GREAT BAY--Government currently collects approximately Cg 8 million annually from the gaming sector, while acknowledging that the existing regulatory and fiscal framework needs to be modernized to determine whether the sector is contributing adequately to the country’s finances.
The information was provided to Parliament in response to questions concerning revenues generated from casinos, lottery booths and other gaming establishments, as well as the effective rates applied to operators.
The Ministry explained that casino and lottery operators are subject to license fees under the gaming ordinance. It did not characterize the current system as one based on a general gaming tax rate, but rather on fees established under the existing legal framework.
Members of Parliament questioned whether the approximately Cg 8 million collected each year adequately reflects the level of economic activity generated by casinos, lottery operations and other gaming businesses.
Government responded that the amount currently collected reflects the existing legislative and fiscal framework, but said determining whether it represents an adequate fiscal contribution from the sector requires further assessment.
Government also made clear that the present level of collections should not automatically be viewed as the benchmark for what the gaming sector could be expected to contribute under a future regulatory system.
Government said it recognizes that the current regulatory framework requires modernization and pointed to the ongoing gaming reform process.
The reform includes the development of a new licensing and supervisory framework, under which applicable fees and supervisory levies are being assessed. According to government, the objective is to ensure that the gaming sector is effectively regulated, contributes appropriately toward the cost of that regulation and that the broader fiscal interests of St. Maarten are safeguarded.
The establishment of the St. Maarten Gaming/Gambling Authority, SMGA, forms part of Country Package Measure H2 and is being coordinated by the Ministry of Tourism, Economic Affairs, Transport and Telecommunication, TEATT, through the SMGA Workgroup.
Government reported that the SMGA Workgroup has completed its technical work, approved the technical acceptance of the Business Case and recommended that the draft Kansspelverordening proceed into the formal legislative trajectory.
Until the authority becomes operational, the Inspectorate of Economic and Transport Affairs, IETA, will continue carrying out its statutory inspection and enforcement responsibilities under the existing legal framework.
The responses indicate that the future financial contribution of the gaming industry could be reassessed as part of the wider reform process, although no new rates or revenue targets were provided.
The Ministry also confirmed that the moratorium on the issuance of casino licenses remains in effect.
When asked how many casinos are expected to open during the next 18 months based on existing license status, the Ministry stated that no casinos are slated to open during that period.
