Hospitality associations in Trinidad and Tobago are mounting strong opposition against the government’s planned gaming amusement tax increase, warning of severe consequences for community bars and their employees.
The Trinidad and Tobago Coalition of Bars and Restaurants (TTCOBAR) alongside the Barkeepers Owners/Operators Association (BOATT) have issued forceful complaints regarding the proposed measure that would raise annual taxes per gambling machine from $6,000 to $25,000—an increase exceeding 400%. Industry representatives argue this dramatic hike would devastate hundreds of neighborhood bars that rely on machine revenues to maintain financial viability.
This perspective has gained support from the Trinidad and Tobago Coalition of Service Industries, which has called for collaborative dialogue before implementation. Currently, approximately 60% of the nation’s 2,500 bars operate known gambling devices, with many establishments risking substantial fines for undisclosed machines due to the lucrative returns.
The financial mechanics of these machines reveal why they’re so attractive to bar owners. After covering acquisition costs and annual taxes, the machines generate revenue without additional staffing requirements, sick leave, or drink-mixing services. They efficiently extract cash from patrons while creating no new employment opportunities.
Unlike social bar games like pool or darts that encourage customer interaction and extended stays, these electronic gambling devices promote solitary, focused use. Despite their colorful interfaces and the softened term “gaming,” they constitute sophisticated gambling technology with lower payout rates than those offered in private members’ clubs.
Bar owners already anticipate staff reductions to offset the new tax burden. There are also concerns that increased taxation might drive more operators to conceal their machines, potentially undermining tax collection efforts.
Globally, taxes on gambling devices typically fund specific programs, including rehabilitation services for compulsive gamblers. The current proposal appears to be part of broader government efforts to finance programs through taxes that target harmful behaviors, though stakeholders argue the approach requires more nuanced consideration than a blunt tax increase.