, so that “there would not be blood on our hands” if it is ultimately passed.

Ellis was one of several pastors who commented on the referendum promised in the Speech from the Throne read by Governor General Sir Arthur Foulkes at the opening of Parliament on Wednesday.

In its Charter for Governance, the Progressive Liberal Party (PLP) committed to holding that referendum within its first 100 days in office.

Ellis told The Nassau Guardian that while the country might experience some financial gain as a result of regularizing gambling, Bahamian families are likely to suffer in the long run.

He said that in the past, many Bahamian families “lost everything” due to gambling.

He was referring to the Hobby Horse Hall, a horse racing venue where betting was legal decades ago.

“If we vote in favor we may benefit with the country gaining some type of revenue from it but we have people like those a while ago who lose everything and still have to come back to social services and drain the government,” said Ellis.

“You’d effectively be taking revenue in the front door and its goes out the back door. It’s going to be really important for the church community to lay its agenda clearly and concisely on the table so that if this is passed there would not be blood on our hands. But the government in its wisdom wants to bring some resolution to it and I applaud them for it.”

Bishop Reno V. Smith, pastor of Mt. Gilead Union Baptist Church in Eight Mile Rock, Grand Bahama, told The Guardian that while he was pleased the Christie administration thought it “proper and fitting” to put the issue to the Bahamian people, if the outcome was favorable, players of “games of chance” should not be permitted to be a further burden on the government.

“Should those people lose their houses, their homes, their incomes etc., I don’t think they should be allowed as gamblers to go to the Department of Social Services to be sustained by people like me and others who pay taxes,” Smith said.

“If the people decide that they wish to gamble, then that’s up to them. However, I would like to see all gamblers – players of games [of] chance – to be registered so that they would not be a further burden to the taxpayers of this country.”

The issue has been a prickly one for successive governments, as members of the Christian community have strongly objected to any hint of legalizing gambling for Bahamians.

Christian Council Treasurer Bishop Gregory Minnis of New Jerusalem Kingdom Ministries said that although he believes gambling is wrong from a biblical standpoint, he understood why so many people turned to the industry as a means of “pulling in a dollar” in light of the current state of the economy and unemployment.

“We (Christian Council) are strongly against gambling, but if the people speak and they desire for it then we as the church will have to say to our people to be mindful of how you accomplish your goals now, and how you accomplished all that you have before gambling came in,” Minnis said.

He also said that a national lottery would promote organized crime if it were not implemented properly by the government, and could further criminal activity in the country.

He added that the Christian community would be called upon to make its position “resoundingly” clear, and said he believes more people are opposed to legalizing gambling than are those who support it.

May 25, 2012

thenassauguardian

Caribbean Blog International

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

Bahamas Blog International

The Bahamas needs tax and spending reform

By Youri Kemp:


I was listening to the news just recently, where Prime Minister Hubert Ingraham, who also is the Minister of Finance, said something to the effect that he would not lean against anyone broaching the issue of taxing the illegal numbers racket in The Bahamas, by virtue of taxing the internet cafés that are reportedly "fronts" for internet gambling businesses.

However, I'm not quite sure how easy it is to tax the numbers racket through internet cafés in The Bahamas. For starters, you have to have them recognize that they are, in fact, running illegal gambling out of internet cafés -- considering that the authorities have not been able to produce solid evidence in order to prosecute anyone allegedly gambling in these establishments.

Secondly, what about the internet cafés that are legitimate internet cafés? Can't tax them... can you? Lastly, if I am running an illegal gambling racket through an internet café, then why would I want to pay taxes to the government for something I have been getting away with for so long?

Even if you put the work out for companies to bid on a national lottery, you still would be left at square one with the internet cafés that run the numbers racket and their subsequent prosecution.

It is no easy task and good luck to the persons tasked with sorting it out.

More importantly, however, if we have come to a point where we are speaking in open forum about taxing the numbers racket, seriously, it signifies that the government feels that The Bahamas is at a juncture where it needs meaningful tax reform for government revenue; the government, clearly, is not generating enough internal revenue in order to meet its obligations now; and that the prospects of meeting the debt service, is very bleak with the current system of taxation.

To be very blunt: the government has to tax. However, the term "tax reform” isn't necessarily supposed to have a negative connotation or stand for a pejorative slight of hand.

The word "tax", does evoke personal sentiments for obvious reasons and the word "reform" -- especially used by politicians -- is a code word of sorts for the refocusing of entitlements and simultaneously as a buzz word for business persons, which signifies more and unnecessary regulation. Which to business people means more time away from their business and more time dealing with a governmental agency with mentally challenged employees.

To be fair, government employees aren't mentally challenged -- although some who look like they shouldn't be makes one wonder -- and everyone doesn't understand what reform signifies -- either which way -- and no one wants to pay more taxes.

The truth is, however, The Bahamas government is in debt to over 40 percent of GDP -- with a widening deficit. Another clear fact is that The Bahamas doesn't have any streams of government revenue, other than from import taxes (where it gets over 50% of its revenue), National Insurance contributions, revenue from public corporations and government agencies and also through forms of public service charges and real estate; i.e., vehicle registration and real property tax.

Conversely, the Bahamas's tax to GDP ratio is about 18 percent. Which isn't that bad, considering Barbados, Jamaica and Trinidad is at 32, 27 and 38 percent respectively. But, The Bahamas isn't just like any other Caribbean country -- we do things a little different.

Firstly, we don't produce many agricultural products for mass consumption in The Bahamas, neither do we have a large export sector in terms of people involved in exports, away from the concentrated profits some firms make.

Another concern that compounds the lack of efficient and beneficial dynamism in the market place as it relates to an optimal and targeted tax mix is the reliance of import tariffs for government revenue.

While The Bahamas does not produce over 80% of what it consumes, and with the tax system as basic as it is, it has to tax imports heavily. As a consequence, this puts consumers and more importantly, low income consumer, at a disadvantage as the tax burden is disproportionate to what they spend on taxes in relation to what larger corporations and high income earners pay. For example, a 50 percent flat tax on all consumer goods means more to someone who makes $20k per year than someone who makes $100k per year and a flat rate for business licenses, means more to the small business person than it does for a large corporation.

Moreover, large industries such as banking and shipping, are virtually untouched as it relates to taxation -- no capital gains or corporate tax. Even the export of fisheries products is untouched as they relate to export taxes.

Some may argue that these low taxes are the reason why these industries are so dynamic and successful. However, there is more to a successful enterprise than just low taxation -- location, barriers to entry and diversification, comparative and competitive advantages, come first and foremost for a successful enterprise.

More importantly, inequitable or no taxation, can be more destructive than high taxation. For political reasons, the need to keep such high-end entitlements incentivises corruption. Also, with regard to adequate funding for social programmes, people wishing to engage in such specialised enterprises face high entry costs that the consumer and subsequently the state ultimately must pay for.

Those additional barriers,decrease the tax base as persons begin to spend more of their disposable income in an effort to obtain the training and skills necessary to compete in and for what the marketplace offers, in addition to the high cost of private investment into such specialised enterprises.

What makes it worse is if the perception of risk through sacrifice made by individuals does not facilitate for the full cycle completion on endeavours. Or, the high cost for entry is private market based (cost for capital investment and cost for private education), where the government does not have a progressive, optimal tax mix and that tax mix model is not synergised to assist with the equitable development of the industry at all levels.

When such market failures occur, the government must spend on socio-economic policies that develop infrastructure and human capital.

Through all of this, I must state that the issues are more complex than just taxation. We need more bang for the buck and a re-engineering of our socio-economic programmes, in addition to doing more with respect to meaningful tax and spend policies that encourage economic growth, as well as lowering the private and public entry barriers to enterprise and skills training.

Before we begin the discussions on what forms of taxation we should have -- VAT, excise taxes, etc... -- or what types of spending we must endeavour, we must begin to frame the minds of citizens and add to the conversation of what the economic importance of tax and spending reform is and what that means to us all, as I hoped this article addressed.

April 19, 2010

caribbeannetnews

Bahamas Blog International

Another former senior FNM favours legalised gambling

By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net:


ANOTHER former senior FNM has come out in favour of the legalisation of gambling, amid speculation that the Government may be preparing to liberalise gaming laws in the Bahamas in the coming legislative session.

Former Deputy Prime Minister Frank Watson, who was recently honoured by the government when the new road bordering the Albany resort was named after him, said police are "wasting their time and resources running after" those who conduct and participate in lotteries in the Bahamas and it is "time for us to face the music."

"We waste the police's precious time trying to lock up and seemingly never to get a conviction so why not legalise it? We need to get it behind us. If I don't want to gamble I don't have to gamble no one is forcing you (if it is legalised)."

"The reality is there is a block of churches that oppose gaming being legalised, but the police can do nothing about it as it goes on illegally.

"Police continue to waste time running behind numbers people and all they're doing is taking the focus off crime in my view," said the former parliamentarian and current chairman of the Nassau Airport Development Company.

His comments come as speculation remains high that the Government, which has been urged by numerous stakeholders to reform gaming laws in the Bahamas, may announce in the Speech from the Throne, which will outline the Government's next legislative agenda upon the opening of the new session of Parliament on April 14, that it intends to liberalise gambling laws in The Bahamas.

Such speculation has been bolstered by reports that the question of whether gambling laws should be reformed was recently put to the FNM Council for a vote by party leader and Prime Minister Hubert Ingraham.

Speaking with The Tribune, Mr Watson said he was not sure if this did indeed happen but "understands that this may have been so."

Meanwhile, when asked yesterday if the council did vote on the issue of liberalisation, FNM party chairman Carl Bethel admitted that gambling law reform is indeed "a question that's being discussed internally in the Free National Movement."

However, Bahamas Hotel Association President Robert Sands, who was part of the group that presented a proposal to the Government last year calling for a reform of the Bahamas' gaming laws -- in his group's case, the proposal specifically related to who can gamble in casinos in The Bahamas and what kinds of games are permitted in those tourist establishments, rather than the legalisation of numbers houses -- told Tribune Business last week that he had not heard anything officially on the matter. FML CEO Craig Flowers said the same.

Mr Watson told The Tribune he feels that other than those churches who oppose gambling on religious grounds, most Bahamians are either "ambivalent about or participate in" illegal gambling.

He added that if it were legalised, expanded gambling could be a major revenue-raising measure for the Government.

"The money raised could be used to implement programmes dealing with anti-social behaviour or to put on after school classes or day care. Parents are having difficulty managing their jobs and their children," he suggested.

Nonetheless, the ex-parliamentarian admitted the move would be one that a government would have to "think through carefully and be prepared to take the consequences" of.

Former FNM Cabinet Minister Theresa Moxey came under fire several weeks ago after she described police raids on numbers houses as equivalent to officers "terrorising peaceful citizens." She suggested the law that allows non-Bahamians and non-Bahamian residents to gamble while denying those categories of people the same right is "discriminatory."

A Group of Evangelical Pastors -- Cedric Moss, Allan Lee, Lyall Bethel and Alfred Stuart -- called Mrs Moxey-Ingraham's comments "irresponsible" and urged the Government to strengthen anti-gambling laws and their enforcement to "rid our land of these illegal numbers houses."

April 06, 2010