It's a place where dreams are made and hopes shattered. Fluorescent neon lights, large poker tables and rows of shiny slot machines entice. Smiling waitresses stand by ready to serve. Casinos, or members clubs as they are known in T&T, have rapidly mushroomed throughout the country, becoming popular recreation spots. In 2007, then Prime Minister Patrick Manning threatened to shut down the gaming industry, claiming they were contributing to a breakdown in family values and providing an easy front for crime. Four years later, the industry is yet to be regularised.
Manning made another impassioned call to shut down the industry at a news conference at his San Fernando East constituency office two weeks ago. He also asked why Government had failed to use the state of emergency to crack down on members clubs. "We agreed to a five-year phase-out period. But since the May 24, 2010, general election there has been a proliferation of casinos throughout the country," Manning said. Has the casino industry been a boom or bust for T&T's economy?
Abuse of Private Members' Club Act-Cadiz
There are close to 75 casinos in T&T and they operate with no regulations, said Minister of Trade and Industry Stephen Cadiz. "That tells me something. When you see a business like that just take off it sends a very clear message that there is an awful lot of money to be made in it. "It also says there is no regulation whatsoever and people are setting up casinos in backyards, in residential neighbourhoods, in downtown Port-of-Spain. "When you see it mushrooming like that it says things are moving at a pace and there is something that is just not right," Cadiz said.
The minister said casino owners have avoided paying taxes and questions have been raised about their hiring practices and the working conditions of employees. "The casino industry has been operating in a very unregulated manner since it started. Gambling has been going on in T&T for centuries but the current regulations under which the casinos have been operating are being abused under the Private Members' Club Act," Cadiz said. Spin-off effects, such as gambling addiction, are of serious concern to government, he said. "With the industry being unregulated there is also the problem of money laundering. "The Government will have to take a decision to regulate this industry and that is exactly what it is, it is an industry."
According to Cadiz, some 10,000 people are employed by casino owners and those jobs are "generally good paying." "There are a number of benefits from the better run casinos when you speak to the employees. The wages are very acceptable and very favourable. "If you take Trinidad and Tobago, the physical size of the country and the population with in excess of 75 casinos operating . . . In Singapore, for instance, which has three times our population, there are only two casinos," Cadiz pointed out. What is the role of the Trade Ministry in the casino industry? Cadiz said since the gambling industry could be equated to an employment industry, it falls under the scrutiny of the Trade Ministry. "Casino gambling industry is also part of a tourism plant so that's another consideration we would have to take in.
"How does it affect tourism? Can it boost tourism? There are the other aspects of casino gambling, some people say we shouldn't have it at all," Cadiz said. Asked checks were being made to ensure foreigners employed with local casinos had proper documentation, Cadiz said the Government was yet to implement such initiatives. "We haven't reached close to that. We haven't gone that far as yet," he said. A gaming commission established for all aspects of gambling is one recommendation from the Trade Ministry. "It would not only be responsible for licensing and for the collection of taxes but it would be the regulatory body for casino gambling to ensure that casinos operate within the regulations that Government would set."
Dire repercussions from closure
Shut down casinos and the country will not only be saddled with additional unemployment but also a higher crime rate. That is the warning from president of the Trinidad and Tobago Members' Club Association, Sherry Persad, who agreed there was urgent need for regularisation. She said it was difficult to put a price tag on yearly profits but admitted the industry generates millions per year. Persad said the industry had yielded multiple benefits and she predicted that gambling could market T&T as a major tourist destination. Persad, who is also the director of human resources and public relations at the Ma Pau Members Club, said such facilities are governed under a recreational club license. "Although there may be casino like activities, we do not have a license for a casino. We have no casinos in Trinidad, we have members clubs," Persad explained.
That industry directly employs some 7,000 people, the majority of whom are single mothers from depressed communities. "We also have some 30,000 dependents on that industry. We also have lot of supplementary people meaning local entertainers, caterers and taxi drivers," Persad added. She said opportunities were provided to employees who couldn't even finish their basic primary school education. "We gave them that opportunity to earn a decent salary. We not only hire but we train and give our employees additional skills. We also give back to the country through our charity drives," Persad said. She said regularisation was urgently needed as employees were currently debarred from obtaining bank loans and they were deemed "illegal." "We pay Government taxes on all this equipment yet we are deemed to be illegal. Nobody wants to work in an illegal industry. What about our employees, they can't get a loan," Persad added.
She said taxes were paid according to the different types of equipment. A slot machine, Persad, explained was taxed around $15,000 annually by Government. In a bid to hasten the regularisation process, the association hired a lawyer to draft proposals which were forwarded to Attorney General Anand Ramlogan late last year. Persad said if the casino industry was to be shut down, bars should also be closed. "When we talk about addiction there are many forms of addiction. There are those on top like alcoholism and cigarette smoking and gambling falls way below," she asserted. Commenting on concerns that the industry could face closure, Persad warned that gambling would continue underground.
"The industry is going to go under, meaning it is still going to happen, maybe in somebody's house, maybe in a basement somewhere. "That is going to make the problem even worse." Asked if casinos were generally used as a front for prostitution and white collar crimes, Persad, who has been in the industry for the past 18 years, said she has heard of such claims. "We don't have any problems with any of our members within our association. There may be such problems but I am not aware of them. "Anyone who has that information by all means take it to the authorities."
Casinos hailed by single parents
Ayanna Francis, 30, of Mentor Alley, Laventille, is a reception supervisor at the Ma Pau Members' Club. Her job is to greet clients as they enter the club. The starting salary, she said, compelled her to join the gambling industry. "I'm from Laventille, what people would call a high risk area. I'm a single parent, my daughter's dad was shot and killed four years ago. "With my job I have been able to take care of my daughter and help my mom. I have been afforded a lot of concessions at my job to help my family live a much more comfortable life and have a better standard of living," Francis said. She said many single parents like herself and people who have just left school have been able to get lucrative jobs in the industry.