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Politicians, business people weigh in on gambling debate

AP Photo/Kin Cheung

Gambling is a frequent topic of conversation in Bermuda. Should it be allowed? What form should it take? Who should be able to participate?

The answers to such questions may be a bit clearer today. Premier Ewart Brown presented the Green Paper on 'Gaming For Bermuda' in the House of Assembly on Friday. The report is the result of a $300,000 study by New Orleans-based consultants The Innovation Group. Additional recommendations came from the Task Force on Gaming, a group whose members included Wendell Hollis, Edward Trippe, Norman Mastalir, Deena Harvey and Marc Daniels.

Premier Brown said he hoped the study would kick-start public debate. "I look forward to hearing the views of the Bermudian people on this Green Paper and the specific questions that emerge from this comprehensive research."

The report recommends forming a private casino in Hamilton with no restriction on Bermudian participation. It suggests opening hours should mirror existing nightclub and bar liquor licensing laws and a ten percent revenue tax be levied.

"Even if the appropriate initiatives are implemented, there are likely to be some additional social and related costs to Bermuda if gaming were enacted," the report states. "However, based upon our analysis and examination of the issues, The Innovation Group concludes that the additional identified social costs both in terms of services [law enforcement, fire protection and health/social costs] are more than mitigated by the tax revenues, job creation and capital investment that is likely to occur with the advent of casino gaming."

The potential negative impact on the community is sufficient reason not to introduce gaming, former Premier and PLP MP Alex Scott feels.

"The Cabinet 'Green Paper On Gaming For Bermuda' discussion paper calls for gaming to be 'privately owned and operated'," he said. "I deem it timely to be considering the introduction of anti-corruption legislation; because, if gaming entrepreneurs are to be invited into our community to set up their tables, then a lot of money is going to be looking for a home which has the potential for an undesired impact on both the private and public sectors."

Mr. Scott added: "It indicates there are people who will need, and this is my term, social rehabilitation because of gaming in Bermuda. It budgets for the Police and the Police Service.

"They accept there is a need to police the whole industry. And really we will be bringing in the staffing that the whole industry needs and bringing in the problems of an industry where it's necessary to have somewhere else but I don't think we want that in Bermuda."

The Innovation Group estimated that opening one casino in Hamilton would generate $83 million in Government revenue a year.

It said that if casinos were allowed into hotels with 100 or more rooms as well, Government could be looking at reaping $130 million in revenue annually.

If the number of casinos was expanded to St. George's and Dockyard, Government could earn $145 million in revenue.

Chamber of Commerce president Stephen Todd said his organisation hadn't yet seen the Green Paper however members were concerned about Government involvement.

"We had polled our members and their opinions on gaming," he said. ""We had supporters and those that did not support. We spelt out a number of recommendations, such as no Government ownership and careful control so that gaming is a high standard."

Lawyer Llewellyn Peniston, who has long supported gambling in Bermuda, said: "My concern is I have always been open about gambling in Bermuda. I see the Bermuda community as a broad church, under which there are multitudes of insights.

"Some people are in support of gambling. Some people are not. I am sure there is nowhere in the [Green Paper] an expression of intended benefit to this community as a whole over the proceeds which are expected to arise from this casino. The people of Bermuda have to be particularly aggressive in demanding transparency over who the beneficiaries of a casino will be."

Phil Barnett, president of the Island Restaurant Group said he supported the idea. "I have not had a chance to review the Green Paper, however I am broadly in support of gaming legislation that has the potential to improve our tourism offering in Bermuda. It would however need to be done in such a way that augments our existing hospitality offerings. I look forward to examining the Green Paper, and digesting its contents before I comment further."

PLP MP Dale Butler said: "I thought that our Government had abandoned any interest in casinos under former Premier Alex Scott.

"I have been contacting my constituents and so far 90 percent who have responded don't want them here. While this is a discussion paper it will be interesting to see if a Bill will follow which seems unlikely given the shortness of this session and the next. Now that we have the report I encourage all Bermudians to read it and contact their MPs who represent them. At the end of the day I think it should go to a referendum."

Bermuda Democratic Alliance MP Mark Pettingill said: "I think that a Green Paper on this is certainly a fair way to go because the one thing it says at the end of this is that public submissions are invited by April 30. That gives the public a couple of months to read and digest it.

"Do we not need to look outside the box and find other solutions? If it's something that's going to contribute to us as a Country in the long run, then we need to be serious about it. We need to not be hypocritical.

"Let's be realistic here and not stick our heads in the sand like the famous Bermuda ostrich. These are the types of things we need to consider."

PLP backbencher Wayne Perinchief said: "I am generally in favour of gambling as a tool to enhance Bermuda's tourism product. I believe that it could generate revenue for the Island. Unlike some people I believe that Bermudians are responsible enough to participate."

UBP MP Charlie Swan said he wasn't so sure.

"It is obvious that Bermuda needs to come up with new ways to enhance our tourism product but as far as I am concerned gambling is not the only way.

"After hearing the reports I don't know if it great for Bermuda at this time. Although it is a pet project of the current Tourism Minister, it is up to the people of Bermuda to come to grips with the idea."

Managing director of Fairmont Hotels Bermuda Norman Mastalir said: "From Fairmont's perspective, gaming is a great addition to the tourism product, and we hope that gaming could be located at the Fairmont Southampton should it become legal on the Island. I believe gaming is positive for Bermuda and am grateful for the Government's support in exploring the best options for Bermuda."

Tony Brannon, CEO of business development company Brannon Enterprises, said: "The time has come for this to happen in Bermuda.

"The hotels are dying; they are dead on their feet. They need to be able to compete. We need something to open up interest with people in Bermuda that have not been coming."