Bermuda has lost two potential hotel developments unless political opposition to casinos changes, according to an agent for the developer.

The plans fell through after a debate in the House of Assembly on May 7 that saw widespread opposition to a Government green paper favouring the idea.

"These financial investors and property developers were looking at Bermuda for investing in a couple of properties although there were no contracts, just inquiries," said the agent, who asked to remain anonymous.

"They were watching and monitoring what was going on regarding the gaming issue. They have hotel interests in the rest of the world with small Monaco-style casinos attached to their hotels.

"They were watching to see how the green paper developed and were in discussions with various properties in connection with hotel developments. It was at a very preliminary stage and there was no contract signed.

"They have small operations in some pretty exotic places and were interested in Bermuda. It's a great location and there was the possibility that a sophisticated casino might come. If they were to do any development here, they would want to see that included.

"Since that doesn't seem to be going forward, they're not interested in doing any kind of development. Here we have people that could have raised $350 million of development capital which they have done before.

"But because of the way the debate went on the Green Paper, they are not interested in Bermuda any more. They will go elsewhere, they've got other things on the go."

The agent said he was speaking to the media with the blessing of the developers. However, he explained they do not want details of the development proposals or their names made public, for fear of damaging later negotiations if the political climate changes.

"I think it's in the interests of the Country to know these people are not coming. That needs to be borne in mind," said the agent.

"They've described Bermuda as being stale and dated. These are not people looking to make money out of a casino. They are looking to make it from hotels, but with the opportunity they have elsewhere in the world to have a casino.

"As of last Friday, they're not interested. They're not going to put any signatures on the papers and commit finances to it. They will move on. These aren't the type of people interested in lobbying in Bermuda."

The agent said one of the developments would have been at an existing property, while the other would have been a new build on an existing site. Both would have been five-star hotels.

The investors have been interested in Bermuda since prior to Premier Ewart Brown coming to power and taking a pro-gaming stance.

Dr. Brown initiated the Green Paper recommending casinos to boost flagging tourism. However, he appeared to back away from bringing legislation in the form of a follow-up White Paper after 14 of his Government MPs said they opposed it.

During the lengthy debate, 24 MPs spoke out against the Green Paper, including Deputy Premier Paula Cox and six members of Cabinet. Only five MPs came out in support of it, including two members of the Bermuda Democratic Alliance.

Referring to the Deputy Premier's anti-gaming stance, the agent said: "Paula Cox has suggested local entertainment instead, but that's a joke. They don't see us as being forward thinking in regards to having an international competitive edge."

• The Roman Catholic church recently issued a statement on gaming in Bermuda.

"The establishment of a casino in Bermuda can be good or bad depending upon the use that people make of the casino," said church leaders. "In and of itself, a casino is not intrinsically evil. The decision to establish a casino in Bermuda depends upon the prudent judgement of the Bermuda Government, including adequate provisions for regulating the casino for the benefit of the common good.

"The predicted benefits to Bermuda tourism and job creation will have to be measured against the legitimate fears that have been raised regarding the mental health problems, potential excessive debt and the family and social problems associated with gambling addictions as well as the criminal elements that are often associated with casinos and gambling."