By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Regulators have rejected arguments by Sebas Bastian's web shop and media empire that a 5am to 9pm bar on gaming advertising is "discriminatory, arbitrary and capricious".

The Utilities Regulation and Competition Authority (URCA), in an announcement earlier this week, stick firmly to its original position that no gaming-related advertising be carried by Bahamian radio and TV stations during this so-called "watershed period" in a bid to protect children and young adults from harm.

The regulator, in affirming the results of the consultation on updating the "code of practice" that governs content provided by local broadcasters, dismissed arguments by Mr Bastian's Island Luck web shop chain and its attorney, Alfred Sears QC, that "a sweeping and blanket watershed period" was an unnecessarily heavy-handed approach by URCA.

Mr Sears' submission on behalf of Playtech Systems, Island Luck's immediate parent company, argued that his client's "interests will be disproportionately and adversely affected" by the 16-hour daily block on TV and radio gaming advertisements.

He argued that there was no "empirical evidence" to back URCA's stance, adding that the absence of any gaming operator representatives on the group that devised the "code of practice" reforms meant they were based on "discriminatory, arbitrary and capricious assumptions, and will have a disproportionately severe impact on the domestic gaming industry".

URCA, though, pointed out that there was no legal requirement for web shops to be represented on the "code of practice" group, adding that neither Island Luck nor any of its competitors had produced any data of their own to disprove the regulator's case.

"URCA notes that Sears & Company disagrees that the implementation and introduction of a 'sweeping and blanket' watershed period is the appropriate, rational and proportionate regulatory remedy to accomplish the purpose of protecting children and young persons under 18 years from gaming advertisements," the regulator said.

"URCA considers that Sears & Company has not provided sufficient, nor any clarification and evidential support, for its position that the watershed period is a 'sweeping and blanket' proposal.

"URCA also considers that it was open to Sears & Company to provide, but it did not so provide, any alternative recommendation which it considered would be an appropriate remedy to accomplish URCA’s stated purpose of limiting the exposure of children and young persons to gaming advertisements during the periods when they are the most likely to be part of the audience," URCA continued.

"The implementation of watershed periods in relation to gaming/gambling advertising is an international best practice, and URCA is aware that watershed periods have been adopted by international regulatory authorities as an appropriate remedy to limit exposure of children and young persons to gaming during the periods when they are most likely to be part of the audience."

Mr Sears was unaware of URCA's verdict until contacted by Tribune Business yesterday. However, the impact likely represents a so-called 'double whammy' for Mr Bastian's multiple business interests. For besides the restrictions imposed on Island Luck's broadcast (TV and radio) advertising, the effects also potentially spill over into his media interests.

For ILTV, or Island Luck TV, which shares similar ownership with the web shop chain, and is number 224 on Cable Bahamas' REV TV service, relies heavily on gaming-related advertising and promotes an hourly lottery-type draw known as Quik Draw. That, in theory, will have to be cut back substantially to comply with URCA's new edict.

The station, which is based by the roundabout at the John F Kennedy (JFK) Drive and Thompson Boulevard junction, is used heavily as a marketing tool to promote the Island Luck web shop chain on a 24-hour, seven days per week, basis. It is also affiliated with The Beat 103.5 FM radio station, which shares the same building as ILTV.

Mr Sears, in his submission, argued that URCA's proposed remedy is "premature" and ignored other gaming regulatory protections. "Sears & Company noted that URCA did not produce or cite a single example of children being targeted by gaming advertisements in The Bahamas, and that URCA’s claim of the increasing prevalence of gambling within the Bahamian society was factually incorrect," the regulator said.

To prove his case, Mr Sears argued that the Bahamian web shop market had reduced from 25 operators and 640 locations prior to its 2014 legalisation to just seven companies and less than 300 sites now. He also cited regulations requiring patrons to prove they are more than 18 years-old, and the industry's own self-regulatory standards.

"URCA considers that Sears & Company has applied a very narrow interpretation to URCA’s statement about the prevalence of gambling in the Bahamian society, and limited support for its position to empirical data which, at best, illustrates a concentration of competition in the domestic gaming industry," the regulator replied.

"The full context of URCA’s statement encompasses the burgeoning extent to which gaming/gambling, since becoming regularised, is being advertised and promoted in the Bahamian society by pay television and radio broadcast licensees......

"URCA therefore considers that now that the gaming industry is regularised and lawful in The Bahamas, the reach by the gaming industry through pay television and radio advertising has become more prevalent in the Bahamian society, and the imposition of a watershed period on all pay television and radio broadcast licensees is consistent with section 5(c) of the Communications Act in order to limit exposure to children and young persons under 18 years-old."

URCA also dismissed Mr Sears' references to the constitution and case law, adding: "URCA considers that the watershed period, as proposed under the code, will allow for the freedom of expression of gaming/gambling related advertisements and sponsorship in a manner that protects public morality in relation to children and persons under 18 years."