Attorneys for web shop bosses yesterday filed documents in the Supreme Court in an effort to permanently prevent the government from shutting down their operations. Attorney Alfred Sears represents Kevin Knowles of Paradise Games. In an affidavit, Knowles argued that shutting down his business would displace his employees and hinder commitments he has with landlords and utility companies. Attorney Wayne Munroe represents the owners of Island Game, Island Luck, FML Group of Companies, Asue Draw, Whatfall and Chances.
Last Wednesday, Sears and Munroe secured an injunction from Senior Justice Jon Isaacs preventing the minister of finance, the minister of national security, the minister of tourism, the commissioner of police and the attorney general from shutting down web shops. The five are also listed as the defendants in the matters. The injunction was handed down two days after a majority of voters voted no to the regulation and taxation of web shops and the establishment of a national lottery. In his affidavit, Knowles argued that he was reliably informed that numbers bosses met with officials from the Ministry of Finance back in 2010 under the Ingraham administration with an understanding that web shops would be taxed and regulated one day.
"It was the common understanding in the web shop cafe industry that, as a result of those meetings and the cooperation of the web cafe industry in providing information about the industry to the said ministry, police raids on web cafes would be suspended and that legislation would be passed to regulate and tax the web cafe industry," Knowles said. Knowles, who said he worked in the web cafe industry since 2001, opened Paradise Games on March 14, 2012. He said the company has a legitimate business license for Internet, web cafe and restaurant and bar services.
According to the affidavit, Paradise Games employs 160 full-time employees, with 26 locations throughout The Bahamas and has monthly commitments to rent and utility companies of nearly $60,000. "Unless restrained by this honorable court, the defendants threaten and intend to prevent, impede, hinder or interfere with the operations of the plaintiff's business," the affidavit said. "Many of the plaintiff's trade creditors and employees are apprehensive that their commercial interests will be harmed and the plaintiff will suffer damage accordingly."
Under the Ingraham administration the Computer Wagering Bill was drafted. But the bill that would have regulated the numbers industry was never brought to Parliament. As part of Knowles' affidavit, his attorney included a copy of former Prime Minister Hubert Ingraham's statements to the House of Assembly in 2008 where he indicated his administration was considering regulating and taxing web shops. "I told the commissioner of police last week that it seems to me that we are unable to enforce the law and that I was going to give consideration to legalizing the number business," said Ingraham at the time.
"Of course, he didn't support me in that thinking, but the reality is that it is not an enforceable law and the society is doing it every day. It is a web shop here, and a web shop there; all over the island. "In Abaco, web shop, web shop in Bimini, web shop in Exuma, it's nationwide." The Guardian will tomorrow outline the arguments to be presented by Munroe on behalf of his clients. Chief Justice Sir Michael Barnett is expected to either hear the matter or pass it on to another judge.
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