A local company has been set up to run a casino ship off Bermuda this summer, lawyer Llewellyn Peniston confirmed yesterday.

He said the company had entered an agreement with an overseas charter company to bring in a luxury boat and hoped to begin operations by June at the latest.

Gamblers will be able to use the casino once the 196-foot sails off Bermuda.

Mr. Peniston said the ship will operate in the same way as cruise ships, which must close down their casinos when they approach Bermuda.

He would not say how far out the ship would need to go before it could operate the casino, but said gamblers would not need to take overnight cruises before playing.

Cruise ships are not allowed to operate casinos in port as a condition of their permit, but it is understood there is no specified distance they must travel before they can allow gambling.

It is understood there is no legislation governing the issue but it has been a policy of successive governments not to allow ships to operate their casinos while in port.

Mr. Peniston said he believes it will provide a boon for tourists and residents, with companies possibly hiring the ship for corporate entertainment.

He told he could not reveal the names of the local businessmen involved in the venture, but said the shares in the local liability company will be held by two trusts.

?A local limited liability company has entered a charter party agreement with overseas principals who own a very large vessel which is a floating casino,? Mr. Peniston said yesterday.

?It is intended that this vessel will offer a number of multi-purpose cruises offshore in this jurisdiction and elsewhere for limited parts of the year.

?My clients contend it will be no different in terms of operating their machines than that of any other cruise line that operates in Bermuda.

?At certain points in their approach and departure to Bermuda these machines are turned off then switched back on.

?I do not anticipate any legal problems because the ship will operate no differently from these cruise lines.

?There is reasonable demand for vessels that offer luxury and party cruises, and there may be opportunities for (more) corporate charters than are currently in place.?

Mr. Peniston said was built for the Shell Oil Company and is currently in Alabama being decorated.

Salvation Army Major Lindsay Rowe has argued against gambling and the prospect of a casino ship.

Mr. Peniston countered: ?Any church or institution has a right to object on valid grounds, but the history of some of these objectors has not gone without some gambling as well.

?They have had no hesitation to raise money by way of Bingo, which is a game of chance, or a raffle opportunity and they have made distinction between the history of the money they have raised.?

Neil Inchcup, Sr., who owns the Seamont Exclusive gambling club on Collector?s Hill, Smith?s, said yesterday he was not involved in the casino ship.