WEEKLY FEATURE: Bermuda OKs Casinos

Bermuda’s House and Senate voted last week to allow three casinos with hotels on the island, the first time that gaming has been allowed on this territory of the United Kingdom. One company has already submitted a proposal for the former Club Med (l.), but the ground rules have not yet been set.

Last week the Bermuda House of Assembly passed a controversial measure to allow casino gaming on the island territory of the UK. The Senate followed the Assembly action a few days later. The law authorizes three casinos, all of them within hotels. Governor George Fergusson is expected to sign it.

The Assembly had previously passed the Cruise Ship (Casino) Act of 2013, which allowed casino ships berthed overnight at the island to leave their casinos open.

During the 10-hour debate on the measure Tourism Minister Shawn Crockwell told fellow legislators that most people in the territory support allowing casinos and said that the measure would be good for Bermuda.

The measure was passed partly to help boost tourism in the islands, which has declined in the last 30 years. “The bill we seek to pass represents a significant and critical adjustment to our tourism product and Bermuda as a destination,” said Crockwell. He predicted that it would create jobs and encourages investment in the island’s economy. The measure authorizes three casinos on sites that will be determined by the Casino Gaming Commission.

There is some talk that when details of the measure are released that only tourists staying at the casino hotel would be allowed to gamble. Crockwell said that the measure would be “substantially” augmented by regulations. The legislation does not appear to allow for stand-alone casinos.

Some members of the opposition party in the Assembly support the legislation, but argue that the people of Bermuda should be allowed to vote on it. During the 2012 election, the ruling party had promised to hold a referendum on the issue, but recently stated that the public was sufficiently involved in “extensive consultation,” with drafting the legislation and noted that $500,000 would be saved by not holding an election.

Shadow Tourism Minister Zane DeSilva declared, “Not only did they break their promise, but they also tried to mislead, and succeeded in misleading the people of Bermuda by stating that they cancelled the referendum because they heard that the PLP were going to undermine it.”

One opposition party member, Wayne Furbert, called the vote “the saddest days of my career in politics,” adding, “Why can’t we structure our island around something that is more wholesome?” He said he was concerned that casinos would encourage prostitution and “pole dancers.”

Opposition Leader Marc Bean, although supporting gaming on the island, said that the legislation has the potential for corruption.

Although no licenses have yet been issued, and the government insists that no guarantees have been issued, one MP pointed out that a previous lease to developer Carl Bazarian had included a provision that he would be able to operate a casino if they ever became legal.

One proposed $120 million development, a St. Regis resort slated for St. George, includes a casino. Other casino developers have shown an interest in Bermuda, hoping to build something to coincide with the America’s Cup, which will be held there in 2017.