While expressing his satisfaction over the 10-year moratorium on the web shop industry, CEO of FML Group of Companies Craig Flowers raised concerns over the number of gaming houses each operator is allowed to have and how a decision on that may have an adverse impact on Island Luck's future in the securities market.
Speaking with Guardian Business overseas yesterday, Flowers lauded Island Luck CEO Sebas Bastian's announcement on working toward releasing an initial public offering (IPO) as early as May.
But with no official word on the number of houses each operator can have, Flowers suggested that Bastian's move for an IPO could somewhat be misleading to interested buyers.
Flowers, who revealed he paid nearly $3 million in back taxes to the government, urged gaming officials to make a decision in order to ensure fairness in the industry.
"We will be selling shares on today's value by individual companies, and that, I think, is going to change drastically if the
government puts in place or makes it known to all of us what is its position on all companies having the option to obtain the same amount of stores. That's the big question to me," said Flowers.
"If we all have the same option, then the value for Island Luck's position will devalue over time.
"Other companies will certainly, as they grow, take advantage of their share of stores, and Island Luck may not have anymore expansion other than the reduction."
Flowers banked on two major flaws for any gaming operator entering the securities market: the industry being fairly new to regulation and that no operator knows the true value of its company.
If the true value of the company is not known, Flowers warned that this could "deceive" the buyer.
"The other question in the room that has not been answered, as far as the market share is concerned is, will the other companies who received their licenses at the same date and time as Island Luck, are we all going to be limited to the same amount of stores?" he queried.
"We just regulated ourselves. If that is the case, then tell us all, what is the limit of stores that the government wants in the country.
"We need to know what is the true value of my company. If this value is going to change over the next year or so, I need to know before I go public .
"I can't deceive the buyer of my shares that my company will get better or even sustain its present value if there is something fundamentally going to change by government."
Minister of Tourism with responsibility for the gaming industry Obie Wilchcombe shared similar views with Flowers on the matter of finding a reasonable number of houses that each operator can have.
"We want to control the number of houses and agents throughout the island. That is an issue we are still doing integration to, and I am hoping in a very short period of time, we will come back with a true analysis," Wilchcombe told Guardian Business yesterday.
"There is still work to be done, but we are making progress.
"I think there has to be a balance. We are going to have to find a number that is workable for all, and I think a number that will allow persons to, if they wish to at a particular amount, they can have but they cannot exceed that particular amount.
"We just have to arrive at that number."
Wilchcombe pointed out that the concern of proliferation remains heightened.
"So, obviously we share a lot about what Mr. Flowers believes because we want to control the number of houses and agents throughout the island," he said.

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