New gambling law changes propose stiffer penalties

Government has published proposed amendments to the Gambling Act which could see those convicted digging deeper into their pockets to pay hefty fines ranging from $5,000 to $10,000 depending on the charge.

The new fines are part of proposed changes contained in the Gambling (Amendment) Bill, 2022 which was gazetted this week.

Governor Martyn Roper, speaking on a June episode of the Cayman Compass weekly talkshow ‘The Resh Hour’, made it clear stiffer penalties were needed to control illegal gambling, which has been linked to crimes ranging from robberies to murder, like the shooting death of Harry Elliott.

Elliott, 62, a retired prison officer, was fatally shot on 25 April. His death was linked to a numbers game.

Premier Wayne Panton, in a statement Wednesday on the publication of the amendments and the Proceeds of Crime Act (Amendment of Schedule 1) Order, 2022, said the proposed changes are in line with government’s efforts to foster safer communities in the Cayman Islands, and to disincentivise illegal gambling.

“Over the past few years, our community has seen a sharp increase in the rate of violent crimes linked to illegal gambling, including armed robberies and murder. The rising crime, and hidden societal implications of gambling in general, are enabled through the current legislation that provides little to no deterrence for one-off or repeat offenders,” he said.

The fine for offences under section 4 of the current act (including keeping a common gaming house) is $400 or 12 months imprisonment. An offence under section 5 of the current act (committing an act of illegal gambling) is a $10 fine or two months imprisonment, he pointed out.

Under the new legislation, a statement from the Office of the Premier said, it has also been proposed to add the crime of gambling/crimes related to gambling to Schedule 1 of the Proceeds of Crime Act (2020 Revision).

“Currently, Schedule 1 of the Proceeds of Crime Act (POCA) mirrors Schedule 2 of the UK legislation, with slight changes on where gambling is regulated. By adding gambling to Schedule 1 of the POCA, it makes all gambling offences a lifestyle offence,” it said.

This amendment to the POCA, the statement said, will also allow for courts to make confiscation orders, in the case where someone is found to have taken part in or facilitated illegal gambling activity.

“While there is an obvious link between illegal gambling and the various types of serious crimes resulting from organised gambling, less obvious are the costs to the law enforcement and the wider society,” he said, adding that the social costs at an individual and family level are sometimes referred to as ‘hidden costs’ because they are often misunderstood or overlooked.

“It is therefore imperative that we enact legislative measures to deter gambling and the long-term effects it has on the health and safety of our communities, our integrity as people, and the jurisdiction’s reputation for good governance and upholding the rule of law,” Panton added.

Proposed changes

Under the proposed changes, penalties for a range of general gambling offences – including the use and ownership of premises for gambling, the publication of lottery numbers and dealing with money resulting from gambling activities – could see fines raised from $400 to $10,000 and for the term of imprisonment to increase from one year to four years.

It proposes increasing the $10 fine to $2,500 for the offence of either being found playing in or in a common gaming house and for the prison term to increase from two months to six months.

For the offence of taking part in a public lottery, the legislation is proposing the fine be raised from $10 to $2,500 and the prison term to increase from two months to six months.

It also proposes a significant jump in the penalty for keeping a common gaming house with the fine to be raised from $100 to $20,000 and the prison term to increase from six months to four years.

Similarly with conducting or taking part in a lottery, the legislation is proposing the fine go up from $100 to $20,000 and the prison term to increase from three months to four years.

Gambling activities

Under the proposed changes, any gambling activity involving selling tickets, assembling for lottery results or paying for lottery tickets, could see fines increasing from $40 to $5,000 and the prison term going up from two months to one year.

The bill is open for public comment and is expected to be tabled at the next sitting of Parliament during the week of 5 Dec.

Commissioner of Police Derek Byrne, commenting on the proposed increase in penalties, said it will assist the RCIPS tremendously.

“The increased sanctions and fines for a range of illegal gambling offences contained in the new Bill will act as a very strong deterrent to disincentivise those persons that engage in illegal gambling across the Cayman Islands,” he said.

“This relates to sellers of illegal lottery numbers and persons engaged in illegal gambling and betting, including persons who support or purchase lottery numbers for illegal lotteries. Illegal gambling in the Cayman Islands, in all of its forms, mainly occurs at street level and is very visible in our local communities impacting our most vulnerable,” Byrne added.

The enhanced powers and sanctions provided will assist the police in tackling this problem and going after the proceeds of illegal gambling, and confiscating assets obtained from the criminal proceeds of illegal gambling and betting, he said.

“There is a significant amount of serious crime associated with illegal gambling in the Cayman Islands including assaults, robberies, intimidation, and more recently there has been a related murder.

“Illegal gambling in all of its forms has a very unwelcome and pervasive influence on the most vulnerable in our communities, and this Bill sends a very strong message to all those engaged in this criminal activity,” Byrne added.

The government previously drafted the Gambling (Amendment) Bill, 2018, which set out to improve and strengthen the legislation, specifically in the area of increasing penalties for illegal gambling.

While the Gambling (Amendment) Bill, 2018 was published, the bill was never placed on the Order Paper to be debated in Parliament, and therefore provisions in the current legislation remain in effect.