A prospective casino operator is said to be ready to walk away from developing in Bermuda over the island’s high gaming fees, according to Progressive Labour Party MP Zane Desilva.

And Shawn Crockwell, the Independent MP who also opposed the regulations in Parliament, said the high cost of business had proven unpopular with a number of stakeholders in the aftermath of its debate in Parliament, when the regulations were narrowly passed.

“Major players” with designated sites for casino gaming “were not consulted” on the regulations, according to Mr Crockwell, who as former tourism minister kept in regular touch with stakeholders in the nascent industry.

“I was contacted by numerous individuals who did not know of the fees until they read about it in The Royal Gazette,” Mr Crockwell said of the Casino Gaming (General Reserve and Casino Taxes) Regulations 2016, and the Casino Gaming (Casino Fees) Regulations 2016.

The regulations narrowly passed in the House of Assembly on February 3, and are headed today for the Senate’s consideration.

Mr Crockwell said that when it came to charges for casino operators to set up shop, “I was told consistently that we were looking at nothing more than $1 million — that would be the highest”.

“I was quite surprised to see the fee set at around $3 million,” Mr Crockwell added. “I spoke to about three very prominent individuals who were surprised, astounded, at the high levels.”

Grant Gibbons, the Minister for Economic Development, brought the regulations to Parliament, and Mr Crockwell said he had questioned the minister as to whether would-be gaming developers had been consulted.

The House had heard from Dr Gibbons during the debate that the Gaming Commission has been conversing with between 12 and 15 gaming operators and had not heard “pushback” about the fee structure.

“He never answered that question,” Mr Crockwell said. “I suspect that the fees came directly from [Gaming Commission CEO] Richard Scheutz, and no one else.”

Dr Gibbons was unavailable for clarification as his portfolio does not cover tourism — but Senator Michael Fahy, the Minister of Tourism, Transport and Municipalities is expected to address concerns today in the Upper House.

Mr Crockwell said he believed the fees were an indicator that the island’s “approach has changed” on gaming.

“We wanted to have amenity casinos to support hotels by providing entertainment for guests and to create a certain revenue stream, but it was not supposed to be for the Government’s moneymaking, The initial approach was that we wanted to help hotels, particularly new developments. Now we are going down a road of seeing Bermuda as a gaming jurisdiction, and that’s never going to happen.”

Mr DeSilva said he felt Dr Gibbons had been “economical with the truth” in telling MPs that there had been no pushback over the regulations.

“One particular developer has said they are upset at this legislation, and they will not be moving forward with their development unless things change — which is very disturbing,” Mr DeSilva said, calling the fees “way over the top”.

“I especially think so when you’re talking not one iconic casino but at least four sites, which I am in total agreement with — when we were debating the Gaming Act I was totally against issuing only three licences. I am on the record as saying that we could have ten if we wanted to, and leave it to the market forces.”