Online gambling operators in the Bahamas are slamming the government’s plans to boost their tax rate to as high as 50%.

Last week, the Free National Movement government of Harold Minnnis, who was elected Prime Minister last year, introduced its new 2018-19 budget plan, which includes dramatic hikes in the taxes paid by local ‘web shop’ operators, who offer online casino and lottery games from computer terminals in retail venues.

Web shops, which were authorized under the former Progressive Liberal Party (PLP) government in 2014, currently pay either 11% tax on their gaming revenue or 25% of earnings, whichever is greater, plus an additional 2% cut of revenue to help fund social causes.

The new budget calls for a variable tax rate, starting at 20% on revenue up to BSD20m (US$20m), rising to 25% on revenue up to $40m and incrementally thereafter, while any operator lucky enough to generate revenue over $100m will face a 50% tax rate.