The government of the Bahamas recently introduced comprehensive gambling legislation that would continue to ban Bahamians from gambling in hotel casinos and could lead the way to a national lottery. In January 2013 voters defeated a referendum asking if they supported establishing a national lottery and regulating and taxing online casinos.
Tourism Minister Obie Wilchcombe stated the legislation was introduced because Central Bank of the Bahamas had warned that unregulated online gambling could harm the financial services sector.
Wilchombe said he could be allowed to remove the ban on hotel-casino gambling by residents, subject to cabinet approval and the outcome of ongoing research. In its current state, the bill has been criticized by former Gaming Board Chairman Dr. Andre Rollins, among many others, who said expanding the gaming industry strictly for international players and online casino operators while barring Bahamians from playing in hotel casinos is discriminatory. “We had the attorney general travel around the world and talk to individuals to ensure that we were putting the legislation the way it needed to be done and it could stand up to scrutiny. We think we have done a good job,” Wilchombe said.
He added, “Further research and sustainability of the web shop business is needed. When we allowed for casino gambling, the thought was to allow for an amenity for tourists that allows the government to get the foreign direct capital from the tourist. The average Bahamian is only saving about $800 right now. We have got to think about what we are doing before we go there. Then the next thing you know we are in trouble. You’ll destroy your entire economy. So those who argue that we should do it now, well, they haven’t done the research. You have to move with information.”
The proposed regulations would allow casinos holding licenses on or before February 1, 2015, that are part of a resort hotel, to operate remote wagering and proxy wagering systems. Players also could place a bet without physically being on site, via proxy and technical aids, or they could wager online and via mobile gaming devices from anywhere on the property of a licensed casino facility. Casinos would also be able to accept wagers on a sports event after the game has started.
Additionally, the new law would introduce a streamlined process for enforcing all debts incurred by gaming activities at a licensed casino and expedite the process by which licensed operators can collect debts from patrons once they leave the jurisdiction.
Wilchombe added the legislation could allow a national lottery to be established before Bahamians are allowed to gamble in hotel casinos as a way to raise money for much-needed infrastructure improvements or other needs. “In Florida they use it for education. Well, we could perhaps introduce a lottery and use it for education, or use it for healthcare, or use it for sporting or use it for culture. The truth is we have many areas that require a tremendous amount of financial support,” he said.
Bahamas casino operators welcomed the proposed regulations, which, they said, would help expand the nation’s international tourism industry, which accounts for 55 percent of all Bahamian jobs and nearly half of the country’s gross domestic product. Sarkis Izmirlian, chairman and chief executive officer at the $3.5 billion gaming resort Baha Mar said, “These regulatory updates would provide the Bahamas and Baha Mar with a sustainable competitive advantage, which is vital for an economy driven by international tourism. The Bahamas has long been known as a stable gaming jurisdiction, and these new regulations would put us on a level playing field with the world’s most successful casino markets such as Las Vegas, Singapore and Macau. The regulations also would allow us to offer private VIP gaming salons, enhanced lines of credit, gaming junkets and other amenities vital to attracting affluent international casino customers.”
“The new regulations and laws would enhance Baha Mar’s ability to generate strong gaming revenues,” added Paul Pusateri, Baha Mar’s chief operating officer. “Technology-driven amenities such as internet gaming, mobile gaming and in-play sports betting will help differentiate the Bahamas in the highly competitive gaming sector. They definitely will help Baha Mar attract players from the Eastern United States, Latin America, Asia and other markets that will be important to our success.”
Wilchcombe said government officials may owe voters “an appreciative apology,” but added they had no choice but to act unilaterally, without public approval. “When the Central Bank raises a red flag and says a problem is developing we have to, because of our financial services sector being in jeopardy, make a decision. And the best decision was to regulate the sector. We think we have done a good job.”
The new regulations, if approved, would constitute the first major update in gaming law since Bahamian casinos were legalized in 1969, according to the Caribbean News.
Meanwhile, the subject of gaming for locals continues to stir debate. Web shop owner Sebas Bastian is calling for an end to discrimination that bars residents from playing in the nation’s casinos. Currently, locals are restricted to gambling in street corner web shops, though they may work in the big casinos. And visitors to the country may only legally gamble in the casino resorts.
“There are three components to discrimination and those are access, equality and ownership,” he told the Bahamas Journal. “So we can’t tackle one without tackling the rest. … You can’t allow access and leave the discrimination as it relates to equality and ownership as well so let’s just level the whole playing field and take the Bahamas to the next frontier as it relates to gaming.”
