Casino politics: Goa hedges bets

Casinos contribution to the exchequer and livelihood generation can hardly be ignored

Every night after 8, it’s difficult to find a parking spot along Dayanand Bandodkar Marg. Cars from not only all over Goa but also Maharashtra and Karnataka line-up, bringing gamblers to the offshore casinos floating on the Mandovi river. 

Goa has five offshore and around 10 onshore casinos, mainly operating out of five-star hotels. The first thing one sees upon exiting the tarmac at the domestic terminal of the airport is a full-sized advertisement of a local casino. And, every election in the state since the mid-2000s at least has seen the closure of casinos as a major poll plank. Primarily, the five casinos on the Mandovi have been a bone of contention. 

This year is no exception. The new Goa Suraksha Manch led by Rashtriya Swayamsevak Sangh (RSS)-rebel Subhash Velingkar and the Aam Aadmi Party (AAP) have spoken against casinos and made closure their election promise. The ruling Bharatiya Janata Party, which campaigned against casinos during the 2007 and 2012 elections, has changed its stand, saying these help the exchequer in terms of tax. 

Former state Chief Minister Manohar Parrikar, now the Union defence minister, stationed in Goa for the past few weeks, said: "We have decided not to give any new licences for casinos. As for the existing ones on the river, we have decided to move them elsewhere. We are searching for an alternative place. We want to shift from the Mandovi." 

This might look like an easy solution but seems impractical in the long run. "Wherever they are moved, locals and non-government organisations in its vicinity would protest," said a state official. 

Government sources say casinos account for the bulk of entertainment tax collection. "Around Rs 100-120 crore is collected as entertainment tax from casinos, the bulk (75 per cent) from offshore casinos. The total entertainment tax collected in Goa in FY16 was Rs 160 crore,” said Dipak Bandekar, commissioner of commercial taxes. 

An additional Rs 60-80 crore comes from annual licence renewal. Plus the demand for liquor and food these create and that provide livelihood to locals. Elvis Gomes, a former bureaucrat and the CM candidate projected by the AAP, is still vocal against casinos. "Even if it means a Rs 150 crore loss to the exchequer, we would ensure casinos are shut down. It is about the image of the state, which has changed drastically from a peaceful tourist destination to India’s gambling capital." He added many families in Goa are ruined thanks to the gambling addiction. 

At one point, the government had even thought of not allowing Goans to gamble in casinos, said an industry source in Panaji. Casino owners, who did not wish to be quoted on this sensitive issue, felt there was a need to have a regulatory body. "A lot of investment is at stake and when they say offshore casinos would be shifted further away, that means more investment on our part, as the current vessels might not be suitable for deeper waters and sea currents," said one. 

While casinos are a lion’s share of entertainment tax, this is not even one per cent of the total commercial tax collection. In 2015-16, the latter was Rs 2,800 crore. In the first 10 months of this financial year, it was Rs 2,535 crore, up from Rs 2,323 crore during the same period last year. One observer says entertainment tax collection grew in the past decade or so, thanks to casinos, from Rs 5.2 crore in 2005-06 to Rs 160 crore in 2015-16. The spike was first seen in 2009-10, when entertainment tax collection was Rs 33.6 crore and it has continued to grow steadily.  

What happens after the election would be interesting.