BETTING, GAMING & LOTTERIES COMMISSION

Enforcement Division Report

January – December 2003

Functions & Objectives of the Enforcement Division

The Enforcement Division's primary functions include:

• Conducting criminal and regulatory investigations on individuals and groups involved in illegal betting, lottery and gaming activities.

•  Gathering intelligence on organized criminal groups involved in illegal betting and gaming activities.

• Conducting background investigations and making recommendations concerning applications for licences. 

• Arresting persons involved in illegal gaming and preparing evidence for the conduct of cases in Resident Magistrates’ Courts and the First Instance Tribunal.

 The Division’s objectives during the period included:

 Involvement in the Commission’s gaming machines and premises licensing campaign that commenced in January 2003.

Seizing unlicensed gaming machines after operators failed to respond to the Notices and visitations made to premises with these machines. The seizures were designed to have a demonstration effect and communicate the Commission’s seriousness in achieving compliance. Enforcement activities were planned for all 14 Parishes.

Developing a database on all illegal betting and gaming operators.

Undertaking an extensive test betting campaign at a number of licensed betting offices. This exercise was geared towards Bookmakers who are operating contrary to their license by opening their betting offices after the prescribed time, or operating a ‘second book’. 

Building and fostering a closer working relationship with the other divisions to eliminate duplication and to achieve improved efficiency.

 Investigations & Operations

During the period under review a total of 128 operations were carried out, representing a 653% increase over operations in 2002 and by far the most operations ever carried out by the Division in a calendar year. Seventy-one percent (71%) of the operations carried out during the year involved the seizure of unlicensed gaming machines.

Figure 1 gives a monthly breakdown of the operations carried out in 2003 while Figure 2 shows a percentage breakdown of the categories (unlicensed gaming machine, unlawful gaming and illegal betting) in which operations were carried out.  

Figure 1: Monthly Breakdown of operations carried out

Figure 2: Types of Operations Carried Out during 2003

The Division also achieved one of its major objectives of getting one of the major illegal cash pot operators before the Courts, as in August, an operation was carried out at premises owned by Patrick Chang, who is one of the largest illegal gaming operators in Jamaica. Three (3) Xerox photocopiers, fifty-five (55) hand-held calculators, numerous gambling paraphernalia and One Million Two Hundred and Eleven Thousand and Sixty Four Dollars ($1,211,064) were among the items seized during the operation. The case is presently before the Half Way Tree Resident Magistrates Court.

Extensive test betting, started in April, continued throughout the year. The exercise targeted bookmakers who were operating contrary their license by accepting bets on local racing after the prescribed time. A bet-writer at the Champion Betting Company Limited situated at 8 East Street, Old Harbour, St. Catherine was convicted in the Spanish Town Resident Magistrates Court for breaches of the Betting Gaming & Lotteries Act after a member of the Division observed him writing bets on local racing in a non-prescribed voucher book.

A number of other betting offices are now under closer scrutiny by members of the Division, and it is expected that more arrests and convictions will be achieved during 2004 as a direct result of this exercise.

Resulting from the record number of operations, a total of eighty-five (85) persons were arrested, a fifteen (15%) percent increase over 2002 figure. Convictions showed an increase of seventeen percent (17%) to fifty-five (55) persons compared to the forty seven (47) persons who were convicted over the corresponding period last year. Cash seized from illegal operators was One Million Six Hundred and Eighty Thousand Six Hundred and One Dollars ($1,680,601), a six hundred and eighteen (618%) percent increase over last year’s figure of Two Hundred and Thirty Three Thousand Nine Hundred and Ninety Nine Dollars ($233,999).

Court & Tribunal Activities

Court appearances by members during the period were extensive, with visits made to Resident Magistrates Courts across all fourteen (14) parishes.

Fines executed by the relevant Resident Magistrates Courts during the year were Seven Hundred and Eleven Thousand Dollars ($711,000), a thirty (30%) percent increase over last year's fines.

 Tribunal fines during the year were One Million Five Hundred and Seventy Thousand Dollars ($1,570,000), compared to Two Million Seven Hundred Thousand Dollars ($2,700,000) for the previous year.

Charles Off Betting Limited, in a case which was started two years ago, was found guilty of numerous breaches of the Betting Gaming & Lotteries Act committed at one of its betting offices, and a fine of One Million Five Hundred and Sixty Thousand Dollars ($1,560,000) was imposed.

A number of charges emanating from test betting activities resulted in numerous cases being taken before the First Instance Tribunal. These cases, a number of which have already been part heard, will conclude in early 2004.  

Gaming Machines

The identification and seizure of unlicensed gaming machines, as previously reported, was one of the division’s major objectives during 2003. A total of seven hundred and forty nine (749) unlicensed gaming machines were identified.

As depicted in Table 1, ninety (90) gaming machine operations were conducted island-wide, resulting in the seizure of five hundred and fifty four (554) unlicensed machines.  Of this total, forty three (43) machines were dismantled after it was discovered that they were "shells", four hundred and forty and three (443) or seventy-eight (78%) percent were subsequently licensed and returned to the operators. Total revenues realized from these operations were Five Million and Thirty Five Thousand Dollars ($5,035,000).

An average of sixty two (62) unlicensed gaming machines were seized per month over the nine months of gaming machine operations. In July one hundred and twenty six (126) machines were seized, the highest in any month, while thirteen (13) machines were seized during August, the lowest during the period. Figure 3 gives a monthly breakdown of the gaming machine seized.

Table 1

Number of Gaming Machines seized by Parishes: April - December 2003

Figure 3: Monthly breakdown of Gaming Machines Seized in 2003

Total contingent and transport cost for the ninety (90) operations recovered from the operators of these unlicensed machines was Two Hundred and Eight Seven Thousand Dollars ($287,000). Storage fee of Twenty Three Thousand One Hundred Dollars ($23,100.00) was also recovered.

Complaints

A total of one hundred and sixty six (166) complaints were received during the year with the months of September and October recording the highest numbers of complaints with twenty three (23) and twenty four (24) respectively. Figure 4 gives a monthly breakdown of the complaints received.

Forty Seven (47%) of the complaints were received during the last four (4) months of the year, which coincided with the introduction of a fifteen (15%) percent tax on lottery winnings. The Commission is pleased to note a significant increase in the number of complaints coming from members of the public.

Figure 4: Monthly Breakdown of Complaints received by Division during 2003

Due Diligence

With the Commission requiring due diligence investigations to be carried out on all gaming machine applicants who own twenty (20) or more machines, Thirty-Two (32) due diligence exercises were undertaken compared to four (4) in 2002.

 Conclusion

Table 2 highlights the major activities performed during 2003 in comparison with those of 2002.

Table 2

Enforcement Division Major Activities in 2002 & 2003

January 23, 2003