Prime Minister Perry Christie last night ordered all web shop operators to shut down their gaming operations immediately or face arrest and prosecution.
The prime minister said web shop customers also risked arrest and prosecution if found gambling.
His statement came a day after voters rejected a referendum which asked people if they supported the regulation and taxation of web shops and the creation of a national lottery.
Most voters said no to both questions.
"In keeping with my government's commitment to abide by the will of the electorate as expressed on Monday's referendum, it has now become necessary to effect the closure of all web-shop gaming operations in The Bahamas," Christie said in a statement.
"Accordingly, all offending web shop owners and operators are placed on notice that all their gaming operations, including all online gaming and the numbers games, must cease with immediate effect. Failure to do so will leave all such web shop owners, operators and web shop gaming patrons exposed to arrest and criminal prosecution without further notice or warning."
Christie said web shops could stay open as long as they did not facilitate illegal gambling.
"While web shop owners and operators must cease and desist from gaming operations immediately, they are not required to close the door on their employees and those persons with whom they have lawful commercial relationships," he said.
"This includes relationships with landlords throughout the country, as well as relationships with utility and service companies, suppliers of goods, and other third-party creditors."
Christie said he hoped web shop owners would abide by his warning to eliminate the need for police to have to arrest and prosecute offenders.
His statement came hours after he spoke to reporters at a brief press conference at the Cabinet Office.
At that time, Christie said he had to confer with his Cabinet colleagues before he could reveal what the government planned to do in the face of the failed gambling referendum.
While Christie said his government will "be guided" by Monday's poll results he refused to answer questions from reporters when asked about the low voter turnout or if the government planned to shut down web shops immediately.
He would only say that he had to speak with his Cabinet first and that another statement will be made soon regarding the government's next step.
Yesterday morning, Christie thanked voters for participating in the vote which he said was a major step forward for democracy.
He affirmed that Monday's referendum is the "first in a series" of referenda that will be held this term.
"As for the results of [Monday's] referendum I reaffirm that my government will be guided by those results in charting the way forward," he said. "I respect the position that has been established by the electorate and the policy of my government will be shaped accordingly."
According to unofficial results released by the Parliamentary Registration Department, 45 percent of registered voters cast ballots in the referendum.
When asked what he thought the low voter turnout signaled, Christie said, "All of these things have implications that we will discuss shortly."

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