HUNDREDS OF JOBS could be on the line unless slot machine operators can persuade Government to reduce “the substantial” licensing fees on their businesses.
Most of the operators contacted by the SUNDAY SUN would not go on the record, but Paul Johnson, who operates the Lucky Horseshoe arcades in Warrens, Worthing and Bagatelle, said he already had to remove more than 50 machines since the new taxes were introduced in 2009.
“Rather than cut staff, I have been cutting back on my machines, but I can tell you that operators in the industry are feeling the pinch, just like other businesses in these trying economic times,” said Johnson, who is also vice-president of Barbados Association of Slot Machine Operators (BASMO).
“Just this morning [Friday], I had to take out some of the machines at the Bagatelle operation,” he added, noting that he now had 156 machines in operation compared with the 214 before the new taxes were introduced.
Under the amended Betting And Gaming Duties Act, arcade operators are now required to pay a licence fee of $15 000 per machine annually and $300 000 per arcade – up from $10 000 and $220 000, respectively.“The resulting combination of less income, more competition and a recession means that many operators are struggling to make ends meet,” Johnson said.
“Till now, we have been reducing the number of machines without cutting staff, but it would be unfortunate if we next have to cut staff. We are hoping that Government will intervene to help us save jobs.
“In fact, I would go as far as to say that if [Government] does not intervene at this juncture, our very existence hangs in the balance. I fear that we will not make it through the summer under the present circumstances. I fear job losses will be inevitable.
”It is understood that the association has been knocking on the door of Minister of Finance Chris Sinckler unsuccessfully in trying to get Government to reduce the fees.
Indeed, one operator who did not want his name mentioned, said he would rather not comment at this time because he did not want to jeopardize the ongoing discussions.
The SUNDAY SUN also tried to reach the minister Friday and yesterday, but his cellphone went to voicemail and there were no responses to texts.
A source close to the minister, however, said he was looking into the matter, adding that Government was concerned about the potential job losses in an industry that directly and indirectly employed more than 1 000 people.
Johnson’s group of arcades employs up to 350 people.
Overall, there are more than 1 300 machines here – and this does not include the more than 300 video lottery terminals (VLTs) that came into operation three years ago.
Operators of VLTs do not pay as much in licensing fees, although Government amended the legislation in 2010 in what the late Prime Minister David Thompson described as a move to “level the playing field”.
