The Rt. Rev'd Laish Zane Boyd on the subject of the proposed legalisation of the “numbers business” - (web shop activities) - in The Bahamas... and the upcoming gambling referendum

Anglican Minister Has Say On Gambling Legislation

A pastoral letter to the Anglican family and the wider community on the subject of the proposed legalisation of the “numbers business” in The Bahamas.

By REV LAISH BOYD, SR

DEAR brothers and sisters of the Anglican Family and wider community, I wish to address you on the subject of the proposed referendum on the legalisation of the “numbers business” in the Bahamas.

I wish to provide you with some information and also encourage broad discussion. This will aid you in your decision making.

The issue

The issue is the decision of the government to hold a referendum so that the people can decide on whether or not there should be the expansion of gambling in the country. We understand this to mean the legalisation of the local numbers business (web shop activities) but not a provision for a national lottery (this statement was issued before Prime Minister Christie added the national lottery to the referendum). The Progressive Liberal Party promised a referendum in its pre-general election Charter for Governance. The Free National Movement, when it was the government, had also indicated that it would resolve the self-same question by way of a referendum.

The context

In 1959, the government of the Bahamas made explicit provision to legalise casino gambling in the country.

The decision was made for economic reasons focused on the facilitation of the expansion of tourism. The general public was not consulted.

Since 1959, successive governments have increased the number of casino operations. Gambling is a key component of our tourism product and is also at the heart of economic activities in the country.

The country as a whole was tacitly brought into the economic reality of casinos and, thereby, legalised gambling, without paying attention to the moral argument. Few church officials have ever suggested that their members avoid employment in casino-related establishments.

There have arisen, from time to time, protests against the denial of the right of Bahamians to participate in casino gambling. These arguments usually cite the provision of the Constitution against discrimination. The government’s official reason for the denial was the desire to protect the local citizens and residents in light of the generally acknowledged negative impact of the Hobby Horse Race Track which was a thriving entity at the time.

The illegal numbers business has taken root over the past century. We grew up knowing about the place of thriving establishments that were a staple part of the Bahamian landscape and diet. The numbers business has expanded significantly over the past decade, with the introduction of gambling via the web shops: same concept, new packaging. Although verifiable data is not available, there can be no doubt that a significant number of Bahamians engage in these activities which are regulated and controlled solely by the operators of the web shops. Persons in the industry have said informally that there could be 150-200,000 web accounts in existence in the various web shop companies combined in the country.

Given the technological basis of the web shop operations, the ability of the police to prevent or control such operations is minute to negligible.

Both major political parties publicly announced their intention to hold a referendum on the future of the web shop operations. The reasoning behind this policy decision was the desire to bring some regulation and control to the present “industry”, coupled with economics – as was the case in 1959.

Both major political parties appear to be determined to remove these activities from the criminal arena. Under our existing law operators of gambling houses and persons who patronise such establishments are breaking the law.

We note that the number of “web shops” has increased tremendously all over the Bahamas since the time of the last surge of national discussion in 2009-2010. In just those 2-3 short years the increase in these locations has been nothing short of phenomenal. Anyone who travels the islands of the Bahamas can attest to this.

The reasons for this are four-fold:

• The government continues to be unable or unwilling to enforce the existing law

• The government continues to give licenses for web shops knowing that the principal function of these establishments is – by far – not providing computer caf� facilities for those who have no computer of their own, or for children to do homework after school

• Sheer supply and demand. The market forces have indicated and dictated expansion. Enough persons want to do it to be able to sustain an increase in the number of locations. There are even roving “customer-service agents” with hand-held devices who come to where you are to do business.

• The freedom enjoyed by the companies involved in an industry that is against the law. They advertise in the media, they have banded together into an association, they are touting their contribution to society (number of employees, salaries paid, NIB and other benefits paid, all adding to the economy – not to mention their contributions to sports, charitable, church and community development pursuits). They have even indicated that they are prepared to spend more than $1 million on a marketing campaign to ensure a favourable referendum result.

Conclusion

The whole matter has really gotten quite out of hand and, some will argue, is too big for even the police to reign in. Unless the government is prepared to simply shut down these establishments “cold turkey” – which it seems to be unprepared or unwilling to do – then the government has no other choice than to attempt to regulate and tax the existing industry. The Prime Minister indicated that, if the result of the referendum did not favour the decriminalising of the numbers business, the government would have no other choice than to shut down these establishments. This must be taken as the government’s assertion that these establishments can simply be “shut down.”

A referendum, on any issue provides the citizens with an opportunity to participate in the formulation of policy. While there may be cause for some to suspect the motive behind the use of the referendum mechanism, the right of the citizens to be consulted is an important aspect of genuine democracy. Also, one has to respect the fact that some issues are so significant, and represent such a major shift in policy, norms or behaviour, that it might be best if governments seek the comment of a majority of citizens before venturing into such a new arena.

Adequate opportunity must be provided for persons to examine the issues before they are invited to express their ‘choice’ by way of the ballot box. The church must be an agency that encourages dialogue and that creates a forum for information and wholesome discussion on this and other issues, since a part of our stewardship is being a good citizen in the country where God has placed us. Our duty to God involves our participation in national life. Remember the Biblical injunction: “Render to Caesar the things that are Caesar’s, and to God the things that are God’s.” This calls Christians to play their part in national life and in dealing with national issues.

We must be certain that persons who make a choice on this subject do so from an informed position, ie, knowing what motivation is informing their choice.

What is gambling?

Gambling is a broad subject area encompassing games or activities involving some risk with the potential for granting an advantage to the person or persons who “play” or “are involved”. Some persons condemn all forms of this activity. There are others who tolerate them in varying degrees. For example, many persons have no difficulty with raffles and door prizes, or with a game of bingo. These are isolated and individual events which are usually held for fundraising and charitable causes. Individuals will buy a raffle ticket, or a door prize ticket at an event, or play a game of bingo and give no second thought to it; they see it as harmless, as I believe these involvements to be.

Edward Rodgers writes: “A small stake in a raffle for a worthy cause inflicts no conceivable hardship on the purchaser of the ticket and is motivated more by generous desire to help than by anticipatory greed.” This reasoning led the 108th session of our Diocesan Synod, meeting in October, 2008, to allow raffles in our Anglican Schools as a means of fundraising. This came after many years of a moratorium on the holding of raffles in the diocese that was put in place during the time of the late Bishop Michael Eldon. Recently, the 111th Session of Synod passed another resolution to lift that moratorium entirely and to allow parishes also to hold raffles for fundraising purposes.

Kindly note that these two decisions have nothing to with, and are completely unrelated to, the current discussion on the expansion of legal opportunities for gambling. They would have occurred even if that discussion did not take place or was not taking place.

The Anglican Church has no difficulty with raffles, door prizes or bingo.

The numbers business is a completely different thing. It is a 24-hour-a-day, 7-day-a-week enterprise in which persons engage and which is definitely habit-forming and downright addictive for a majority of its participants. It is a system which is designed to exploit the participants so that the few will benefit at the expense of the many. The modern day reality is that this form of gambling is easily accessible to all via the internet, via numerous web shops and via other means. Persons can play with very little money. This easy access leads to widespread use by persons of all ages, classes, backgrounds and socio-economic standings.

November 21, 2012

Tribune 242 

Caribbean Blog International

From web shop operations to the legality of a referendum ...Perry Christie has been staggeringly confusing... ...Given his utter confusion, one can imagine how voters feel... ...A NO vote is the only logical choice amidst the great confusion Christie has wrought

Flip-flopping and dissembling: Christie’s credibility collapses
Front Porch

By Simon



In the debate on gambling we have a prime minister more engaged in zero-sum game-playing biased towards special interests rather than an open, straightforward approach that would benefit the majority of Bahamians.

In the lead-up to a promised referendum – rejiggered to an opinion poll – relative of legalizing web cafes, Perry Christie has appeared dissembling, confusing and incorrigibly incompetent.

We are being treated to 50 or so shades of gray, rather than conclusive answers to clear-cut questions.   Whatever the poll tally, an early loser is Christie’s credibility, having crashed, with poor odds of reviving any time soon.

Channelling the contortion of former U.S.-presidential candidate John Kerry that he was for the second Iraq War before he was against it, Christie said there was a report before saying there is no report from his UK-based consultants.

Children are taught early that a contortion often leads to another, then another, resulting in one becoming so tongue-tied and twisted into knots that one begins to resemble a pretzel of irreconcilable contradictions.

In a story in this journal, Christie performed an acrobatic flip worthy of Cirque du Soleil.  Fasten your seatbelt: It’s going to be a bumpy ride following Christie’s flip-flopping:  “‘What report?  What report?’ he [Christie] responded, when asked if he would release the consultants’ report before the referendum on gambling...‘It was never a specific report.

‘It’s no physical report; there are three or four pages of advice that you get from time to time.  I don’t understand the question of whether there is a report to be released.  There are like five, six, seven different letters to us — no report.’

When asked if he would release the written communication from the consultants, he said, ‘No, why would I want to do that?  For years and years we’ve been receiving advice as to casinos and changing casinos, so what is the relevance, that I’m hiding something on it?’  What curious choice of language.

Magician

Christie might double as a magician with the report which he said existed, now only a few pages of advice.  The story confirmed: “However, Christie previously told The Nassau Guardian that the UK consultants presented a ‘report’ to him, but he said he had to review it before he could reveal their advice.”

Confused?  There’s more.  The story’s subtitle, “Christie not clear on how web shops operate”, was highlighted when he was asked a question about the operation of web shops: “‘I have no idea how they do their operations’, he said.  ‘The details will come in the legislation.  It only becomes relevant if in fact there is a vote for us to go ahead.’”  Further: “He said he wrestled with the decision to exclude a national lottery from the ballot.”

Let’s see if we can unravel this tangled web cafe weave that is being spun into a yarn.  Christie claims that he has no idea about certain web shop operations.  Well, shouldn’t he have made inquires before calling a referendum on the very web cafes of which he claims to have limited knowledge.

It’s the ever-so-handy ignorance defense Christie employs, like his claim that he doesn’t know if various web shop enterprises gave money to his party at the recent general election.  Watch for his ignorance defense on other hot-button issues.

In terms of web cafes, surely a well-informed leader and self-described great democrat like Christie would want to dispel his veil of ignorance on matters which speak to a potential conflict of interest and the need for good governance.  Curiously, in claiming ignorance of these matters he is also claiming to be woefully incompetent.

Indeed, if Christie is so studiously ignorant of matters widely-known among the general populace, and critical for decision-making on web cafe gambling, he clearly lacks the credibility to make informed judgments on this complex issue.

Nonsense

Inexcusably, he is counselling that various matters that should be known in advance will only become relevant after a yes vote.  There it is: Christie thinks that he’s that clever and voters that stupid to buy such nonsense.

Christie offered that he: “ ...wrestled with the decision to exclude a national lottery from the ballot.”  Was it the sort of wrestling one might watch on television in which promoters know the results beforehand, and after heavily betting on the outcome?

Nevertheless, as there is supposedly no report and only a few letters from the consultants, what was Christie wrestling with?  By the way, how much were the consultants paid for the few letters of advice?  And, if there is no detailed report, why should we believe his claim that a national lottery is commercially nonviable?

The Nassau Guardian’s story noted: “Christie said those who are concerned about how web shops would operate in a regulated industry should be satisfied that the government would impose ‘stringent and effective’ laws on the market.”

Suppose a flip-flopping, fast-talking travelling salesman asks for a blank check for a vague-sounding scheme, the details of which he will give you only after you hand him the check?  It would be folly to handover such a check.

Given the jackpot of lemons of foolish talk, inconsistency and reluctance to share certain information, the Christie administration should not be handed a blank check on the question of web cafe gambling.
The Guardian story read: “Last week, the prime minister said the referendum would only ask Bahamians to vote on whether they wish web shops to be legalized...”.  Here’s where knowledge of how web cafes operate is critically important for such a seemingly ill-informed prime minister to understand.

Today’s web cafes are gambling enterprises through which customers may bet on all manner of games from overseas lotteries to games of chance one might find in a casino.

Variance

In being asked whether such cafes should be legalized are we essentially being asked to green-light private lotteries and online casino gambling?  All of which appears at variance with what Christie said in a House communication: “Based on the considered advice of the government’s UK-based, international specialist consultants, it is no longer considered that a national lottery would be commercially viable at this time.”

A national lottery is less viable if competing lotteries are being run by private interests who will pocket the vast majority of the profits.

But a national lottery is commercially viable if the web cafes become national lottery outlets instead of a cartel raking in windfall profits for formerly criminal enterprises.

In a shameful betrayal of the national interest and the common good Perry Gladstone Christie has opted for a private lottery system that will mostly benefit the greed of a few, instead of a national lottery that will overwhelmingly benefit the needs of the many.

Christie also said in his communication: “ ...Neither the extension of casino gambling nor the removal of the prohibition on casino gambling by Bahamian citizens and residents will be the subject of the forthcoming referendum. ... To be completely clear, therefore, the forthcoming referendum will focus only on web shop gaming.”

Sadly, when this prime minister says that he intends “to be completely clear” that may signal that contradictions and convoluted rhetoric will follow.  Unless we are absolutely clear on the gambling to be permitted in web cafes, the legalization of web cafe-related casino gambling may be in the offing.  So Bahamians will be permitted to legally engage in this type of casino gambling, but not in casinos?

Christie’s claim of neutrality in the debate on gambling is a farce wrapped in a series of flip-flopping riddles, chronic contradictions and breathtaking hypocrisy.

Of his rush to have a vote on gambling, Christie said with a straight face that the opposition would have to get used to his supposedly newfound pace of decision-making.  Of course that had to be a joke.

The sad truth is that Christie and his government are chronically incompetent whether they are late-again or rush into a bungling and inept decision.  With Christie, no matter the pace of his decisions, competence has never been his strong suit.

From web shop operations to the legality of a referendum on this issue, Christie has been staggeringly confusing.  Given his utter confusion, one can imagine how voters feel.  A no vote is the only logical choice amidst the great confusion Christie has wrought.

November 13, 2012

The Nassau Guardian



www.bahamapundit.com

frontporchguardian@gmail.com

...the Bahamian government has got its gaming policy wrong ...it should implement a National Lottery rather than look at legalising web shop operations (“personal rackets") - says international regulatory expert and mayor of Port of Spain, Trinidad and Tobago - Louis Lee Sing

Gaming Expert: Government Wrong To Legalise 'Rackets'

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

An international regulatory expert yesterday said the Bahamian government had got its gaming policy wrong, arguing that it should implement a National Lottery rather than look at legalising web shop operations he described as “personal rackets”.

Louis Lee Sing, mayor of Port of Spain, Trinidad and Tobago’s capital, told Tribune Business that gaming must be operated or managed by the state, not left in the hands of a few select citizens.

Mr Lee Sing, a former chairman of Trinidad’s National Lottery Control Board, who was instrumental in helping to reform the gaming business in that country, was a presenter at yesterday’s session of the Bahamas Institute of Chartered Accountants (BICA) accountant’s week seminar.

Mr Lee Sing, who made it clear that he had no vested interest on the outcome of the December 3 referendum on whether or not to legalise web shop gaming, told Tribune Business: “The Trinidad and Tobago lottery has proven to be a success story.

“Between 2010 and 2012 it has generated roughly $5 billion T&T dollars. The highest contributing game to it is a number game we used to call Whe Whe, which we turned into a game we call Play Whe. All of this is online, and it provides the kind of transparency needed in something like gaming.

“Gaming in any society must be operated by the state. If it is not operated by the state it must be managed by the state, and so the question is not whether to regulate it but how to regulate, when to regulate and where to regulate.

“If you approach it from that perspective, the question really answers itself. In Trinidad and Tobago we have allowed the online games to grow, to prosper and it has given every Trinidadian the opportunity to participate without any hanky-panky, corruption or fraud.”

Mr Lee Sing further added: “What you have here, I suspect, is something different than we have in T&T. My fear is that you are about to legalise something that ought not to have been in the first place. People can’t be allowed to run their own rackets, as it were.

“I sense that the Government, rather than go the way of legalising the web operators, should be moving as it were to introduce a National Lottery.

Of course, the web operators could be a part of a national lottery because if they are taking bets now for other kinds of games, they would be permitted to take bets for the lottery by putting in a terminal, but they would not have ultimate control over the terminal."

“My argument is that the all the men who currently run web shops or internet cafes should be asked to continue running Internet cafes and, if they wish, they could apply for a lottery terminal and they would be playing by the rules of the state. They would not be able to do hanky panky and money laundering.”

The Christie administration’s consultants, Dixon, Wilson & Co, ruled out a National Lottery for the Bahamas on the grounds that there would not be enough interest, especially given the competition from Florida.

But Mr Lee Sing said that it was in the best interest of “countries, the people and economies” to legalise and regulate gaming.

“It’s important that the Government of the Bahamas take control of the lottery,” he said. “In taking control of the lottery the Government must ensure that people across the Bahamas are allowed to play the lottery simultaneously.

“If those fellows who are running these Internet cafes want to be a part of the dance, let them buy the ticket and come in. Let them buy a lottery terminal that can be placed in the cafes, so that they can have a chance to be a part of the process, but you cannot leave it in the hands of a few select citizens at the expense of everyone else.”

Outlining some of the benefits of legalised gaming, Mr Lee Sing said: “If you legalise gaming you are going to create employment and organise sustainable employment at varying levels.

“You would be making varying contributions to the state. You are going to be given an opportunity to do clearly defined good projects. You will ensure the collection of fees and taxes. You will ensure that there is transparency.”

November 07, 2012

Tribune242

Caribbean Blog International

Prime Minister Perry Christie says:... ...The government would ensure that gaming laws are enforced ...and that persons who break them are dealt with to the full extent of the law ...should Bahamians vote NO to the legalisation of web shop gaming in The Bahamas ...in the upcoming referendum - December 03, 2012

PM Says Money Could Be Funnelled Into Public Purse

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

IF BAHAMIANS say “yes” to the legalisation of web shop gaming in the country, tax revenues ranging from $15 to $20 million a year could be funnelled into the public purse, Prime Minister Perry Christie announced yesterday.

In addition, web shop chiefs, Mr Christie said, could face up to $1 million in licensing fees coupled with a performance bond in a bid to award certification to a small number of licensees.

 

The Prime Minister made the statement in the House of Assembly shortly after announcing that Bahamians would turn out to the polls in one month to cast votes during the highly anticipated referendum.

 

Mr Christie said: “If licensed web shop gaming becomes a reality, it is anticipated that tax revenues would initially be at $15 to $20 million range per annum.

 

“I wish to make it clear that in the event that the referendum question passes, it would be the policy of my government to limit web shop licenses to a small number. This would also help ensure that the regulatory infrastructure of the Gaming Board, which I confirm would be the regulator of the licensed web shops is up to the task of adequately monitoring and regulating web shop operations.”

 

Mr Christie said the revenue would be earmarked for use in helping to fund educational scholarships, athletic, sporting, music and art developments.

 

A range of private and public community, health, infrastructure, recreational, and social outreach facilities and programmes are to be funded as well.

 

To qualify for a web shop gaming license, applicants would have to meet specific criteria which include experience, integrity and expertise along with a suitable financial footing. Organisational and internal controls to operate in a responsible and transparent manner are also required, the Prime Minister said.

 

“This would be in addition to the annual taxes that would be payable, based on the revenues of the licensed web shops, similar to the taxation structure that applies to casinos.

 

“Web shops would also be required to contribute to the cost of implementing the new laws and regulations for web shops.”

 

The legalising of this type of gaming would then force owners to fund, at their own expense, programmes to help protect gamers from addiction and to help in the treatment and rehabilitation of such persons.

 

Instituting measures approved by the Gaming Board, to ensure that only persons of the legal age are allowed to use web shop facilities is also required.

 

Anti-money laundering standards also would be altered to ensure that the Bahamas remains effective in its monitoring regulations, Mr Christie said.

 

The government would ensure that gaming laws are enforced and that persons who break them are dealt with to the full extent of the law should Bahamians vote no, The Prime Minister said.

November 02, 2012

Tribune242

Caribbean Blog International