By Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com

PARAMARIBO, Suriname: In an attempt to regulate casinos the Suriname government has submitted a bill to parliament to increase tax on casinos by 300 percent, a move that will seriously harm the gambling industry, casino owners here claimed.

According to Finance Minister Humphrey Hildenberg, initially he had suggested a much higher increase, but eventually he submitted a 300 percent tax hike to parliament.

This week parliament continued debate over amending the Casino Tax Act. Currently 21 casinos are in business; too many for a population of 490,000, several members of parliament claimed. It was disclosed that 16 of the 21 gambling houses are violating their licences, but according to the Association of Casino Owners (VCS) only 13 casinos are in operation.

Parliamentarians suggested shutting down of casinos which are in violation, but coalition MP Jules Ajodhia, warned against drastic measures. He claimed that an abrupt shutdown would have a significant social impact, since some 2,000 individuals would lose their jobs.

He also pointed out legal obstacles that could raise, since according to Ajodhia authorized government bodies implemented policies which have contributed to the violations.

Ajohia, Suriname’s former Vice President, also argued that closing the casinos internationally could have serious ramifications for Suriname, noting that most of the casinos are owned by foreign investors. The government also stands to lose significant income if the casino industry is terminated.

Several MP’s argued that closure of the casinos to address possible gambling addiction, shattering of families and households and other negative effects of the gambling is not the way to regulate the industry. Tougher actions or sanctions which could force gambling businesses to close will push gambling into illegality, where authorities won’t be able to take actions, parliamentarians claimed.

In an interview with Radio ABC, Kathleen Brandon, secretary of the Association of Casino Owners, claimed that the proposed tax increase will force all casinos to close since they won’t be able to realize enough income to pay the higher tax.

“Currently there are several casinos which are barely able to pay taxes,” said the VSC board member. For a slot machine casinos have to pay US$145, for each roulette table US$1,450, and for a blackjack table US$1,090 every month.

Opposition leader and former President Jules Wijdenbosch, however, told parliament that, instead of presenting new laws to regulate the gaming industry, the government should establish a casino gaming board.

It was Wijdenbosch who, during his term of office from 1996-2000, issued over 21 casino licenses. He argued that the gaming policy of his government was part of a larger plan to boost the tourism sector.

Since this policy was not continued after the Venetiaan administration came into office in 2000, the casino industry started to stand on its own, said the former president, who defended his decision to grant casino licenses.

Wijdenbosch noted that the Suriname Tourism Foundation, in his plans was supposed to become a tourism authority and that hotels would be established in the Commewijne District as part of a larger regional development plan linked to the construction of the bridge over the Suriname River, connecting the capital Paramaribo with Commewijne.

According to Wijdenbosch, the government should consider the recommendations of the proposed casino gaming board before making any decision over gaming industry.

Debate in parliament over the Casino Tax Act will continue next week.