The web shop industry’s legalisastion has produced the opposite effect to the predictions of many critcs, a well-known QC has argued.

Wayne Munroe QC said the sector’s regulation and taxation has limited the unchecked, haphazard expansion of gaming houses and operators.

He added that further reductions in the number of industry players is likely, with their exit having less impact on consumers than in an unregulated market.

Mr Munroe told Tribune Business that while some had suggested a regulated industry would only bring about the proliferation of gaming houses, the evidence says otherwise.

“It would appear that the regulation of web shops not only stopped the proliferation but is reducing the number of web shops, and it may likely reduce further,” he said. The people who opposed it on the grounds that they would increase have been proven wrong.

“I could guarantee you that the business being regulated now, web shops are going out of business with less damage to the consumer. Before the legislation, customers would have just shown up to a web shop and found the place shut down with no warning, and there was nothing they could do.”

Eight gaming house operators were awarded conditional licenses last October. They included: FML Web Shop, A Sure Win, Chances Games, Paradise Games, Island Luck, Percy’s at the Island Game, Asue Draw + Spin, and Bahama Dreams.

Asue Draw + Spin recently announced its closure, while Island Luck has acquired a majority 65 per cent stake in Bahama Dreams. Two earlier players, Fantasy and WhatFall, are also no longer operating.

“Asue Draw recently said that they were going business. WhatFall is no longer in existence and they were a fairly large player, and Fantasy is no longer in existence,” said Mr Munroe.

“There were at least five or six persons who never made it to the point of getting a conditional license. Since that process, and conditions were issued, I believe that Bahama Dreams has amalgamated and Asue Draw has gone out of business.

“It would appear that the regulation of web shops not only stopped the proliferation, but is reducing the number of web shop [chains], and it may likely reduce further.”