I want people to understand, gambling is not a bad thing if you do it within the framework of what it's meant to be, which is fun and entertaining. - Michael Jordan
One year ago, Bahamians went to the polls to vote in a referendum in which they were asked to state whether they agreed to one, the regulation and taxation of web shop gaming, and two, the establishment of a national lottery. This week, we would like to Consider This... how do Bahamians feel about the first question one year later?
The referendum results
On January 28, 2013 the referendum results were:
The referendum voter turnout of 48 percent of the 2012 registered voters was extremely low compared to the 156,000 votes cast in the 2012 general election, which represented a 91 percent turnout of the 172,128 registered voters.
What conclusions can be made from the referendum vote?
With respect to question one on the referendum ballot, notwithstanding the results of the referendum, we believe that it would be erroneous to conclude that a majority of Bahamians are opposed to regularizing web shops. The fact is that, although a majority of Bahamians voted against such regularization in last year's referendum, the outcome is neither persuasive nor conclusive. We also maintain that the referendum results do not represent the true national sentiment on this issue, particularly in light of the low voter turnout.
The total number of votes cast against the regularization of web shops was 51,146 or 62 percent of the votes cast versus 31,657, or 38 percent of the votes, cast in favor of regularization. The low voter referendum turnout compared to the turnout for the 2012 general election leads one to believe that it would be erroneous to conclude that a majority of Bahamians are opposed to legalizing web shops.
There were several reasons for the outcome of the referendum.
First, we believe that many voters did not clearly understand what they were being asked to vote on. After the referendum, voters indicated that they were confused on the issues.
Secondly, the involvement and vehement anti-web shop campaign by the Christian Council did not aid in the education process.
Thirdly, some persons indicated that they believed that the government should have been more engaged in the process and should have more clearly indicated the benefits of voting yes. In the absence of the government education on the issues, which was exacerbated by its assertion of "not having a horse in the race", voters were detracted from active participation in the referendum exercise. This was borne out in the low voter turnout.
Other voters felt that a yes vote meant that only a limited number of web shops would be allowed to operate and that this was inherently discriminatory because anyone wishing to operate a web shop and satisfying the prescribed rules should be allowed to do so. Many voters did not think that this would be permitted. Still others were disturbed that the issue of allowing Bahamians to gamble in casinos was not placed on the ballot and therefore either voted no or did not vote at all.
Finally, once the official opposition took a position to oppose the referendum questions, this further confused the issues. The referendum became a one-sided partisan issue with the PLP remaining disengaged while the FNM actively opposed the endeavor, which was a 360-degree reversal of its earlier support for regulating the web shops since the Ingraham administration had drafted regulations for web shop operations before it was turned out of office in May 2012.
What has changed?
In a scientific poll of 575 individuals that was conducted last month, respondents were asked: Do you support or oppose the legalization of web shops? The result of that scientific poll was extremely enlightening. According to that poll, the percentage of persons who supported the legalization and regulation of web shops was 55 percent while 40 percent of the respondents opposed the prospect.
In light of the poll results, we maintain that the referendum results in 2013 did not accurately represent the genuine national sentiment on this issue, particularly in light of the extremely low voter turnout.
The moral imperative
In the aforementioned scientific poll last month, Bahamians overwhelmingly (83 percent) indicated that the government needs to increase its revenues, although they are uncertain that value-added tax is the best means for doing so.
During the run-up to the referendum, the government indicated that $20 million to $30 million would be raised by regulating and taxing the web shops. The $20 million to $30 million annual tax windfall that would have resulted from a yes vote would have significantly strengthened the public coffers. The significantly slim no-vote "majority" of just over 50,000 souls has deprived the population of 350,000 of that substantial revenue injection.
In light of the proliferation of web shops and their substantial income, which has been estimated to be as much as $400 million, it is essential for the government to bring this activity out of the shadows into the light, especially since the web shop operators, their employees and participants are unable to bank their earnings from this sector. This is the point that was recently made by the governor of the Central Bank: If they are going to be allowed to exist, then they should be regulated.
Many Bahamians believe that the position of some members of the Christian Council on this issue is disingenuous and duplicitous at best and hypocritical at worst. As many persons have observed, Christian pastors frequently request web shop operators to fund their churches and church-sponsored activities. Most churches in The Bahamas benefit from collections and tithes of persons who own, work and participate in web shops. In fact, we have never heard of any pastors refusing to accept the offerings of their members whose funds are garnered from the proceeds of web shop employment or winnings.
To add insult to injury, the same pastors who oppose web shops have not taken the same myopic view of their parishioners who work in the casinos in The Bahamas. However, they vehemently oppose the operators and workers in web shops. This is the height of hypocrisy.
Conclusion
Armed with the recent polling data, and cognizant of the pervasive presence and national reach of web shops, we hope that the government will do the right thing by regularizing, regulating and taxing the web shops so that this significant economic activity can be brought into the real economy with the consequential substantial benefits that will inevitably inure to the country by so doing.
We believe that the time is long overdue for the government to demonstrate bold, decisive leadership in this regard and to finally do the right thing by legalizing this activity.

o Philip C. Galanis is the managing partner of HLB Galanis & Co., Chartered Accountants, Forensic & Litigation Support Services. He served 15 years in Parliament. Please send your comments to pgalanis@gmail.com.

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