Nassau, Bahamas - Statement by The Honourable Obediah H. Wilchcombe,
M.P., Minister of Tourism, on Commencement of New Gaming Legislation
made on November 19, 2014:
Today
it gives me great pleasure as the Minister responsible for gaming, to announce
the imminent coming into operation of the Gaming Act, 2014, the Gaming
Regulations, 2014, the Gaming House Operator Regulations, 2014, the Financial
Transactions Reporting (Amendment) Act, 2014, the Financial Transactions
Reporting (Gaming) Regulations, 2014 and the Proceeds of Crime (Amendment) Act,
2014.
This
comprehensive cutting edge legislation sets the stage for the modernisation of
the gaming industry, regulating and placing casinos in The Bahamas in a
position to compete with the world’s leading gaming jurisdictions. At the same time the new legislation sets the
stage for the regularisation, licensing and regulation of the web shop industry
in The Bahamas.
The
procedures which have been developed to manage this process in a streamlined
and effective way are the product of careful deliberation and planning, have
been meticulously crafted in the legislation, and must be observed in the
finest detail. It is therefore of critical importance that not only all
web-shop owners, but also the public at large, should be familiar with the
action steps which are going to be taken in the next few weeks and months, as
we enter this vital transitional period. Becoming familiar with the process is
the first step towards ensuring that the requirements of the law are observed,
and it is the intention of the Government to see to it that this indeed occurs.
This
compendium of new legislation will come into force on Monday, November 24,
2014. Notices of its coming into force will be published in the
Gazette and the local press. This date constitutes
the starting point for the process of full and frank disclosure by web-shop
owners of their past business operations, which is the forerunner to the
application and licensing process in respect of gaming houses in The Bahamas.
It is critical to note that under the terms of the legislation, all web-shop
owners who intend to continue the operation of their existing businesses, after
the legislation has come into effect but before gaming house operator and
gaming house premises licences are granted, are legally obliged to make payment
of arrear taxes in respect of their operations, in respect of the period
commencing on July 1 2014 and ending on November 24 2014. These arrear taxes
must be paid to the Gaming Board by no later than Monday, December 1 2014. Any
failure by a web-shop proprietor to pay these arrear taxes timeously and in
full will be grounds for the disqualification of such business for licensing,
as well as the disqualification of the owner thereof from participating in a
licence bid. Therefore even those web-shop owners who may not yet have made a
final decision as to whether they intend to continue their operations during
the transitional period are advised to make payment of the arrear taxes, in
order to avoid later disqualification for licensing as gaming house operators. Web-shop
operators are urged to make contact with the Secretary of the Gaming Board if
they have any queries in this regard.
Monday,
December 1 2014 is also the date on which web-shop owners are required to make
full and frank disclosure of the revenues generated by their past business
operations. A notice will be published in the Gazette, and the local press which
sets forth the procedure to be followed and the documentation to be submitted
for the purposes of the full and frank disclosure process. All web-shop owners
are urged to procure a copy of this notice so that they may acquaint themselves
fully with the requirements to be enforced. Web-shop owners which do not adhere
to the full and frank disclosure process will not qualify for gaming house
operator licences.
The
legislation provides further that by no later than 14 days after the date of
coming into operation of the Gaming Act, that is on Monday December 8 2014,
web-shop owners are required to lodge sworn affidavits with the Secretary of
the Gaming Board, disclosing whether or not they wish to continue the operation
of their businesses during the transitional period. Separate pro forma
affidavits have been developed for completion by web-shop owners seeking to
continue their business operations during the transitional period and those who
elect to cease their operations. These affidavits are annexed to the Gaming
House Operator Regulations, to be published in the
Gazette by November 25, 2014.
December
8 2014 will be the final cut-off point for the submission of these affidavits
to the Secretary of the Gaming Board. Web-shop owners who fail to lodge
affidavits by that date will be deemed to have elected to cease the operation
of their businesses during the transitional period. The affidavits lodged with
the Gaming Board will be made available to the Commissioner of Police by no
later than Tuesday, December 9 2014. All web-shop owners who fail to lodge
affidavits or who lodge affidavits indicating that they intend ceasing their
operations during the transitional period will be obliged to ensure that their
businesses are no longer operating with effect from Tuesday, December 9 2014.
Because the Commissioner of Police will be in possession of copies of all the
affidavits lodged with the Gaming Board, the Royal Bahamas Police Force will be
in a position conclusively to determine, on December 9 2014, whether all the
businesses which are legally required to be closed have indeed closed their doors
for trading. Criminal prosecutions will be instituted in respect of those
businesses which see fit to transgress the law in this regard.
On
Wednesday, December 17 2014, official notices will be served on web-shop owners
who have elected to continue the operation of their businesses during the
transitional period. These notices will set forth the quantum of the fees and
penalties payable in respect of such businesses under the Gaming Act. A
web-shop owner on whom such a notice has been served is required to lodge a
certified copy of any such notice with the Secretary of the Gaming Board by no
later than December 19 2014. This will enable the Gaming Board to maintain its
own record of the quantum of fees and penalties due by each web-shop owner. The
latest date for the payment in full of fees and penalties by web-shop owners
whose businesses remain open during the transitional period is Monday, January
12 2015, although payments can be made before this date. Any web-shop owner who
has remained open for business and who makes payment of the fees and penalties
due by him, whether in whole or in part, is required, at the time of making
such payment, also to serve a notice on the Secretary of the Gaming Board
setting forth the amount of the payment made, the total amount of the fees and
penalties for which such person is liable, and any balance which may remain
outstanding at the time of payment. This notice must be accompanied by
satisfactory documentary proof that the relevant payment has been made.
In
the meantime, the Gaming Board will, on December 17 2014, publish a notice in
the
Gazette, notifying the public of
its intention to issue a Request for Proposal (or “RFP”) document. The RFP will
invite applications for gaming house operator and gaming house premises
licences in The Bahamas. The RFP will be available for purchase from the
Secretary of the Gaming Board with effect from Monday, January 5 2015. Only
companies which are held 100% by Bahamian citizens who ordinarily reside in The
Bahamas will qualify for licensing as a gaming house operator. Each company
that intends submitting an application for a gaming house operator licence must
purchase a separate RFP document in order to qualify to submit a bid. The
closing date for the purchase of an RFP will be Friday, January 9 2015. Every company
which purchases an RFP will be registered by the Gaming Board. This
registration entitles the relevant entity to apply for a gaming house operator
licence. Registrants will be able to submit queries and requests for
clarification concerning any aspect of the RFP to the Gaming Board until
February 13 2015, and the Gaming Board will circulate the responses to these
requests without identifying the registrant which made the request.
The
closing date for the submission of applications for gaming house operator and
gaming house premises licences will be Friday, February 20 2015. The Secretary
of the Gaming Board will publish the identifying particulars of all companies
which have applied for these licences in the Gazette by no later than Friday,
February 27 2015.
In
the interim, the staff of the Gaming Board will conduct detailed probity
investigations into the various applicants, with a view to determining whether
they qualify for licensing and have submitted applications which meet or exceed
the requirements of the legislation and the RFP. The focus and purpose of these
investigations is to ensure that the gaming house sector in The Bahamas will be
fit and proper for licensing and free of criminal or corruptive elements, as is
the case in respect of all industry sectors. It is envisaged, if all goes well,
that this process will be concluded by early May 2015, whereafter the
adjudication process will commence. 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.
I
wish to remind web shop owners who chose for their businesses to remain open
during the transition period, that it will be required that they conduct their
affairs in a professional, compliant manner, similar to what would be expected
from operators licenced under the Gaming Act.
In specific, conduct that subscribes to principles of fair play,
timeously honouring pay-outs of customer winnings, and not using tactics to
marginalize competing operators. In this
regard the Gaming Board will be monitoring operators and the conduct of their
businesses during the transition period.
Their conduct will be taken into consideration during the licensing
process.
The
coming into operation of the new gaming legislation, and the licensing and
regulation of gaming houses in The Bahamas is a turning point in the history of
the domestic gaming sector in The Bahamas. I am confident that with the level
of effort and meticulous planning which has gone into the management of the
transitional process, and with the cooperation of all stakeholders, the
necessary groundwork will have been laid for a thriving, legitimate and
socially responsible gaming house industry in The Bahamas. Likewise with the ongoing collaboration and
cooperation with casino operators, we look forward to a period of expansion and
growth in the existing casinos on Paradise Island, Bimini and Freeport and the
opening of Baha Mar’s exciting new casino which will be the largest in the
Caribbean.