Supreme Ventures to take over CTL in January
The Government has announced that Supreme Ventures Limited should formally take over Caymanas Track Limited (CTL) on January 5, 2017.
The announcement was made by finance minister, Audley Shaw, in the House of Representatives, yesterday.
Shaw said the Government intends to sign the contract for the takeover by December 23.
Explaining the terms of the contract, Shaw said Supreme Ventures would pay a US$305,000 annual lease and handover 1.875 per cent of pre-tax profits from the operation of CTL to the Government.
In addition, the Government will be entitled to 3.75 per cent of the pre-tax earnings from associated non-regulated businesses after the fifth anniversary of operation.
Shaw said the initial investment by Supreme Ventures could reach as high as $1 billion as the company will have to correct a number of breaches by CTL ranging from regulatory to environmental.
In the meantime, Supreme Ventures had requested 30 years of exclusivity in the market, but the Government has only approved 15 years, with an assessment to be carried out after that period.
The details of the deal were outlined by Mr. Shaw as he sought approval for two Bills.
The Jamaica Racing Commission (Amendment) Act, 2016 and the Betting, Gaming and Lotteries (Amendment) Act, 2016 were both passed by government MPs as those on the opposition benches had staged a walk out earlier.