THE EDITOR, Sir:
I WRITE in response to a letter written by Mr. Howard Hamilton, a principal of the Jamaica Lottery Co., a competitor to Supreme Ventures Ltd..
Mr. Hamilton, dishonourably if not dishonestly, asserts that I am seeking to offer the Government a "fish-head" or a bribe if it will turn the other way or further taxing lottery winnings.
I will respect the facts as presented to Parliament to allow your readers to better understand the issues and the basis of our proposal:
A tax on winnings at this time will reduce the existing revenues by an estimated (25-35%), threaten the long-term viability of the industry and deprive the Government of revenue.
With an expected decline in the tax intake which would result form the reduction in sales, it is estimated that the Government would only gain an additional $200 million.
If the Government maintains the current tax regime and grant us permission to add new games, we project additional tax revenue of $1 billion per annum.
We at Supreme Ventures are so confident on our projections that we are prepared to guarantee the payment of $500 million in the first year, which is half of the projected potential additional Government revenue of $1 billion. This is not a fish-head or a bribe. This is a prepayment on taxes that will become due.
Mr. Hamilton's suggestion that pleadings to the Minister on other areas of gaming have fallen on "fallow ground" is false. Even as he writes, the Minister is considering the horse racing industry and further studies are being carried out on casinos. And to suggest that the proposal was "inappropriate and unseemly" reveals his lack of undertsanding of the principle of the prepayment of taxes.
These are the issues we have laid before the Minister. Tax more and earn only $200 million and damage an industry from which the Government earned nothing two years ago, or allow it to further expand and earn incrementally $1 billion more from that expansion.
Our projections are never based in wishful thinking or small talk. They are based on the same careful research and analysis that has led to our success, which perhaps is the bone of Mr. Hamiton's contention.
I am, etc.,
PAUL HOO
President of Supreme Ventures Ltd
