[UPDATED] Government to stiffen penalties as illegal gaming drains billions

IN an effort to stem the leakage of billions in revenue, stiffer penalties for “whe whe” operators and other illegal gaming houses are on the cards.

Finance Minister Davendranath Tancoo, in his budget presentation on October 13, gave this warning as he revealed that underground betting schemes were costing the state heavily.

Tancoo said the National Lotteries Control Board (NLCB) earns almost $3 billion annually, but its profits are being eroded by an illegal parallel market worth an estimated $9 billion.

“Illegal lotteries continue to impair the NLCB’s profit margins,” he said.

“These illicit activities also rob the government of income tax, corporation tax, windfall tax and direct revenues from NLCB’s available surpluses.”

He added that such operations are often linked to money laundering, black-market activities and human trafficking.

To combat the problem, Tancoo said the government plans to amend the Gambling and Betting Act to raise fines and introduce new offences targeting modern online and receipt-based betting schemes.

“I propose to increase existing penalties under Sections 19, 20 and 21 of the Gambling and Betting Act,” he said.

“As an example, under Section 19, this penalty will be increased to a fine of $250,000 and to imprisonment for three years; or (b) conviction on indictment to a fine of $3 million and to imprisonment for seven years.”

He added that this would be “consistent with the new penalties that will be implemented as soon as the Gambling (Gaming Betting and Control) Act is proclaimed.”

The minister said modern illegal lotteries often use the results of NLCB’s official draws to issue “receipt-type” tickets, resembling grocery slips, and that this has required new legislative tools.

The receipts, Newsday has observed, often reflect false purchases, usually of food and beverage items.

To close that loophole, he announced a new offence under the National Lotteries Act to criminalise the receipt of bets or payouts based on NLCB results by anyone who is not an authorised agent.

“The offence should be heavily criminalised and carry a fine of $250,000 and imprisonment for three years, or conviction on indictment to a fine of $3 million and imprisonment for seven years,” Tancoo said.

He said the NLCB’s data on authorised agents and draw results would serve as prima facie evidence to assist police in criminal prosecutions.

In addition to strengthening its enforcement role, the NLCB will now be required to make quarterly payments into the Consolidated Fund, allowing the Ministry of Finance to exercise closer oversight of its revenues and expenditure.

This, Tancoo said, would end the practice of accumulated surpluses being retained indefinitely.

He also proposed that the board operate under “a hard and fast budget,” which would “result in better control of revenue retention by the NLCB.”

The gaming penalties form part of what Tancoo said is a wider fiscal drive aimed at improving compliance and boosting government revenue collection.

During his presentation, Tancoo announced several other increases in fines and fees, including for errant drivers and regulated industries.

Fines for careless driving will rise to $15,000, while the penalty for driving while disqualified will increase to $5,000.

Drivers caught under the influence of alcohol will face fines of $15,000.

The Environmental Tyre Tax will move from $3,000 to $5,000, and the application fee for pesticide registration will rise from $2,000 to $4,000.

Fines for brewers will also increase from $4,000 to $10,000.

The government expects these measures, alongside proposed legislative reforms and tighter institutional oversight, to close gaps in collection and reduce revenue losses across multiple sectors.

The minister linked the new fines to the administration’s broader fiscal agenda, which he said was focused on “building economic fairness through accountable fiscal policies.”

As part of that policy direction, state agencies like the NLCB, Inland Revenue Division and Customs and Excise Division are to be modernised to prevent leakages and strengthen compliance.

This story has been adjusted to include additional details. See original post below.

IN an effort to stem the leakage of billions in revenue, stiffer penalties for "whe whe" operators and other illegal gaming houses are on the cards.

Finance Minister Davendranath Tancoo, in his budget presentation on October 13, gave this warning as he revealed that underground betting schemes were costing the State.

Tancoo said the National Lotteries Control Board (NLCB) earns almost $3 billion annually, but its profits are being eroded by an illegal parallel market worth an estimated $9 billion.

“Illegal lotteries continue to impair the NLCB’s profit margins,” he said.

“These illicit activities also deprive the government of income tax, corporation tax, windfall tax and direct revenues from NLCB’s services.”

He added that such operations are often linked to money laundering, black-market trading and human trafficking, and he described these networks as a major drain on legitimate economic activity.

To combat the problem, Tancoo said the government plans to amend the Gambling and Betting Act to raise fines and introduce new offences targeting modern online and receipt-based betting schemes.

“I propose to increase existing penalties to a fine of $250,000 and imprisonment for three years, or on indictment, a fine of $3 million and imprisonment for seven years,” he said.

The ministry is also set to create a new criminal offence under the National Lotteries Act, empowering the NLCB to assist police with evidence against unauthorised agents.

Tancoo added that the NLCB will now be required to make quarterly payments into the Consolidated Fund, allowing closer oversight of its earnings.