Independent MP Shawn Crockwell and OBA backbencher Mark Pettingill launched a scathing attack on new regulations tabled by Government last night designed to set taxes and fees for casino gaming in Bermuda.

However, The Casino Gaming (General Reserve and Casino Taxes) Regulations 2017 and Casino Gaming (Casino Fees) Regulations 2017 were passed, with Speaker of the House Randy Horton casting the deciding vote on the second set of rules relating to fees.

Mr Crockwell condemned the “sluggish” progress that had been made establishing the island’s first casino and told the House of Assembly the fee structure would deter operators coming to Bermuda.

Taking particular exception to the fee structure proposed by Government, Mr Crockwell said: “The advice I received was $1 million should be the highest we charge for a casino licence.

“Parties have told me that our fees are too high and prohibitive and it would deter operators. They will go somewhere else.”

Mr Crockwell went to on claim that the original vision to bring amenity casinos to Bermuda had been “hijacked” by the Gaming Commission.

“That is wrong,” he said. “We went from amenity casinos we can regulate and control without any problem to what appears to be some grand casino jurisdiction.

“That is not how we started out and that is not what we can achieve. We are going down the wrong path and we are going to be here next year having the same debate, which would be a disservice to this community. We are mucking about with this issue.”

Grant Gibbons, the Minister for Economic Development, brought the new regulations before the House. He said that the fee structure and 10 per cent tax rate established in the regulations were “clearly in accord with the stated policy goals of the 2014 Casino Gaming Act”. The fee schedule sets the casino licence application fee at $600,000 and the provisional licence issue fee at $1.4 million. Under the regulations a casino licence issue is set at $1 million, while an annual casino licence fee is $1 million, “less any applicable discount”.

The regulations state: “The schedule sets out the fees payable which are in addition to any requirement to reimburse the Commission for the costs of any investigation pursuant to the Act of any regulations”.

Mr Pettingill also took aim at the fee regulations, saying that the costs were far too high for Bermuda, noting that he as a lawyer has clients in the gaming industry. “My clients have passed on Bermuda because it doesn’t have the traffic,” he said.

He further accused the Gaming Commission of acting outside its remit by meeting with casino operators and attacking the body for its slow movement on bringing gaming to the island.

“We needed to get it up and running,” he said. “We spent significant time and energy in getting the initial legislation together and it was entirely workable.

“The public campaigning by the commission and the lack of progress do not sit well with me.”

Progressive Labour Party MPs echoed Mr Crockwell’s and Mr Pettingill’s concerns. Zane DeSilva said: “These fees are not only way too high, but it’s going to scare people away. We are making the cost of doing business way too high.”

He urged the Government to withdraw the regulations, axe the Gaming Commission and listen to Mr Pettingill, while Kim Wilson questioned if the fees would price Bermuda out of the industry, leaving the island without a casino.

And while Michael Dunkley agreed that the delay in progress was unfortunate, he said gaming is an issue the island must get right, adding that he had not heard of any pushback from those involved in the industry.

“Until there is pushback, we don’t want to sell ourselves short, and I haven’t heard of any,” the Premier said. “If there’s pushback, we can drop it, but its hard to go to someone you have given a licence and ask for more money.”

Opposition leader David Burt agreed it was important to get gaming right, saying the Minister should take the regulations off the table until they can be supported by the House.

But Dr Gibbons said the Gaming Commission has been conversing with between 12 and 15 gaming operators and has not heard pushback about the fee structure.

“I’m not disputing what the other members are saying, but our sense is that it’s not unreasonable,” he said. “We are probably on the lower side in terms of sustainability.”

When the second set of regulations relating to casino fees came to a vote, MPs voted along party lines with the PLP going against the regulations and the OBA — with the exception of Mr Pettingill, who abstained — voting in favour.

Mr Crockwell voted against the motion and, while Dr Gibbons suggested that the independent MP had a conflict of interest, Mr Horton ruled that his vote should count, leaving the vote at 17 to 17.

Casting the deciding vote in favour of the regulations, Mr Horton said: “In coming to make a decision, we have to weigh the information that seems to have been brought forward by those that are experts in the industry.”