Gaming machine fees contributed $18.75 million to the Government's coffers for the first quarter of this year -- a 350 per cent increase on what it pulled in for all of 2002.

ESTIMATING that half the slot machines in Jamaica are unregulated, the Betting, Gaming and Lotteries Commission (BGLC) is on a campaign to bring operators into compliance -- and more revenues to its coffers.

"The commission has significantly stepped up its vigilance with respect to the collection of taxes due from owners of gaming machines," its new chairman, Walter Scott, told reporters at a weekend briefing. "We are seizing machines from owners who are not complying with the law and as a direct result we are seeing greater compliance."

Despite strong lobbying from proponents of gambling, Jamaica does not at present licence casinos, but allows gaming machines for which operators are to pay a tax of $10,000 a year per machine, plus an annual licence fee of $2,500.

SCOTT... we believe that there is much more room for expansion in this area

The gaming industry analysts estimate there are perhaps 12,000 of these machines in the island -- from single machines in small bars to larger banks in casino-style gaming rooms that lack only table games.

However, no one has a clear handle on the contribution of slot machines to gaming industry earnings, which for lotteries ($12.4 billion) and horse racing ($4.6 billion) last year reached $17 billion, against $9.4 billion in 2001.

However, if all levy and licencing fees were paid on all the machines believed to be operated in Jamaica, the BGLC would earn about $150 million from this operation, but now pulls in only a fraction of that amount, although it is this year doing substantially better than in the past.

For instance, the Government during the first quarter of this year earned $18.75 million in gaming machine fees -- a 350 per cent increase on what it pulled in for all of 2002.

"We believe that there is much more room for expansion in this area as only about half of the machines islandwide are accounted for at this time," said Scott, who became the BGLC's chairman in January. "I would like to assure that the commission will be doing its utmost to bring the delinquents within the tax loop, thereby ensuring compliance with the law."

But Scott conceded that the system under which gaming machine owners had to pay their levies and licence fees was cumbersome and the laws governing the sector were out-of-date and in need of upgrading.

"We are fully cognisant that there are many aspects of the law which are archaic and need changing," he said. "We have done our homework and our recommendations for change are now before the minister of finance and we await his contribution."

Scott also disclosed that the BGLC was considering seven applications for the operation of Bingo games, but declined to identify the applicants.

"The BGLC has not as yet taken a decision on these applications for the operation of Bingo games so I cannot say who the licencees will be... and how many of the seven applications before us will eventually get licences," Scott said.

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