Minister: It has been the source of legal action and debate, so we decided to just do away with it
NASSAU, BAHAMAS — Island Luck CEO Sebas Bastian said yesterday that the patron tax on winnings introduced under the former administration “made no sense to begin with” and would have driven players back to the unregulated market.
Economic Affairs Minister Michael Halkitis recently told Eyewitness News the tax would be repealed.
Bastian said: “The patron tax never made sense to begin with. It would have driven players back to the unregulated market, while reducing the regulated tax revenue.
“I think the current government’s decision is based on them taking the opportunity to look at the studies and unintended consequences winning taxes can have.
“I suspect that in the end, the previous administration realized that it was not a tax that would yield much revenue but never sought to correct it. This further highlights the importance of government and stakeholder consultation prior to major changes in any industry, not just gaming.
“We remain optimistic that we can expect proper dialogue and due process from the government if any [future] gaming matters arise.”
The gaming industry, if you look at it in terms of taxation — not only versus casinos but other businesses — is very heavily taxed.
– Economic Affairs Minister Michael Halkitis
When asked about the issue yesterday, Halkitis said: “That patron tax, as far as I know, had not come into effect, and so we decided to do away with it.
“It has been the source of legal action and debate, so we decided to just do away with it.
“The gaming industry, if you look at it in terms of taxation — not only versus casinos but other businesses — is very heavily taxed. We believe that it’s just better to do away with it (the patron tax).”
The tax, which was introduced under the Minnis administration, was intended to see a five percent levy paid by patrons on winnings up to $1,000, and 7.5 percent on anything greater than $1,000.
Its imposition, however, was met by legal challenges.
