Trinidad and Tobago Cracks Down on Black Market Sector

The government of Trinidad and Tobago is implementing stricter policies to more effectively regulate its gambling sector. This decision aligns with the island’s ongoing efforts to curb revenue losses and strengthen financial integrity. Finance minister Davendranath Tancoo announced sweeping legislative changes directly targeting the lucrative underground betting network that continues to undermine the state’s regulated gaming industry.

Underground Gambling Far Exceeds the Regulated Sector

During an October 13 budget presentation, Tancoo disclosed that while the National Lotteries Control Board (NLCB) generates close to TTD 3 billion ($442 million) annually, illegal operators continue to erode its profits. Authorities believe black market operations could be worth nearly TTD 9 billion ($1.33 billion). This illegal sector, primarily driven by long-standing “whe whe” games and unlicensed betting shops, remains a pressing issue.

Speaking for Trinidad and Tobago Newsday, Tancoo pointed out that black market operations siphon vital funds from Trinidad and Tobago’s economy. He further remarked that such illegal organizations are often linked to money laundering, black-market financing, and human trafficking, turning what may seem like small-scale street betting into a broader criminal enterprise.

These illicit activities also deprive the government of income tax, corporation tax, windfall tax, and direct revenues from NLCB’s services.

Davendranath Tancoo, Trinidad and Tobago finance minister

Trinidad and Tobago’s Gambling Control Commission (GCC), established in 2022, has played a crucial role in channeling consumers away from unlicensed entities and promoting the regulated sector. The new reforms should enable the GCC to more effectively supervise licensed operators, protect vulnerable players, and collaborate with law enforcement to tackle gambling-related crimes.

New Legislation Targets Several Common Offences

The government seeks to address rising regulatory challenges by revising the Gambling and Betting Act, tightening penalties, and updating the supervision of both physical and digital operations. The changes also close loopholes that illegal lotteries have been using to their advantage by taking the NLCB’s official draw results. Black market operators often issue counterfeit tickets that resemble grocery receipts, disguising bets as purchases of everyday items.

The new legislation targets this practice specifically, establishing it as a standalone offence under the National Lotteries Act. The new framework envisions a fine of TTD 3 million ($442,000) and a potential prison term of up to seven years. Enforcement will extend to all individuals and organizations that take bets or make payouts based on official lottery results.

While the NLCB will gain expanded enforcement powers, the regulator will be required to submit quarterly payments to a Consolidated Fund, tightening financial oversight. The government hopes the combination of harsher penalties, stronger oversight, and modernized regulations will significantly reduce leakages and restore confidence in the legal gaming sector.