Orville Clarke, Freelance Reporter

CHIN

Xavier Chin, president of the United Bookmakers Association (UBA), is calling on the Government to review the tax structure as it relates to bookmakers.

Chin, who is also the CEO of Track Price Plus, the island's leading bookmaking company, believes that after five months in office, it's time for the new Government to begin to address some of the issues affecting the bookmaking sector, especially with the new licensing session scheduled for April 1.

Specifically, Chin wants a review of the gross profit tax imposed by the previous government last September and which took effect last October.

"We are calling on the new State Minister of Finance, Don Wehby, who has portfolio responsibility for horse racing and the gaming sector, to review this tax in an effort for us to maintain viability and increase future revenues for both the Government and the bookmaking sector".

Strongly object

The UBA's concerns were outlined in a letter to the Ministry of Finance over the signature of Chin, dated February 12. It stated in part:

"The United Bookmakers Associa-tion, comprising Track Price Plus, Champion Betting Company and Markham Betting Company Limited, strongly object to the recommendation by the former Minister of Finance, Dr Omar Davies, to increase the gross profit tax on licensed bookmakers from 16.5 per cent to 23 per cent effective October 2007.

"The UBA contends that a gross profit tax in excess of 16.5 per cent which was recommended by the extensive report by Deloitte & Touche Tohmatsu in 2005 is not viable and will in fact further inhibit the growth of the legal bookmaking industry.

"We believe that the overdue proposed amendments to the Betting, Gaming and Lotteries (BGLC) Act will serve to increase the gross profit tax payable by bookmakers.

"Our studies indicate that with the enactment of the amendments, sales will increase from $2.45 billion to $9.68 billion in 2010 ... . We expect substantially greater improvements in the final out-turn whenever the sports betting taxation is moved to a GPT platform and telephone/online betting is introduced. An exponential increase in company profits tax on income will also be achieved."

It added: "Bookmakers' sales have remained flat over the years due to the delay in approval of the BGLC amendments and our inability to provide the wide range of betting opportunities available worldwide.

"This has affected our plans for expansion and increased employment opportunities and has caused the promoting company, Caymanas Track Limited, to lose increased right fees from the bookmakers," stated the letter.

Chin went on to point out that sport betting on events like the Super Bowl and World Cup Football are huge worldwide and given the proper amendments to the BGLC Act, local bookmakers would be able to tap into that market.