Madam Speaker, a betting tax and a levy are imposed on betting activities in respect of horseracing and foreign football matches. Currently, a 14 per cent betting tax on gross stakes, that is, a total amount played net of refunds and cancelled bets is paid by a punter. Furthermore, a 2.5 per cent levy on gross gambling yield, that is, a total amount played net of betting tax and winnings is paid by a bookmaker. I am informed, Madam Speaker, by the Ministry of Finance that proposals were made at the level of the Gambling Regulatory Authority from operators and trainers for the removal of tax on punters and for the imposition of a higher tax rate on the net yield of bookmakers. The operators believe that the high rate of betting tax on punters may be the root cause for high-level illegal betting in Mauritius. Madam Speaker, may I remind the House that in September 2014, I had set up a full- fledged Commission of Inquiry on Horse Racing in Mauritius to look into all aspects of horse racing, including any financial malpractices, impropriety, illegal betting, illicit flow of funds, in the organisation of betting and ill-gotten gains from fraud in relation to horse racing. These are often interconnected, and the presence of a large illegal market reduces revenue for licensed bookmakers and stakeholders, creating a cycle that undermines the integrity of the whole industry. The Report of the Commission of Inquiry – I am talking about the Parry Report – highlighted that, and I quote – “Much evidence was presented about the possible size of the “illegal market” being at least as large, if not larger, than the legal market – the truth is no-one knows. However, the Commission considers the lack of official will and effort to combat the illegal market and the huge loss of revenue to the Exchequer from the loss of taxation (estimated up to MUR 800 million in 2015 at the time the report was drafted) to be alarming and totally unacceptable”. Madam Speaker, as soon as we took office in November 2024, this Government set up a High-level Committee under the chairmanship of the Secretary to Cabinet and Head of the Civil Service to conduct a regulatory review of the legal framework governing horse racing, including the Gambling Regulatory Authority Act. Subsequently, in June 2025, the Gambling Regulatory Authority Act was amended to ensure that the Authority performs as a credible regulator of the gaming and betting industry and operates in a fair, transparent and accountable manner. The amendment also strengthened the provisions regarding illegal betting, money laundering and tax evasion. To combat illegal betting – • A Horse Racing Integrity Division was set up; • Specialists staff were recruited; • A new cell of Police des Jeux is now attached to the Authority; • The capacity of the GRA staff has been strengthened on enforcement and field inspection; • An Inter-Agency Coordination Committee was set up to enhance effectiveness in detection of illegal activities and enforcement of the provisions of the law, and • A bookmakers’ licence for those operating outside the racecourse was re- introduced. Madam Speaker, the Ministry of Finance and the GRA are contemplating the enlistment of a consultant to undertake a study and advise on the holistic approach for the framework of addressing illegal betting. The matter relates to taxation, and therefore, any change will be dealt with in the forthcoming budget.

Yes, Jhummun? Okay, next question! Hon. Second Member for Rodrigues! RODRIGUES – MONEY LAUNDERING & ILLICIT FINANCIAL FLOWS – TRACKING & COMBATING MEASURES