The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A Cabinet minister yesterday indicated the Government has yet to decide how many web shops will be granted licences to operate legally, despite previous indications this number had been set.

Tourism Minister Obie Wilchcombe, who has responsibility for gaming, confirmed that legislation to regulate the web shop gaming sector is expected to be tabled in Parliament today.

The Government had indicated previously that only eight web shop chains will be licensed under the new regulatory regime, implying that smaller, less established operators will have to either merge with bigger rivals or go out of business.

Speaking on the issue outside the Cabinet Office yesterday, Mr Wilchcombe said: “That’s going to be determined based upon the applications. We will take a look at what the gaming industry can do.

“While we have received a tremendous amount of assistance from the gaming industry, and from the web shop owners, we still have to audit their books, and you can only audit their books after they have become regularised.

“That [the number of licensed web shops] will be determined upon the market, what the market can stand and what can work. A number of things are still to be determined but the audit must take place.”
 The Government has said the industry will be taxed retroactively to July 1. Mr Wilchombe added that the Government will reveal its tax rate for web shops when it introduces the legislation, but noted that the Government would likely review that rate after its audit.

“We will have a tax rate but we will still have to review it after the audit,” he explained. “The industry keeps changing, so you have to be mindful that we are doing something brand new and we are not going to put ourselves in a hole where we cannot get out.

“You have to ensure there is flexibility and that we can come back and visit it, because a part of our demand will be, of course, the audits.

“All of the web houses will have to be more professionally organised. They are going to have to have a CEO, financial controllers and do certain things they are not doing now, so that when we see numbers they will be correct and we can take the necessary decision.”