PORT OF SPAIN, Trinidad, CMC – The Trinidad and Tobago government says it is clamping down on illegal gambling here that has so far resulted in the state-owned National Lotteries Control Board (NLCB) losing billions of dollars (One TT dollar=US$0.16 cents) annually.
Finance Minister Davendranath Tancoo said that while the NLCB is a major contributor of revenue to the government with annual gross revenues close to three billion dollars, illegal lotteries comprising bets and payouts facilitated by third parties on the NLCB’s legal lottery games continue to impair the NLCB’s profit margins.
“It is estimated that revenues generated from illegal lotteries are upwards of nine billion dollars per year,” Tancoo said as he delivered the TT$59.2 billion (One TT dollar=US$0.16 cents) budget earlier this week. The debate on the fiscal package will begin on Friday.
He said additionally, these illicit activities also rob the government of income tax, corporation tax, windfall tax, and direct revenues from NLCB’s available surpluses.
“Furthermore, these illegal operators are reportedly also involved in other forms of illicit activities, including money-laundering, black market activities, and human trafficking,” Tancoo said, adding that to combat illegal lotteries, he is proposing an increase in existing penalties under the Gambling and Betting Act.
He said that the penalty will be increased to a fine of TT$250,000 and to imprisonment for three years, or conviction on indictment to a fine of three million dollars and to imprisonment for seven years.
He said that this is consistent with the new penalties that will be implemented as soon as the Gambling (Gaming Betting and Control) Act is proclaimed.
But Tancoo said that, notwithstanding the illegality of lotteries under the Gambling and Betting Act, it is essential to highlight that current illegal lotteries may not be captured under those offenses.
He said modern illegal lotteries are not conducted independently but instead use the results of the NLCB’s Online lottery draws, and that tickets are issued to players, usually resembling a grocery store receipt.
He said that to combat this new mode of illegal lottery, he is proposing the introduction of a new criminal offense under the National Lotteries Act. This offense mirrors Section 19 of the Gambling and Betting Act but criminalizes the receipt of a bet, issuance of a ticket, or payout of any monies.
Tancoo said that the offense should be heavily criminalized and carry a fine of TT$250,000 and imprisonment for three years. Alternatively, on conviction on indictment, it should result in a fine of three million dollars and imprisonment for seven years.
“The NLCB’s evidence of the results and who are authorized agents would be prima facie evidence for these matters, therefore allowing the NLCB to give evidence to the police that can support criminal prosecutions,” Tancoo said, adding “this would enable more NLCB input in fighting against illegal lotteries”.
Meanwhile, Tancoo said that owing to a lack of audits and the broad interpretation of the NLCB Act, the NLCB has been able to retain tens of millions of dollars accumulated over the years.
He said to combat this phenomenon and allow the government better access to NLCB’s revenues, it is proposed that NLCB make quarterly payments to the Consolidated Fund, as opposed to annual.
He said the NLCB would be subject to financial limits set by the Minister of Finance concerning various items of expenditure.
“This would ensure that a hard and fast budget by the NLCB would be in place, resulting in better control of revenue retention by the NLCB,” Tancoo told legislators.
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