Criminal Investigations Department (CID) ranks who carried out the operation, also arrested three persons found in the section, including the father of prison escapee Dale Moore, officials said.

Moore was one of the five dangerous prisoners who fled the Georgetown Prison on February 23 last and he and three others are still at large.

Police had arrested his father earlier on suspicion of providing medical support to the escapees, including his son. While in custody, his cell phone rang and Police traced the call to a Police rank who was later disciplined, officials said.

Government officials maintain Palm Court has been operating an illegal casino.

But Managing Director, Mr. Jad Rahaman claimed he was operating an entertainment arcade, adding that as far as his lawyers are aware, he has a legal right to operate the machines.

He charged that the move, initiated by Ministry of Finance officials, was grossly unfair.

The raid yesterday prompted Rahaman, who said his business has been taking a battering since the slowdown of the economy, to immediately shut down his Palm Court operations indefinitely.

Some 85 employees are affected.

Palm Court Managing Director, Mr. Jad Rahaman.
Minister of Tourism, Industry and Commerce, Mr. Manzoor Nadir last night maintained his position that Rahaman knew that his Golden Palm Inc. operations were against the law.

Pointing to Chapter 9:02 of the Gambling Prevention Act, he said the slot machine, known as the `one armed bandit', is a "machine of chance" and the place a common gaming house considered a public nuisance, and is prohibited by the Laws of Guyana.

Responding to the businessman's argument that the machines were passed through Customs and tariffs paid, the minister said that still does not give him the right to operate the machines.

In relation to the claims of losses suffered by the restaurant and bar, to the extent that it would not be able to stand on its own without the gaming business, Nadir said he is not aware that anyone runs a restaurant to lose.

He reiterated that in terms of arrivals in the tourism sector, Guyana at the present period has recorded an 18 per cent increase in arrivals over the corresponding period last year.

"What I'd say Mr. Rahaman has to do is clean up his management practices," Nadir submitted.

The minister said the Government has not revisited the law, nor made any policy decision with respect to operating a gaming machine or casino.

The Ministry of Finance has said that it had not authorised any such activity at Palm Court, "hence any operations of this nature will be deemed illegal."

Nadir insisted that "the machines should not have been in the country because the Laws of Guyana do not allow for that kind of gaming and gambling."

Palm Court employees immediately mounted a picketing exercise protesting the move as the Police loaded the 22 machines on to a vehicle outside the business place.

Rahaman said business has been "so bad" recently, that he was forced to take the decision to close the 'White Water Resort' on Baganara Island in the Essequibo.

He said that for the last year-and-a-half or so, business generally, in the industry has been on a rapid decline.

"We're down like about 35 to 40 per cent of our gross that we did like two, three years ago...Without an entity like this to support us, and keep our staff going we would be in trouble", he argued.

He said that despite troubled times he had never once considered even retrenching any of his employees.

He explained that he has had to close the White Water Resort because of "lack of visitor arrivals".

He was adamant that statements are being made stating that there is an increase in visitor arrivals, adding: "Well show me them."

Rahaman said he had only recently invested some $15M to bring in the slot machines seized yesterday.

He said he had taken a loan for that investment and is heavily committed to the bank.

"This kind of pressure only puts businessmen like me under more pressure," he said.

He argued that his `entertainment arcade' "is no different to the Lotto (lottery), it is no different to the betting shops; the horse racing..."

He said that persons would play the game whenever they turn up at Palm Court to buy food and beverages.

He said he had applied to the Ministry of Finance for permission to operate the slot machines more than a year ago and did not get a response.

He said that after hearing through the grapevine that action was being planned to shut him down, he moved to the courts, filing legal action against the Director of Public Prosecutions, the Attorney General, among others.