Web shops flourish one year after vote

Tue, Jan 28th 2014, 12:49 PM

There are at least 251 web shops in operation run by 35 different companies, according to documents obtained by The Nassau Guardian.
The information from the Ministry of Finance details the web shops that were licensed by the government in 2013.
The largest web shop operator is Island Luck, which has 44 licensed locations in New Providence and several Family Island locations, according to the data.
Other large franchises include Paradise Games with 36 locations; Asure Win with 30 locations; Asue Draw 28 locations; WhatFall.com with 22 locations and Chances with 20 locations.
The FML brand of web shops, owned by prominent businessman Craig Flowers, had 10 licensed locations last year, according to the data.
Today marks the first anniversary of the referendum which asked voters if they supported the regulation and taxation of web shops and the creation of a national lottery.
On January 28, 2013 about 45 percent of registered voters turned up at the polls. Results from the Parliamentary Registration Department show that 17,000 more people voted no on the question of web shop gaming than those who voted yes.
The numbers show that 46,961 people voted no to a national lottery and 33,170 voted yes.
Flowers made a bold declaration a week before the vote.
He told The Nassau Guardian that he would close all of his web shops in the country and send staff home with benefits if the referendum failed and the government ordered a shut down of the industry.
He is one of several web shop bosses locked in a court battle with the government over the legality of their operations.
Attorney Wayne Munroe, who represents the businessmen, said there has been no movement in the case since last May when his firm filed a statement of claim.
Munroe believes the case will remain in limbo until Parliament passes the Gaming Bill.
"The next step is for the Office of the Attorney General to file their defense," Munroe said in a recent interview.
"But before that could happen, the government indicated [its] intention to pass a Gaming Bill into law. So it's a consensus that there is no point moving forward with litigation that has to do with the Lotteries and Gaming Act when it's the stated intention of the government to repeal it.
"Right now we're challenging the Lotteries and Gaming Act and asking for it to be interpreted.
"[It's] pointless driving that action forward strongly to litigation if the government says it's going to replace this."
A draft of that Gaming Bill was tabled in the House of Assembly last October and debate was expected to begin a few weeks later.
However, the bill has been shelved and a definitive date for when it will be debated is not known.
DIVISION
Former Senator Philip Galanis, who coordinated the referendum's Vote Yes campaign, also believes the ongoing court action is the reason why the industry is still vibrant.
"Police cannot enforce the law in terms of closing down the web shops and the government has taken no action to move either positively or negatively in this matter," Galanis told The Nassau Guardian.
"I think a lot of that has to do with the fact that this matter is still before the courts."
Still, Galanis believes the Christie administration should take the lead and regulate the sector.
"I believe that the government can however make a preemptive strike and proceed with perhaps making the necessary regulations in order to legitimize this activity. And I think it's the right thing to do because this is part of the underground economy.
"The industry is comprised of young entrepreneurs, with talent, who make a tremendous, positive impact on the gross domestic product.
"They employ nearly 4,000 people. They can also be taxed in a way that is equitable to all so that the government is able to receive some benefit from that activity, and I think that is something that should drive the government to do what is necessary and right in the circumstances."
The day after the referendum, Prime Minister Perry Christie ordered web shops to cease their gaming operations with immediate effect or face prosecution.
However, a handful of web shop operators secured an injunction on January 30, 2013 to prevent the government and police from shutting their businesses down.
Christie recently said that he regrets holding the referendum.
In an exclusive interview with The Nassau Guardian, he said he should have taken the bold step of regulating web shops after coming to office and not put it to a public vote.
His declaration, and the government's inaction over web shops, have angered those who fought against the referendum.
Bahamas Christian Council President Rev. Dr. Ranford Patterson last week called on the government to be guided by the results of the referendum and shut web shops down.
Whether the government will move to do this or introduce legislation to regulate the sector remains unclear.
Whatever the outcome, it may have little effect on the thousands of patrons who use web shops to gamble in store or online.
The Nassau Guardian spoke with one frequent gambler who said the referendum's results did nothing to deter him from the practice.
"I'm not afraid because if the government wanted to lock you up for [gambling in a] web shop, why do they give people licenses?" asked the 55-year-old maintenance worker, who did not want to be named.
"I'm working, but I need extra money so I play numbers to get a little extra money.
"Fifty cents gives you $200. Some people don't make that in a week. So if I could buy a number for a dollar with a four ball and win $3,000, why not?"

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