The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

At least four web shop operators exited the industry before the new Gaming Bill ever went to Parliament, a prominent attorney has revealed, while confirming that Percy’s Island Game was “definitely going ahead” to obtain a license.

Wayne Munroe told Tribune Business that he was representing Percy’s Island Game, one of the oldest gaming houses in the country, in its bid to obtain a gaming house operator license through the Request for Proposal (RFP) process.

The Gaming Act is expected to come into force today. Web shops that intend to remain open during the transitional period before obtaining licenses must pay their tax arrears for the period July 1 to November 24, 2014, no later than December 1.

“During the consultation period I think they came up with a list of 12. After the meeting where they came up with this list of 12, four people on that list, their shops were closed before the Act ever went to Parliament,” said Mr Munroe.

“I guess some people got licenses assuming it would guarantee something, and it could be something they could sell later, which isn’t the case.”

Mr Munroe said Percy’s Island Game was “definitely going on” in the licensing process.

“The issue is whether folks have the funds to pay the tax they have to pay by December 1. If they want to stay open, they pay. If they don’t pay it, they can’t stay open, and the Government can still pursue them for it. How many people ultimately remain will be decided by how many determine whether it makes sense to carry on. That’s going to be a business decision.,” said Mr Munroe.

The Government has indicated that a maximum of eight licenses would be issued. “You definitely want more than one, but there would be a maximum number that you wouldn’t want to go beyond,” said Mr Munroe.

“You don’t want the market to be too crowded or there will be a race to the bottom in terms of payout and profits will fall. The government’s tax is based on end profit, so it’s not in the taxing authorities interest for net profits to be low.

Tourism Minister Obie Wilchcombe, who has ministerial responsibility for gaming, said last week that any failure by a web shop proprietor to pay back taxes in a timely manner and in full will be grounds for disqualification from the licensing. process.

He said webshop owners who may not yet have made a final decision as to whether they intend to continue their operations during the transitional period should make payment of the arrears, in order to avoid later disqualification for licensing as gaming house operators.

Web shop owners are required to make “full and frank disclosure of revenues generated by their past business operations” by December 1. Failure to do this will result in them being disqualified from obtaining gaming house operator licences, the Minister said.

Operators have until December 8 to lodge sworn affidavits with the secretary of the Gaming Board, in which they disclose whether they wish to operate their businesses during the transitional period.

On December 17, the Gaming Board is expected to publish a notice about its intention to issue a request for proposal (RFP) for licenses.

Mr Wilchcombe said the closing date for purchasing an RFP will be January 9, 2015. The closing date for submitting applications for gaming house operator and gaming house premises licences will be February 20, 2015.

Once the final decision has been taken regarding which of the applications have been successful, “notices of closure will be served on those businesses in respect of which licences have not been granted”.

These businesses will then be required to close their doors within seven days of the date of service of the notice of closure.