The facts about Jamaica's lottery licences
Vitus Evans
Sunday, August 16, 2020
There continues to be some misunderstanding in regard to the matter of issuance of lottery licences in Jamaica. As such, we are compelled to clarify certain points to ensure that all Jamaicans have the most accurate information on this matter.
The operation of businesses in the lotteries market, and gambling in general, is regulated in Jamaica by the Betting, Gaming & Lotteries Commission (BGLC). The commission is designated under law (the Betting Gaming and Lotteries Act - BGLA) as the sole authority in Jamaica to receive and review applications for lottery licences in Jamaica.
Any entity which desires to enter the lottery market may make an application at any time to the commission and, if found to be fit and proper, the commission is obligated to grant it a licence, but it may operate only if approval is given.
The lottery licence application process is rigorous and cannot be fast-tracked for any applicant's benefit.
The process is designed to protect consumers and the country from unfit entities entering the market, whether as a licensee or service provider. This is why the law mandates that the commission ensures the people behind any commercial applicant are fit and proper.
Any company that is granted a licence is then subject to further scrutiny by the commission as their service providers must meet the due diligence checks of the commission. In this regard the commission engages independent international and reputable third-party specialist investigators to conduct the background review.
The processes carried out by the BGLC to regulate the lottery sector have been the subject of a comprehensive independent review. In his review, former contractor general, member of the Integrity Commission and chairman of the Fair Trading Commission, attorney-at-law Dr Derrick McKoy, CD, confirmed that the practices of the BGLC are in keeping with the Public Sector Corporate Governance Framework, and in accordance with the highest standards of international gaming industry regulatory standards.
With specific reference to Mahoe Gaming Enterprises Limited's lottery licence application, Dr McKoy found that the application and its treatment were consistent with the BGLC's policies, the applicable laws and regulations. Further, Dr McKoy concluded that the application by Mahoe has not benefited from any preferential treatment by the BGLC.
The BGLC has maintained that it can only be guided by the law in its consideration of prospective licensees. As such, private companies under the commission's regulatory oversight cannot mandate the criterion of new entrants.
The lottery licence process has been challenged in court by Prime Sports (Jamaica) Limited, a subsidiary of Supreme Ventures Limited, which markets and brands lottery products on behalf of Supreme Ventures Limited. The company sought to compel the BGLC to conduct a feasibility study into the viability of granting new lottery licences and sought to prevent the BGLC from granting a lottery licence to Mahoe Gaming & Entertainment Limited or any other company.
The BGLC underscored to the court its adherence to the laws of Jamaica and the policies developed by the BGLC.
In a 68-page ruling the Supreme Court of Jamaica refused the orders sought by Prime Sports. The court conducted a comprehensive review of the BGLA and stated in paragraph 112 that:
“In so far as operation of lotteries is concerned, the objective of the BGLA is intended to achieve the promotion of a sanitised lottery market. To achieve this objective, not only is there antecedent vetting of applicants and proposed premises or medium for the conduct of lotteries, there are facilities in place to ensure that once admitted, operators continue to walk along a straight and narrow road. To this end the BGLC, the sector gatekeeper and watchdog, is endowed with powers to conduct quasi-judicial hearings, exercising the powers of a parish court judge to call for documents and examine witnesses.”
At paragraph 139 of the court's decision it was stated that “the licensing regime does not require the BGLC to, as a condition precedent to a grant of a lottery licence, consult an existing lottery licensee or make investigations and surveys under section 5 [of the BGLA] before it grants the licence”.
Subsequent to the ruling of the Supreme Court, Prime Sports sought to prevent the BGLC from granting a licence pending Prime Sports's appeal to the Court of Appeal. A judge of the Court of Appeal rejected their application.
The judge stated at paragraph 67 of her judgement that Prime Sports does not have a good and arguable appeal. The judge, considering this and other factors, rejected the idea of restraining the BGLC from granting a licence pending an appeal before that court.
The Court of Appeal may be considering an appeal at a later date and the BGLC will maintain, as it has, that it is committed to following the law.
Today, there are three entities that have a lottery licence. Only one is approved to promote lotteries.
In 2011, a lottery licence was granted to Goodwill Gaming Enterprises. In July 2019 BGLC received an application for a lottery licence from Mahoe Gaming Enterprises Limited. Having successfully cleared the due diligence in order to receive a lottery licence, that application was approved for a licence by the board of commissioners on July 24, 2020.
Both Goodwill and Mahoe must now satisfy a number of conditions before the BGLC grants approval to begin commercial operations.
In all deliberations and actions the BGLC is guided by the mission “To enable a viable and reputable gaming industry by balancing the interests of providers, consumers, the general public and Government”.
For details on the lottery licence application process, visit: http://bit.ly/BGLCLotteryLicenceApps.
The report of the independent review of the lottery licence application process can be found at: https://bit.ly/LotteryLicenseProcessReview
The judgment of the Supreme Court and the Court of Appeal can be found at https://www.bglc.gov.jm/?q=Special_Reports.
— Vitus Evans was appointed executive director, BGLC in May 2017. He is an attorney-at-law called to the Bar in Jamaica, the UK and Eastern Caribbean with over three decades of experience in corporate governance and law. He serves on multiple boards in the private and public sectors, is a trustee of the International Association of Gaming Regulators, St Lucia's Honorary Consul to Jamaica and a past president of the Jamaica Exporters' Association.