The government of the Bahamas and its casino industry are tussling over a proposed sliding tax structure that could more than double what the Caribbean island nation’s largest gaming resorts currently pay.
Attorney General Carl Bethel said the government intends to impose the new regime “in short order,” according to The Nassau Guardian, the country’s largest daily newspaper.
Once it’s finalized, casinos with gaming revenues up to $20 million Bahamian dollars (BSD$1 = US$1) will pay 20 percent on the total, which is defined as the 30 percent remaining to the operator after a government-mandated payout of 70 percent to players. Rates scale up from there to 50 percent on revenues above $100 million.
The industry, however, has other ideas. Operators, who currently pay a flat 11 percent of win, say the increases will force them to lay off employees and close some locations, and in August, the online sector petitioned the Supreme Court for an injunction against the increases𑁋as well as a new 5 percent stamp tax on gamblers’ deposits𑁋 pending judicial review of their legality.
The government responded by agreeing not to impose the taxes without first negotiating with operators to resolve their issues. Failing that, said the Attorney General’s Office, the two sides will have to fight it out in court.
The Guardian reported the discussions are ongoing.
