By Robert Hart and Orville Clarke, Staff ReportersONE WEEK after the implementation of Government's 15 per cent tax on the betting and gaming industry, lottery companies have recorded dwindling sales figures.
As gamblers now experience reduced winnings, both the Jamaica Lottery Company (JLC) and arch-rival, Supreme Ventures Limited, headed by Paul Hoo, have revealed double figure losses associated with their immensely popular games of chance.
Speaking at yesterday's launch of Saturday's Pick-3 Race Day
at Caymanas Park, chief executive officer of the JLC, Howard Mitchell, painted a grim picture of the operations of the Lotto company since the tax came into effect. He said that, although it was a little early to determine the real impact of the tax on the operations of the JLC, "we are seeing a reduction of up to 10 per cent".
At the same time, speaking to The Gleaner yesterday, Supreme Ventures vice president, Roger Williams, said his company has seen a dramatic 38 per cent decline in sales (so far this month) when compared to the $43 million a day recorded in August. In the week since the start of September, Supreme Ventures has recorded a daily sales average of $26 million.
SOLE CONTRIBUTOR
"What I can't say absolutely is that the tax is the sole contributor to the decline," Mr. Williams said, pointing out that the public is now trying to cope with both bus fare increases and school fees.
However, based on the extent of the sales decline, Supreme Ventures is convinced that the tax is responsible for a major portion of the decline, he added.
"There is very little consultation in this industry, unless you can call notification consultation. That's now the way to run an industry," Mr. Mitchell said.
"This industry faces a crisis," he added as he blasted the Government. "They are not making any serious effort to know the industry. We approach the industry and its affairs ad hoc ... there is no strategic focus, no long-term planning."
He said the gross revenue of the gaming sector is currently at "an uncertain $20 odd billion per year," with equipment costing between US$10 million and US$15 million and in excess of 12,000 workers.
NATIONAL SURVEY
Mr. Mitchell called for a national survey on gaming (including casino gambling) to determine which direction the industry must go, "otherwise we are going to lurch from crisis to crisis, from uncertainty to uncertainty".
The JLC head also called on the relevant regulatory agents to move immediately against illegal betting and gaming operations.
"If you don't, the market will shift and the illegal operators will take over," he said. He noted that, since the implementation of the tax, daily numbers game racketeers have increased their odds from 28-1 to 32-1, several points higher than the 26-1 pay out offered by Supreme Ventures' flagship game, Cash Pot.
Though admitting he had no "hard evidence", Mr. Williams said Supreme Ventures has received reports of a surge in the illegal market. But, on the JLC claim that illegal vendors have increased their odds, he added, "I can't confirm that, but, if that's so, then it makes life more difficult for us."
