Sant calls on the government to come clean on online gambling

Labour MP Alfred Sant yesterday called on the government to come clean on the online gambling and remote gaming sectors and provide Parliament with all statistics showing the sector's contribution to the economy.

Speaking on the adjournment, Dr Sant warned that Malta would soon have to make difficult economic choices in the framework of its eurozone membership. Strict financial discipline would be imposed on EU member states and one had to know to what extent these steps would impinge on the people. This would remain an unknown factor if the government continued to hide what was happening in important sectors of the economy on the pretext of confidentiality.

What were the government and the Finance Minister Tonio Fenech gaining by hiding such statistical information? Were they afraid that the strength of this sector would show how illusionary were their statements that it was through their leadership that the Maltese economy had kept its chin above water?

Dr Sant said the government was not realising that when it hid statistical information, it was giving space for future - if not present - suspicions that the truth was being withheld. Was it possible that the government had not learnt lessons from what had happened in Greece and other eurozone countries?

The government was happy to give reams of analytical information in The Economic Survey on sectors that employed a few workers, and then it refrained from analysing the gaming sector which employed 5,200 people.

Dr Sant said that the minister had denied him information, which he had asked for through a parliamentary question, showing the gaming sector's contribution to the economy on the pretext of confidentiality.

He said a glimpse at published information would clearly show the importance the sector was assuming.

In 2007 the government revenue from gaming had amounted to €32.5 million and in 2008, this had increased to €37.2 million. There were estimates of £43.4 million for 2009 and €46 million for 2010. However, this data did not differentiate between taxes from local gambling and revenue from online or remote gaming - a sector which should not offer its services to Maltese citizens resident in Malta.

Where did confidentiality arise? asked Dr Sant.

The minister himself had broken this "confidentiality" last March when he had addressed the World Gambling Briefing 2010, held in Malta. After telling delegates how favourable Malta was to remote gaming operations, Mr Fenech had informed them that 350 licences for online gaming had been issued; some 600 applications had been received; Malta had 250 internet gaming operators and the gaming industry employed 5,200, of whom 3,400 were employed directly by the remote gaming sector.

Dr Sant said these figures again confirmed the sector's strength in the Maltese economy.

Furthermore, The Economic Survey had divulged that the category of other community, social and personal services (which included remote gaming activities) had been on a steep upward trend in recent years. During the nine-month period between January and September 2009 it had increased by €23.6 million to €357.3 million.

It was also said that this category had been increasing its share in the total market services employment, recording an increase of 1,438 or 23.1 per cent to 7,650. But the information in the publication did not separate figures, and those pertaining to gambling were grouped with other sectors. Dr Sant also referred to the 2009 IMF reports on Malta which produced a graph showing that between 2006 and 2008, the sector had contributed between 50 and 60 per cent to the Gross Domestic Product. During 2008 the sector had contributed 10 per cent to the GDP in export services - more than double that of the financial services.