Bermuda’s House of Assembly recently passed the Casino Gaming Amendment Act of 2016, which will allow casinos to open on the island, following four hours of intense debate. The act, which was offered as a “streamlined” version of the 2014 gaming act, had been strongly opposed in Parliament by the One Bermuda Alliance and opposition MPs. However, opposition Deputy Leader Walter Roban, in opening the Progressive Labour Party’s response, called it “a cleanup bill for the first bill” and criticized the government for the “ministerial misadventure” in Singapore that created the 2014 Act.
Casino Gaming Designation Site Orders for the St. Regis Hotel in St. George’s and the Hamilton Princess & Beach Club on Hamilton Harbour also were passed, as well as provisions allowing iGaming via mobile phones, sports betting and permitting local residents to gamble in the new casinos.
The gaming amendment is the result of several legislative actions that took place in December 2015, including site selection criteria. Among its provisions is Clause 187, which bans any public officer from becoming involved in the gaming business for two years. Several MPs called this a “superfluous restraint of trade,” given the existing anti-bribery laws. Mark Pettingill of the One Bermuda Alliance called the restriction “jaw-dropping.” He said, “Former Tourism Minister Sean Crockwell has to call our clients and say, ‘We can’t work for you anymore.’”
MPs also questioned a clause granting a provisional casino license to Desarrollos Group, developers of the new St. Regis Hotel for St. George’s. The license does not allow the Desarrollos Group to operate gaming, but it makes them eligible to begin construction.
Opposition leader David Burt said Desarrollos had been given special treatment simply to keep the St. George’s resort deal alive. He asked, “What research has government done to make sure this person is fit to get a gaming license? We have to think very, very carefully about what granting a provisional license to Desarrollos means. This is about keeping Desarrollos at the table.”
He added, “This bill is certainly needed and we want the gaming industry to get off the ground, but it is certainly clear this is a troubling development and it should concern all parties. If we set this precedent today, every developer is going to ask for the same thing, and they would be well within their rights to demand it.”
PLP MP Wayne Furbert asked why another developer, who planned a casino at Morgan’s Point, was not included in the bill.
Cockrell, now an independent MP, criticized the delay in passing the act, blaming a lack of “real leadership.” He and other pro-casino ministers had expected all legislation to be finalized so casinos could be operating before the start of the 35th America’s Cup in May 2017. That goal no longer seemed possible, he said.
In other troubling news, Bermuda Casino Gaming Commission Chairman Alan Dunch recently said none of the country’s three banks is willing to finance casinos. “Nobody told me when I took this job on that the three banks in this country had told the government they won’t bank casinos.” He said international companies would probably apply, but added that if they can’t get the banks involved there would be no casinos coming to Bermuda.
Tourism Minister Senator Michael Fahy added, “The Bermuda government is well aware of the issues that surround banking the proceeds from gaming. It is important that we have a robust regulatory regime to demonstrate to both local banks and their overseas correspondent banks that adequate know-your-client and anti-money laundering provisions are in place. As we move ever closer to having gaming in Bermuda through the allocation of casino gaming licenses via the Casino Gaming Commission we will ensure that such robust provisions are in place to give comfort to our partners that our regime is of a first-class standard.”
