Island Luck in deal for web shop rival

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Island Luck is awaiting regulatory approval for the acquisition of the rival Bahama Dreams web shop chain, Tribune Business can reveal, the first consolidation to occur in the newly-legalised industry.

Sources familiar with the deal confirmed yesterday that Island Luck, headed by Sebas Bastian, is purchasing a majority equity stake in its competitor, which it then plans to consolidate with its existing operations.

Island Luck officials were tight-lipped when contacted by Tribune Business yesterday, declining to comment on the deal amid “sensitivities” associated with the need to obtain the Gaming Board’s approval before the deal can close.

But one source close to developments told this newspaper “you’re very warm” when it asked whether Island Luck and its parent, Playtech Systems, were close to acquiring and consolidating Bahama Dreams.

Anton Roker, Bahama Dreams’ principal, did not return messages left by this newspaper seeking comment prior to press time yesterday.

However, Tribune Business was told that Bahama Dreams had been forced to seek a purchaser after its deal with Super Value’s owner and president, Rupert Roberts, to place web shop kiosks in the supermarket chain’s stores was blocked by the Minister of Tourism.

Obie Wilchcombe, who has ministerial responsibility for gaming, overrode the Gaming Board in forcing Bahama Dreams and Super Value to abandon their commercial tie-up, which was intended to lead to bigger things.

For Tribune Business was told that Mr Roberts planned to acquire a majority equity stake in Bahama Dreams, with one source confirming of the Super Value owner: “That’s true. He did make a bid for it [Bahama Dreams].”

Mr Wilchcombe’s intervention, though, also seems to have scuppered that deal, forcing Bahama Dreams to seek a new deal and ‘pushing’ the web shop operator into the arms of Island Luck and Mr Bastian.

Mr Roberts did not return Tribune Business’s message seeking comment before press time last night, with this newspaper told he was in a meeting when it contacted Super Value’s head office.

However, prior to Mr Wilchcombe’s actions, the Super Value owner earlier this year appeared enthusiastic about the economic benefits from the Bahama Dreams link.

“We’re going to sell it the way we sell Top-Up and everything else, “ he told Tribune Business then. “People don’t have to go sneaking around the corner now.

“Gas stations have it, convenience stores have it, it’s in most places. It’s legal and it’s very strictly controlled. Children are not going to be able to buy it. If there is a question, we’ll do what they do cashing cheques; ask for two forms for identification.”

“The ones that want it can buy it when they buy groceries. Today, web shop gaming is legal. After the industry became legal there was one, Island Luck, that moved next door to our Super Value store in the Prince Charles Shopping Centre, and Sunday night, the traffic there was similar to what the food store draws for Christmas.”

Having an active web shop kiosk in Super Value’s stores would likely have driven more consumer traffic - and more sales - to its stores, attracted by the convenience of purchasing groceries and ‘numbers’ at the same time.

The relationship would have made for a ‘win-win’ for both parties, and further legitimised the web shop gaming industry following its legalisation.

Island Luck’s move on Bahama Dreams is the first sign of consolidation among the players in the newly-legalised gaming industry, and is a development that will not surprise informed observers.

For legalisation has brought with it added costs through compliance and regulation, not to mention taxation, which requires web shops to pay the greater of 25 per cent of their operating income (EBITDA) or the 11 per cent gaming tax.

This will favour the larger players with deeper financial ‘war chests’, such as Island Luck and Craig Flowers’ FML Group of Companies, and it is possible further consolidations may follow Bahama Dreams.

The Government, via the Gaming Board, is also moving to enforce the zoning requirements related to web shops, which require that they not be near schools or places of worship. Some 200 locations are already said to have closed.

It is unclear what will happen to Bahama Dreams’ transitional web shop gaming licence should its sale to Island Luck close, although it will likely have to be relinquished and handed back to the Gaming Board.

While this may create an opening for Bet Vegas, the one applicant that was refused a web shop gaming licence, this appears unlikely.

The fact that the web shop industry has yet to move to its fully licensed phase, as opposed to being stuck in ‘transition’, is also thought to have complicated the Bahama Dreams purchase.

However, an end to the wait may soon be in sight. “If all things work out as they should, there’s no reason why the transition to full licensing should not be complete by the end of September,” one source said.

Comments

proudloudandfnm says...

Sebas is one sickeningly greedy human being. These web shops are bad for our country. Thank you Perry. You got your kickback and now the country is being raped.

Web shops must be closed down....

Posted 15 September 2016, 3:26 p.m. Suggest removal

CMon_Man says...

I too do not like how the government handled the gaming issue but to call this guy greedy is curious especially when not a signal post called Rubert Roberts greedy or anything else negative when he was trying to buy this company. My people.

Posted 16 September 2016, 10:09 a.m. Suggest removal

PapaGolf says...

Will Asue Draw be the next webshop to close down?

Posted 15 September 2016, 3:58 p.m. Suggest removal

Well_mudda_take_sic says...

Has Minnis or McCartney adopted as a vital part of their party's platform, the repeal of all legislation purporting to legalize the gaming web shop enterprises? When was the last time Minnis or McCartney spoke out against the scourge of the gaming web shops on our society?

Posted 15 September 2016, 4:34 p.m. Suggest removal

Greentea says...

Bahamians who denigrate the webshops and say nothing about gambling in Atlantis or Cable Beach are hypocrites of the highest order. You aren't hearing from them or anyone running for office- except maybe the "Christian" parties - because there will be no repeal. The folding of these companies and the acquisition of failing enterprises by more successful ones is called capitalism. As much as Bahamians seem to like to gamble, I am not one of them, the story that they are all making money hand over foot is obviously a myth. This represents a natural thinning of the businesses. I suspect only three shops will be left standing. I have had only one encounter with Sebas as we came on the same flight once. His mouth was as dirty as an old fashion outside toilet. And while he would never be my friend, I don't have to like his personality to respect what he has been able to do with his business. Like it or not, his business is now legal and Bahamians need to stop hating- sounds more like jealousy than anything else. The young people running these businesses are quite innovative and aren't interested in old fashioned ways of doing things. Maybe we need to pay more attention to what they are doing rather than denigrate them for not doing things the way YOU think they should be done.

Posted 19 September 2016, 1:45 p.m. Suggest removal

Well_mudda_take_sic says...

This comment was removed by the site staff for violation of the usage agreement.

Posted 19 September 2016, 2:35 p.m.

JohnDoe says...

That is nonsense to the highest level and you know it. There is no evidence to support your assertions. At least let's have a substantive debate about these issues of national importance as opposed to talking pure nonsense.

Posted 19 September 2016, 2:55 p.m. Suggest removal

watcher says...

> the first consolidation to occur ***in the newly-legalised industry*.**

It still makes my blood boil whenever I see this phrase. The Government totally ignored the overwhelming wish of the people at the referendum, and I would urge everyone to remember the utter contempt with which they treated us, when next you cast your vote. We must never forget what the PLP is capable of

Posted 16 September 2016, 9:29 a.m. Suggest removal

Greentea says...

Wouldn't have been any different whether it was PLP or FNM.

Posted 19 September 2016, 1:46 p.m. Suggest removal

John says...

The fact is that the Web Shop (business) is not a rosy picture as one was led to believe. It is not always a cash cow. First off it is very costly business to get into ,and because of the large volumes of cash that is handled, bank-like policies and procedures must be in place to avoid 'shrinkage' (ok tief'in). Also the web shops themselves have engaged in an expand and conquer mission where they try to open as many stores as possible and that is also costly and causing casualties. Shops are virtually cannibalizing each other. While Sebas strategy appears 'greedy' since he seems to want to conquer the market rather than maintaining a fair market share, like lowers web shop, it is his innovations and creativity that is drawing more customers to his shops. And he is not involved in just the gaming industry but construction and other ventures

Posted 16 September 2016, 4:15 p.m. Suggest removal

ThisIsOurs says...

I wonder how many legitimate business interests Ninety had...

Posted 16 September 2016, 4:40 p.m. Suggest removal

John says...

and your point?

Posted 19 September 2016, 10:07 a.m. Suggest removal

ThisIsOurs says...

All gangsters look for legitimate ways to wash their money. The legitimate usage does not negate the *gangsterism*. Doing good deeds with the illegal proceeds is a marketing strategy used by the cartels, the mafia and even al Qaeda. The marketing serves to cover the real activity and lull the population into a sense of complacency. My God, look at what the
Chinese are doing..."severance for everybody and a Junkanoo parade!"

Posted 19 September 2016, 6:21 p.m. Suggest removal

CMon_Man says...

And just what is the equivalence between the Chinese and gangsterism as you term it?

Posted 19 September 2016, 10:48 p.m. Suggest removal

Well_mudda_take_sic says...

Like Greentea, you are another shining example of why the Bahamas is where it is today. "Tit for tat" and "They did it so I can do it too" are classic phrases that sum up your inability to distinguish right from wrong and your inclination to do the wrong thing rather than the right thing. Too many Bahamians suffer from this same dysfunctional line of thinking.

Posted 19 September 2016, 2:41 p.m. Suggest removal

Greentea says...

If they have done all you say- why don't you bring charges against them? Certainly they belong in prison if they are as you say. I don't know the fellas. But since you know so much and must have the evidence to prove it why don't you bring that evidence to Greenslade and secure a place for them in Fox Hill? Just prattling on this site and not doing sheeet about your very serious allegations is "another shining example of why the Bahamas is where it is today". Talk. Talk. Talk. Willing to slander like a troll behind a computer and not a damn bit of action in the real world.

Posted 19 September 2016, 11:23 p.m. Suggest removal

Well_mudda_take_sic says...

This comment was removed by the site staff for violation of the usage agreement.

Posted 20 September 2016, 11:47 a.m.

sheeprunner12 says...

Will Island Luck replace Royal Bank of Canada as the government's bank of choice????? ......... It seems that the stars are aligning this way ....... with fewer options for correspondence banking services, the major clearing banks will be forced to close or consolidate their businesses (in a growing hostile banking environment)

Posted 20 September 2016, 2:19 p.m. Suggest removal

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