The Goan: Don’t you agree that the casino industry needscontrols. To essentially monitor inflow of funds, which we suspect to be blackmoney?
Shrinivas Nayak: If money stuffed in cupboards come into theeconomy and benefits the economy and our industry what is wrong. We are notdoing anything illegal. People who can afford to spend money do so. We are notmoral guardians or a custodians of society. Moreover, the FinancialIntelligence Unit of Government of India is monitoring every transaction and weare send them a confidential report. Everything is done legally with maximumtransparency. No one can expect more from us.
TG: There have been several moves towards making gamingregular. The Nevada Gaming authority has set international benchmarks whereantecedents of casino employees as well as players are recorded and monitored.While banks follow a system called KYC(Know Your Customer), shouldn’t a gamingauthority ensure that?
SN: There are already regulations in force and KYC norms arefollowed. On the other hand all our neighboring countries like Sri Lanka,Nepal, Singapore, Malaysia, and Macau, operate without following any norms orcorporate responsibility.
Illegal gambling in the form of Matka and sports betting isthriving in this country, while we are doing legitimate business by followingall laws of the land. Casting aspersions against the industry without havingany concrete evidence will not only lead to misleading to public and governmentauthorities but also would cause irreparable damage to the industry andcredibility of the owners and employees of the casino industry.
TG: But the casino industry has thrived without controls?
SN: It is absolutely wrong to even suggest such things.Compared to other parts of the world, we are still in an infancy stage and arelimited and restricted. We have been demanding an effective gaming commissionfor over a decade. Since we are transparent, we have nothing to fear. Wewelcome any kind of regularization or control. If there is no police station inthe village, villagers can’t be called thieves. There should be a policestation and we want it.
The new government has amended the act and announced agaming commission. We are awaiting for a pro-active, transparent gamingregulation commission in the larger interest of industry, owners, employees andthe tourism industry of Goa.
TG: The thrust of our investigations was on junket operatorswho casinos deal with. These junket operators have deals with casinos whoprovide money/chips for big players. Your comment.
SN: It’s a fancy claim without any substantiation. There areno evidences. I will not be able to make any comment until and unless someonecomes up with some concrete evidence of existence of such so called 'Junket'operators and their transaction At apersonal level if someone facilitatessome money to the others outside the casino, we are neither responsible for itnor do we subscribe to such activity.
TG: How can you deny the existence of junket operators when2 junket operators have been officially recognised and given legal status inone of the biggest casinos in Singapore?
SN: As I said earlier, as compared to Singapore, we are verysmall and still in the initial stages. The size of one casino in Singapore'Sands' is bigger than all casinos put together in Goa in size and turnover.There, the whole country is promoting the industry as a major attraction fortourism. Here we don't even recognize the existence of the industry. There isno comparison.
TG: Let’s get to finances. At the end of the day Casinos aremaking huge profits. Can you take us through the broad finances in terms of howmuch the industry spends and earns?
SN: The industry is paying 120 crore revenue to the stategovernment in F. Y. 2012-13, and barely trying to survive After a very steep increase in license feesto 2.5 crore and entertainment tax to 15%, already 5 land casinos are closedand another 5-6 are going to close as and when their licence fees become due.
Similarly two out of 6 off shore casinos are closed down and2 out of balance 4 are barely operating. The industry as a whole makes a grossgaming revenue of 300 to 350 crore annually. Out of which, approximately 120crore is taken away by state government in the form of entertainment tax,licence fees and entry tax. Rs 50 to 75 crore is our net profit, which isapproximately 20% of the gross earning which is nominal compared to nearly 500 croreinvestment.
TG: But is there a way to actually monitor the total valueof chips given out? Is it monitored? Can it be monitored? And importantlyshouldn’t it be monitored?
SN: Every issue of chips are properly monitored with properchecks and balance mechanism. it is foolish to have improper or week monitoringsystems to save 15% entertainment tax, when all 100% can by siphoned off bystaff and players if there are no systems. Besides mechanism and documentation,there is a continues surveillance of every transaction carried out andfortunately in Goa,
TG: There are stories abound of casinos, in its urge to getbusiness, luring big rollers with women. The sleaze nexus includes casinos, bigplayers and luxury hotels.
SN: These allegations are not worth answering. We don’t needwomen to promote our business. If we run clean gaming in a familyatmosphere we will have betterresults. Making such kind of allegationwould not only cause disrepute to the industry but also cause irreparabledamage to the female staff from reputed families working in casino industry.
So many sex rackets have been busted in last 6 months inGoa, in various massage parlors, guest houses, small time hotels, etc. but noteven a single was directly or indirectly co-related to casino industry
TG: What isyour prescription for this industry carrying on in a clean, transparent manner?And is this a vital arm to enhance Goa’s tourism prospects
SN: Industry in already running in clean and transparentmanner as per international gaming standard. However, we welcome any kind ofgovernment or non-government efforts to make it more transparent if the needbe.
