There is strong belief that T& T’s casino sector has been infiltrated by organised crime elements, Finance Minister Larry Howai said yesterday, adding some businesses didn’t want to operate in T&T since the casino sector was unregulated.
He made the point in piloting a 95-clause legislation to regulate the decades-old sector, encompassing aspects from owners and operators to bookmakers and key employees, plus protection of minors and vulnerable groups.
Regulation is proposed, via a Gambling Control Commission, which will establish a licensing framework and stringent criteria. It requires a three-fifth majority vote in Parliament for passage.
However, the Opposition PNM objected to the bill, citing “excessive criminalisation” and stiff penalties.
Howai said the legislation would seek to control money laundering and anti-terrorism financing regarding the growing industry in T&T. He said it was an area with potential and possibility for money laundering, since a lot of cash could pass through.
Stressing it was important to present organised crime from infiltrating the sector, he said the legislation would assist in dealing with the situation.
Howai said any attempts to stop the industry, put it “underground” and criminalise it, would only make it worse. He said the industry was very extensive, was growing and had serious consequences for family life and minors.
Club employees are estimated between 7,000 and 12,000; amusement gaming centres around 10,000 (and up to 20,000) and there are 11 betting shops.
Average annual betting intake is estimated around $600 million, though that measure is largely unreported .
Howai said consultation on the bill was held with stakeholders in 55 meetings as well as scrutiny by a team of experts representing the banking, social, ICT and chartered accountant sectors and Tobago. Foreign legislation and procedures were also examined.
HOW WILL IT WORK?
Licences will be required for ownership of gambling establishments, betting activities, selling/leasing gaming machines, import/supply of licensed gaming machines, installing/maintaining/repairing devices, doing gambling on premises and other aspects, including for directors, associates and key employees.
Licences can be revoked if a customer feels threatened, a licencee has committed a criminal offence or if false information is given regarding licensing. The Gambling Control Commission’s regulator can issue licences, impose penalties, verify employee backgrounds and can inspect records, premises, devices and determine if an offence had been committed. Licence applicants will be required to submit to in-depth background checks into their finances, businesses, taxation, as well as criminal records or other records.
The commission will be empowered to check into the licensing of any business, including probing each applicant, associates, key employees and do interviews. It can also request finger and palm prints of personnel in keeping with anti-money laundering and counter-terrorism financing regulations while significant shareholders will also be scrutinised as well as key employees and trustees.Offences include a $1 million fine and one year’s jail for cheating. Other criminal offences include doing business without a licence, gaming in public places, failing to co-operate with authorities, giving false statements and allowing minors to gamble, enter gaming halls or employing them.
Absolute restriction on gambling by minors, under age 18, is proposed. Codes of conduct for dealing with patrons is also proposed. A rehabilitation fund will assist gambling addicts and their families and a development fund will channel funding to the arts, culture and other aspects in communities. Under the Bill, schools, religious bodies or residents or communities can object to the presences of casinos in their midst.
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PNM senator Faris Al-Rawi said the PNM wanted to support the bill as the casino industry lends itself to corruption and perversion but he complained the PNM only received the bill yesterday and had expected the Government to send it to a special committee for perusal.
He accused the Government of not giving notice of presenting the Bill and had expected the Beverage Recycling Bill instead after debating another Bill for 13 hours on Monday.
Al-Rawi said the Bill involved “excessive criminalisation” and questioned the justification for penalties, such as a $5 million fine and five years’ jail for false statements, $1 million fine and one year’s jail for cheating at gambling, a $5 million fine and two years jail for viewing gambling proceedings electronically.
During the lunch break he spoke to casino workers in the Parliament public gallery.