This is an abridged version of Dr Roy McCree's presentation at the Policy Conference on Casino Gambling in April 2009 at UWI, Mona.

Over the last five years, the subject of gambling in general and casino gambling in particular has emerged as a major public, as well as public policy issue in several countries of the Caribbean. The recent online gambling dispute between Antigua and the United States served to renew public attention on the importance of gambling, particularly in tourism-based economies.

In Trinidad and Tobago, the subject of gambling also stirred controversy in 2006 when the Government announced its intention to ban casino gambling, as well as online games of chance such as the national lottery. In this country, public policy and public attitudes to gambling in general, and casino gambling in particular, have been historically founded on criminalisation and contradiction.

The gambling industry consists of two main sectors: a state sector and a private sector. In the state sector, there are four major types of gambling activities that are managed and regulated by a central authority called the National Lotteries Control Board (NLCB), namely the National Lottery, Lotto, Play Whe, and other online games (Cashpot, Instant Lottery, Pick Two).

In the private sector, there are five major gambling activities or arenas of both a legal and illegal nature: Horse racing (legal), Off Track Betting (local and foreign racing inclusive of Dog Racing) (legal), the Chinese derived game of Whe Whe (illegal), Recreation Clubs (legal) and casinos (illegal).

The direct involvement of the Trinidad and Tobago state in gambling commenced in 1968 with the introduction of the national lottery. However, the private organisation of gambling preceded this by over 100 years. In this regard, two particular forms of gambling stand out: the elite or upper class driven sport of horse racing and the working class driven/organised game of Whe Whe. Whe Whe is a Chinese derived numbers game which was introduced to Trinidad in the 19th century by Chinese immigrants.

HORSE RACING

While the folk or lower class form of gambling was illegal, the sport of horse racing, which was organised and patronised by the social elites was, since its beginnings in 19th century Trinidad, never illegal. The Trinidad state aided the development of the horse-racing industry in four major ways:

Accepting it as legal;

Facilitating the acquisition of necessary lands and infrastructure for the conduct of racing;

Facilitating its regulation and control by providing the necessary legislative framework for the creation of agencies to oversee its operations and development, and

Providing a subsidy to finance the operations of the TTRA, the horse-racing regulatory body.

As a result of this state support, today one can speak of a relatively thriving horse-racing industry. It is estimated that the industry provides employment for around 5,000 workers. In Jamaica, the horse-racing industry is said to employ "upwards of 20,000 people".

The legislative and material support which the state provided for horse racing was also provided for the national lottery that was introduced in 1968 by the then Government. The introduction of the national lottery just six years after Independence in 1962 was to mark the state's formal entry into the business of gambling. In 1994, some 26 years after the introduction of the national lottery, the state's involvement in gambling intensified with the introduction of two major computerised games: (1) a national lotto and (2) the repackaged game of Whe Whe, which was renamed 'play whe' in an attempt to distinguish it from its outlawed folk predecessor.

cash cow

In terms of revenue, the new online games have become a cash cow for the Government with revenues averaging around one billion TT dollars per annum. The state's decision to enter the market for gambling therefore has paid off quite handsomely.

Unlike horse racing and other state sponsored forms of gambling, however, casino gambling remains illegal. In addition, based on a 1999 survey, it was found that only 17 per cent of the population supported casino gambling, compared with 37.6 per cent for Play Whe and 54.7 per cent for lotto. However, this situation appears to be changing for, despite its supposed illegality, casinos have mushroomed over the last 10 years under the guise of Private Members Club (PMC), which is legal under the Registration of Clubs Act. Under the Gambling and Betting Act, it is forbidden to own, establish, or occupy any premises which can be considered a "common gaming house". A gaming house is defined as "any premises kept or used for the playing of any game of chance for winnings". However, PMCs, which can be established under the Registration of Clubs Act, were exempt from this provision through Section 10 of the Gambling and Betting Act. It was this loophole that facilitated a profusion of casinos under the guise of Private Members Clubs, since it allowed them to operate slot machines and tables.

It is estimated that the casino sector provides employment for some 7,000 workers and "millions in revenue" to the Government through the taxes and duties on slot machines and game tables.

In 2006, however, the Government made it quite clear that it does not support casino gambling and other online games of chance and signalled to the national community that it "is moving to eliminate the entire system." Alluding to "global research findings", this position was justified in terms of the negative effects that such gambling has been shown to have on families, marriages, worker productivity, juvenile delinquency, crime and money laundering.

five-year contract

It is interesting to note that while the prime minister was announcing the Government's intention to close down casinos and online gambling, the National Lotteries Control Board was announcing that it had signed a new five-year contract to 2011, estimated to be valued at US$78 million, with GTECH Corporation of the USA, the company that was responsible for introducing the online gambling games and technology to Trinidad and Tobago since 1994.

Nevertheless, following upon its declaration in October 2006, in June 2007, the Government subsequently made the necessary amendment to the Gambling and Betting Act in order to plug the loophole that previously allowed PMCs to engage in gambling. Under the amendment, any premises where there existed 'a gaming machine' was now considered a "common gaming house".

Although the president of the country assented to the new legislation in July 2007, it remains yet to be proclaimed. Consequently, casinos or PMCs continue to operate and proliferate. In response to these decisions and actions on the part of the Government, casino owners and workers led by the Association of Members Clubs (AMC) and Union of Members Clubs and Lottery Workers (UMCLW) together with other interested stakeholders, launched a vehement public protest which culminated in a public rally. This collective action forced the Government to delay the implementation of its policy by giving casino owners a period of five years to phase out their operations and by offering to retrain workers in order to facilitate their re-employment in other sectors. This is where the situation currently stands.

FUTURE PROSPECTS

If the casino industry is to survive and move from the margins to the mainstream of the gaming industry, there are several critical requirements, which would necessitate closer collaboration with both government and civil society:

It must be decriminalised.

A supportive legislative and regulatory framework must be created to facilitate its decriminalisation, development and to deal with issues such as money laundering.

New research needs to be conducted to understand the level of support for gambling in general, and casino gambling in particular. There is a need to understand why gambling on horses, lotto, Play Whe and lottery numbers is tolerated more than gambling in casinos.

Dr Roy McCree is a Fellow at the Sir Arthur Lewis Institute of Social and Economic Studies, UWI, St Augustine, Trinidad.