Tourism Minister Obie Wilchcombe yesterday projected that the government could collect up to $40 million in web shop revenue in the first year of regularization and up to $25 million in the ensuing years.
During the budget process, the government projected it would generate approximately $12 million in web shop taxes. But Wilchcombe said when the taxes are added to other fees, "We will get more than [that]."
Wilchcombe noted that in addition to the taxes and fees associated with regularizing web shops, those establishments, in some cases, will also face hefty penalties.
According to Section 85 of the Gaming Bill, web shops will be required to pay business license fees, in addition to gaming taxes for a period of six years in lieu of taxes which would have been payable had the businesses been licensed under the act.
"I don't think that in any given year you'll get less than $25 million [in web shop revenue]," Wilchcombe told
The Nassau Guardian.
"In the first year, you will get significantly more because they are paying back penalties. That's going to be significant. They are paying other fees so you expect it to be much more than that. But I think going forward you would have not less than $25 million."
Wilchcombe said the taxes each operator will pay will be based on the turnover and gross profits of each business during the previous six years. He said each operator will be required to present that information.
Those web shops that have not been in business for five years or more will pay $250,000 for the years that they've been in business, Wilchcombe said.
The fees will only apply to businesses that are invited to apply for a web shop license, according to the bill.
The businesses that are not invited to apply will have to cease operations once the regularization transition period ends, the bill says.
The transition period refers to the period of regularization. The minister responsible for gaming will specify the date in a notice that will be published in a gazette, according to the Gaming Bill.
Wilchcombe tabled the 2014 Gaming House Operator Regulations along with the new Gaming Bill in the House of Assembly on Wednesday morning. Once passed, the legislation would pave the way for the regularization of web shops.
According to the regulations, web shops will be taxed at a rate of 11 percent and will be required to pay a quarter of a million dollars annually for license and monitoring fees.
That would be in addition to separate license fees for essentially all of their employees.
Web shops will also be required to obtain a gaming house operator license at a cost of $5,000.
Other fees attached to the process are: A gaming house premises license, which has a fee of $2,000; a gaming house agent license, which would attract a $1,000 fee; a key employee license that would attract a $250 fee and a gaming employee license, which would cost $150.
As previously reported, key employee refers to managers, supervisors, pit bosses, pit clerks, inspector and other positions that may be prescribed by the Gaming Board.
A gaming employee refers to cashiers, ticket sellers, count room personnel, dealers and croupiers, machine technicians and security personnel.

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