Underground gambling firms are upping the ante when it comes to jackpot prizes. In the lead up to a nationwide referendum on the legalization of gambling, at least two of the big five companies are offering houses as part of a "grand prize". According to Levin Wilson, a former executive at Asue Draw, What Fall was the first gambling house to offer a house in New Providence about six weeks ago. However, recent advertisements in the capital indicate that rival company Island Luck is now also presenting its "Big Bang" campaign whereby a house and car are among the top prizes.
"It's a very competitive market so everyone is trying to come up with a way to gain market share," Wilson said. "What Fall is a relatively new player and they're grabbing more market share in the industry. When they offered a house, that shifted the industry a bit." Island Luck, Asue Draw, Nassau Games, What Fall and Island Games are generally considered the big five Bahamian gambling houses. The new class of prizes comes not only during the Christmas season, but also amid swirling controversy on the referendum next year.
Few subjects have enflamed and divided portions of Bahamian society more, despite the presence of underground gambling houses in the country for decades. Prime Minister Perry Christie recently postponed the referendum to January 28 due to widespread confusion over what the people are voting on. Since then, debate has continued on what legalized gambling would truly look like. The idea of a national lottery has also been added to the ballot sheet. Wilson told Guardian Business yesterday that an upcoming referendum is likely a factor behind more lucrative prizes.
He also noted that Asue Draw, a relatively new player in the gambling house scene, has "gained a lot of mileage" in a short period of time. "They are very aggressive and associated with Island Games. Based on that, they can get mileage very quickly," he said. "They have come a long way and continue to push the envelope. Now they are giving away homes. That was never done before."
While the prizes have grown increasingly valuable, the jury is out on whether the companies are playing a valuable role in the overall economy. Franklyn Wilson, the chairman of Sunshine Holdings Limited, said web cafes are simply a way for money within the country to "change hands". He said the industry would not stimulate considerable growth in the economy. "There is no economic benefit to gambling to truly create meaningful activity," he explained.
"I don't see any case for that. In fact, I would say the reverse is true. The underground economy exposes the country to serious attacks." James Smith, a key adviser to the Christie administration, said gambling is not "real economic activity". He said it doesn't create real value, although the loss of thousands of jobs would indeed hurt the economy. It's for that reason, and the fact the practice would only be driven further underground, that top business leaders believe that gambling must be regulated and thrust into the open.
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