Thursday, June 26, 2014
By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Web shop operators were yesterday said to be “very concerned” over the uncertainty and lack of any guarantees surrounding the industry’s impending legalisation.
Attorney Wayne Munroe who represents key players in the web shop gaming sector, including Island Luck, The FML Group of Companies, Asue Draw and Island Game, said the uncertainty over the Government’s plans was “not good for business”.
“My clients have not been guaranteed anything. There is no deal. If these guys had a deal, then the person they had it with is sure treating them rough. There is a degree of uncertainty and that would trouble any business person,” Mr Munroe told Tribune Business yesterday.
Prime Minister Perry Christie recently affirmed the government’s intention to regulate the web shop sector, and said the industry will be taxed retroactively to July 1. The gaming legislation is expected to be presented in Parliament next week.
“We haven’t seen the legislation as yet. We don’t know what’s in it. The web shops will be taxed retroactive to July 1, but the legislation will follow that,” said Mr Munroe.
“My understanding is that the Bill will be tabled July 1 but, of course, it still has to be debated and passed. My clients were the ones who came and said that the industry needed to be regulated for the benefit of the industry and the public as a whole. They will be taxed, but that also means that there will be controls.”
The Government has indicated that only eight web shops will be licensed under the new regulatory regime, implying that smaller, less established operators will have to either merge with bigger rivals or go out of business. Legalised operators will also likely have to post significant performance bonds.
Allyson Maynard-Gibson, the attorney general, earliert this week said the Government will impose a “penalty” on web shops for operating illegally prior to the new regulatory framework’s implementation.
“My understanding was that they would have to pay back Business License fees. I don’t know if I would call it a penalty, but I guess my clients would regard it as a penalty,” said Mr Munroe, adding: “My clients at this point understand that the government will do what it wants to do.”
Mr Munroe said there was uncertainty as to how many web shop licenses would be awarded. “That’s is a concern. In the general consultation, the Government made it clear that you can’t have unlimited licenses,” he said
“Their consultants would advise them on the number of licenses. I have heard a maximum of eight licenses being mentioned but we really don’t know what the decision will be.”
While some have questioned the Government’s projection of $12 million in web shop taxes, suggesting that it is too low, Mr Munroe reiterated his position that web shops be taxed at the same rate as casinos.
“Tax them at the same rate. Whatever that yields is what it yields. The problem I think is that there is a desire to kill local businesses. I cannot understand how people seem to want to kill local businesses,” he added.
“Many of the web shop operators are very concerned with the vocal approach of a small minority of people who seem to want to do their business harm. There seems to be some self-hating going on. These are successful black businessmen, and there are people who seem to simply not want them to succeed.”
Comments
The_Oracle says...
Oh woah is me, do I go to jail,
or become legit overnight?
Oh the stress of it all!
Will I lose thousands? Millions?
Sublime, to ridiculous to the ludicrous.
Use the confiscated moneys (100%) to build the prison in which they should be housed!
Surround them with their ill gotten gains!
Let it stand as an edifice to corruptions proper end!
Posted 26 June 2014, 1 p.m. Suggest removal
TigerB says...
Things will be more worst for web shop owners after they become legal, they will cry to turn back the hands of time... its often said to be careful what you wish for you just might get it... so they will be legal but will it be better?
Posted 26 June 2014, 1:28 p.m. Suggest removal
Purcell says...
Don't kid yourself. The last thing they want it to be taxed and regulated. It is all bullshit to blind the public.
Posted 26 June 2014, 10:36 p.m. Suggest removal
Well_mudda_take_sic says...
Nice try Mr. Munroe. We know Wilchcombe has told you and the mobsters/racketeers you represent that it must be made to look like the government is playing hardball with the known illicit gaming operators like Craig Flowers. But truth be told, if our PM (Perry Christie), Minister of National Security (Bernard Nottage), Attorney-General (Allyson Maynard-Gibson) and Police Commssioner (E. Greenslade) were all doing their jobs and abiding by the wishes of the Bahamian people as expressed in the referendum (instigated by the Christie administration and costing the Public Treasury more than one million dollars), all assets of the illegal gaming operators would be immediately seized for the benefit of the Bahamian people and the likes of Flowers would be forever banned from gaming activities or, better still, imprisoned for a reasonable period. Christie, Wilchcombe and Maynard-Gibson would have us believe our country needs to regularize the illicit operations of these webshop mobsters and racketeers when in fact what they should be doing is confiscating the assets of these known criminals and incarcerating them. Listening to Maynard_Gibson suggest that what the government is proposing to do is no different than what has been done in Canada with respect to online gaming is an absolute joke! Canada first cleaned-up all known illegal activities by confiscating the assets of the known criminals and in some instances putting them behind bars before passing legislation to regulate online gaming so that there would be a level playing field for all new duly licensed entrants to that newly regularized industry. Canada did not permit the known mobsters and racketeers to hold onto their wealth accumulated prior to the regularization process and many of the Canadian mobsters involved with illicit gaming operations were incarcerated on tax evasion charges with no statutory limit on how far back the evasion activities occurred. The Canadian Government and Revenue Canada (the tax authorities) reaped a huge windfall by first enforcing the then existing laws against known illicit gambling operators before passing new legislation to regulate gaming activities. To suggest that Canada was willing to forgive and forget the past illegal acts of the mobsters engaged in illicit online gaming and other criminal activities as part of the regularization process of its gaming industry is totally untrue and Gibson-Maynard knows it!
Posted 26 June 2014, 1:28 p.m. Suggest removal
Purcell says...
Wow. A few observations.
1, It is not in the webshops' interest to be taxed and regulated. Their interest is the status quo.
2, There is no way for the government to know how much webshops make. Everything is in computers and servers offshore and easily hidden by running parallel systems. One for the gov to see and one for the bosses to see.
3, How about to just shut them down as decided in the referendum?
The Bahamas is a very nice corrupt country. My beef is not with the lack of regulation, it is with the pretense these professional liars put up.
Posted 26 June 2014, 10:35 p.m. Suggest removal
sheeprunner12 says...
Ditto .................... I am convinced they all work together ........ Perry/PLP will say A and HAM/FNM will say B and DNA (Option 3) will say C. But in the end its all political spin ............ it will not create good public policy
Posted 28 June 2014, 10:06 a.m. Suggest removal
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