Income from licences and taxes - Saint Vincent and the Grenadines

Income from licences and taxes (Saint Vincent and the Grenadines)

Introduction: how to monetize the "chamber" market

The gambling ecosystem of Saint Vincent and the Grenadines (SVG) is small and consists mainly of slot-lounges at hotels/marinas and individual urban venues with electronic tables. There are no mass resort casinos, and part of the demand goes to the online "gray" segment. Therefore, the fiscal strategy must be accurate and careful: collect income without squeezing business into the shadows and without breaking boutique tourism.

Map of possible sources of state income

1. Royalties

One-off fee for site/product licensing.

Annual renewal fee (may be staggered in hall size/fleet).

B2B licenses (platforms, game providers/e-tables, payment services, auditors) - low tariffs, but a wide base.

2. Gross Gaming Revenue (GGR) Charge/Tax

Percentage with GGR = Bet - Win. This is the main "current" in a working market.

Maybe with a "corridor" of rates (lower rate at low GGR, higher - for large halls).

3. Corporate taxes

Income tax (including expenses). For small longs - a moderate contribution, but stable.

4. Indirect taxes

VAT/GST on F&B and related sales (if applicable to the business structure).

Import duties/VAT on equipment (slots, e-tables, CCTV).

Alcohol/night trading licenses/fees (outside Gaming).

5. Earmarks (funds)

0.5-1.0% of GGR on Responsible Gambling (RG), youth/cultural programs, sports.

💡 Principle: low thresholds + digital control. A broad base on moderate rates is better than high rates on a narrow base.

Betting model: how to "customize" tariffs for a small format

A. Licenses (example architecture)

Venue-license:

Opening fee: moderate one-off.
Annual fee: base × meter factor/number of slots.
B2B providers (content/equipment/payments/audit): low fixed payments to localize service offices.
Short-term pop-up/seasonal: preferential fix for the period with extended reporting.

B. Collection with GGR

Low-medium range: so as not to be taken to the "gray" online.

Sliding scale: e.g. 8-12% with GGR thresholds (illustration below).

CAPEX credit: temporary rate reduction for new halls (first year) when performing RG/AML KPIs.

C. Indirect elements

Imported equipment: partial refund/credit duty with proven local service/personnel training.

RG fund: small, but public - with reporting on expenses.

SupTech and data collection: "see" the market in real time

Daily API uploads: bets, wins, GGR, checkout, AML/RG incidents.

Anomaly alerts: jackpot jumps, non-standard TITO patterns, IP "jumps" for e-tables, frequent cancellations.

Regulator dashboards: GGR by location, average withdrawal/payment amount, time for resolving complaints.

Unified register of licenses and "black list" of unscrupulous suppliers.

Illustrative economy of a small hall (example-calculation)

💡 This is an example that does not reflect actual SVG data. The goal is to show sensitivity to rates.

Platform: 30 slots + 1 e-roulette, meter ~ 90 m ².

Load: average, 330 days/year.

Average gross revenue (handle - payouts = GGR):

Slots: notionally 900 XCD/day GGR → ~ 297,000 XCD/year.
E-roulette: 220 XCD/day GGR → ~ 72,600 XCD/year.
Total GGR: ~ 369,600 XCD/year.

Rates (conditional):

GGR 10% charge → ~ 36,960 XCD.
Annual venue license fee: 15,000 XCD allowed.
B2B backgrounds/RG 0.5% GGR: ~ 1,848 XCD.
Corporate income tax: depends on margin after OPEX (energy, personnel, depreciation, rent). At an operating margin of 12%, → profit ~ 44,352 XCD; tax, say 30% → ~ 13,306 XCD.

Total for budget (illustration):

GGR fee: 36,960
Venue licence: 15,000
RG Fund: 1,848
Corporation tax: 13,306
Amount: ~ 67,114 XCD/year from one small hall + indirect: VAT/F & B, duties, employment.

💡 Sensitivity: an increase in the GGR fee by 2 percentage points (+ ~ 7 392 XCD) with the same margin can "eat" 17% of the operator's profit and reduce the incentive to upgrade the fleet/service. For a small market, it is better not to "tug the rope."

How not to "burn" the market with bets

Elasticity rule: the growth of the fiscal rate> 1-2 percentage points. on a small base is able to transfer part of the demand to the online/gray zone.

Compliance benefits: reduced GGR rate for halls with confirmed RG-adoption (high share of players with limits, zero delay in complaints).

Pilot periods: The new rate is introduced with a "review after 12 months."

Seasonal pop-ups: preferential fees, but increased reporting and restriction on hours/marketing.

The role of business: how to increase the "pie" and not argue about rates

Shift in F&B and events: more joint programs with hotels/marinas → indirect taxes and guest loyalty are growing.

Local purchase of services: cleaning, decor, music - the multiplier remains in the country.

Quality of reporting: clean logs = less disputes with the regulator and a stable tax regime.

Responsible game: noticeable limits/self-exclusion/timers → less social. risks and political pressure on bets.

Recommendations to the state

1. Betting on a "broad base"

Moderate GGR fee (low-medium range), adequate annual fees, cheap B2B licenses.

2. Transparency and predictability

Calendar of revision of rates (every 2 years), public reports RG/ADR, understandable manuals for accounting GGR.

3. SupTech panel and ADR

Online acceptance of reports, Dispute Ombudsman, KPI on payment terms/complaints.

4. Link with tourism

Joint promos (without aggression), "quiet" aesthetics of the halls, support for event pop-ups.

5. Online context

If the country goes to "soft harmonization" online: minimum standards for advertising, RG and arbitration → part of the proceeds and offices will return to SVG.

Monitoring KPIs (quarterly)

Fiscal: revenues from GGR collection, licenses, corporate tax; share of indirect taxes (F&B, imports).

Operating: withdrawal time (P95), share of complaints, time of ADR solutions.

RG:% of players with limits, number of self-exclusions, incidents.

Industrial: loading halls (seat-time), updating the fleet of equipment, the share of local contracts.

Risks: API anomalies (anti-fraud), undeclared pop-ups, reporting delays.

Scenarios to 2030

1. Basic - "Niche Growth"

Small network of chamber longes, stable GGR, moderate receipts; SupTech closes accounting holes.

2. Premiumization

Slightly higher average check due to private rooms/events, more F&B → an increase in indirect taxes at the same GGR rates.

3. Online harmonization

Minimum rules for operators working with the SVG audience (advertising, RG, ADR) → a new revenue base from B2B/offices and parts of GGR.

4. Status quo

Without reforms - receipts depend on the season; the key task is to keep rates low and reporting clean.

FAQ (short)

What brings more - a license or a GGR fee?

In a stable market - GGR collection. Licenses give a predictable "fleet," but the bulk is in circulation.

Why not raise the stakes higher?

Small market + online alternative → the risk of fading into the shadows and falling total revenues.

Do I need to differentiate fees by the size of the hall?

Yes: small - below the fix; large - alignment through the GGR scale and a higher annual fee.

How do you make sure RG fund money doesn't "dissolve"?

Public reports, independent foundation council, KPI: training coverage, number of consultations, self-exclusion metrics.

For SVG, sustainable income from the gambling industry is not born from "high rates," but from a wide base of moderate tariffs, digital reporting and respect for the boutique tourism format. Optimal configuration: low-cost licenses (including B2B), low-average GGR fee, small RG deduction fund, SupTech control and predictable rule revision calendar. In such a framework, the state receives stable receipts, business - incentives to invest, and guests - safe and calm evening leisure.