Thursday Nov 14, 2024
Thursday Nov 14, 2024
Wednesday, 28 August 2013 00:00 - - {{hitsCtrl.values.hits}}
The attire is of little consequence but the green backs collectively are. It is a proven fact that organised and well-run casinos are cash cows that generate colossal revenue. In almost all countries the casinos are run by the private sector but the government controls rigidly the dollar intake, by empowering recognised banks to monitor the encashment that are deposited in sealed boxes.
A very large percent of the takings are revenue to the government. From the balance a small percent is for the operators but large enough for Donald Trump to build a skyscraper in Park Lane. A still smaller percent goes back to the gamblers by way of prizes and million-dollar jackpot bonanzas in the USA.
"The latest is that permission has been granted for Kerry Packer to operate a casino in Colombo not heeding any of the above arguments and not taking into account the important issue of revenue collection as in other countries, which should be made mandatory. Instead Kerry Packer is officially given tax-free benefits, which he could remit abroad, depriving Sri Lanka of valuable forex. It would have been prudent if the Sri Lankan operators were requested to expand on the lines and standards of international operations"
Sri Lanka
Sri Lanka is perhaps the only country in the world that permits casino operations and allows the operators the benefits of accruing huge profits due to the lack of revenue controls. They are free of corporate tax, vat and betting tax.
But are casino operations justifiable in Sri Lanka? Some areas that need careful examination are the moral and religious considerations. But 
more importantly, is there substantial economic upliftment to justify its operation?
The moralist/religionist would say:
nIt is evil. It leads to crime
nGambling is as an avocation of the loafer, the idler.
nIt is dysfunctional and undermines disciplined work habits
nIt is against our cultural, ethical and religious sentiments.
Then the important question, is there economic upliftment to a country/state?
nYes – it is a proven fact. It could be a source of considerable revenue for the Government that could defray budget deficits and, still more will be left for development of under developed areas as what has been done in the Indian Reserves and Atlantic City in USA. Freeport in Australia was developed after the casinos erupted.
nThey could be made suitable for tourists,
nAnd, would generate direct and indirect employment
Arguments
In this permissive epoch, when modern thought supports exposure in favour of curtailment for the developing mind, a liberal view is justified.
Nevertheless, can our society steeped in prayer and religious activities, participating in pinkamas and pujas, constantly invoking religious blessings even in mundane matters, advocating uprightness in living, vindicate moral turpitude of this nature? Only if there are patent and tangible benefits to the country.
In Sri Lanka is there revenue generation to the Government? No. Casinos are not legalised and Government revenue is only a small licensing fee.
Are they stimuli to the tourist industry to justify foreign exchange earnings? No. The bulk of Sri Lankan tourists are budget travellers. Today only a handful patronises casinos – it is by the way.
Does it create massive employment opportunities? Yes, if organised. As of today employment is limited. Casinos are simply hardcore, unadulterated gambling in opulent and plush surroundings. Exceptionally in Sri Lanka, they are unrestricted and uncontrolled by government authorities permitting tax-free and undeclared earnings to the operators.
Casinos could be justified only if betting in casinos is legalised and a high tax imposed on the collections, like in other countries. The major income shall be the Government’s. For logistic reasons, casinos should be located in clusters in specially designated areas like an island in Bolgoda or Madurangana in the Bentota area or may be the island in the Beira.
A boardwalk in Galle or the Fort could be also be made into an ideal surrounding for a casino. They could be developed into places of fun extravaganza, like in Macau or Sun City in Bopustana and other areas with abundance of water sports, restaurants, plush hotels, etc. The boardwalk in Galle too is ideal for such a development.
The latest is that permission has been granted for Kerry Packer to operate a casino in Colombo not heeding any of the above arguments and not taking into account the important issue of revenue collection as in other countries, which should be made mandatory. Instead Kerry Packer is officially given tax-free benefits, which he could remit abroad, depriving Sri Lanka of valuable forex. It would have been prudent if the Sri Lankan operators were requested to expand on the lines and standards of international operations.
(The writer is Chairman of Ceylon Biscuits Ltd.)
