Eight Bermudians face uncertain futures after losing their jobs as a result of Government's gaming machine ban forcing a business to close its doors.

John Kiernan, managing director of the Palace, a business on Reid Street East that he described as an adult entertainment emporium, has decided to close up after the legislation banning the betting machines was put in place earlier this month.

"It is a sad day, we were 100 percent staffed with Bermudians," Mr. Kiernan said, saying his decision to close,was "100 percent because of the gaming ban".

He added that economically it was not possible to stay open after losing the gaming revenue; the Bermudian proprietor - a veteran of the food and beverage industry - will be closing his doors after four years running the gaming machines.

"It comes down to economics. To run the place and not make money is not what we can do."

Although it was known for some time that Government planned to ban gaming machines, Mr. Kiernan said they had still decided to carry on with the business, and saw the business as catering to those looking for safe, fun entertainment for adults.

"You could say that we knew this was going to happen. But there was an opportunity, given the way the legislation was previously written, for them to stay (the ban)."

For a time after the ban was made law Mr. Kiernan said he kept the doors open to let in clients who simply wanted to play the machines - in demo mode - with no gaming money being taken in or paid out. That left the Palace with only one source of revenue - bar sales - which were not high enough to pay the bills.

In fact, Mr. Kiernan said the Palace got very little of its revenue from having a full bar. "There is a big misconception that game players are falling down drunk. That is not the case."

Indeed, Mr. Kiernan said he doubted the viability of taking the machines out and relying solely on bar receipts to keep the business going.

It is a road he has been down before, with his having first run the space as nightclub Studio 55. He said he switched game plans when the bar business started to fall off.

"We had a good experience as a nightclub but there was a drop in clientele. Then we took a chance with the gaming machines because nightlife in Bermuda was suffering, and it is still dying, in my opinion."

Although he said the Island's bars had in decades past been hopping, the "onstlaught" of cable television and other in-home forms of entertainment meant people stopped going out as much. He said that, coupled with a drop in tourist numbers through the years, had put increasing pressure on bars and clubs to make ends meet.

"I can only speak for our business but eight full-time staff, all of whom were former hotel employees tired of only having maybe six months of solid work and who found well paid here, have all lost their jobs."

Mr. Kiernan said not only had he paid his staff well, but they also got full benefits including major medical and dental coverage, as well as paid vacation time.

He praised the staff as hard working and loyal, but added that through no fault of their own, they were now left without jobs.

As for his opinions on the ban, Mr. Kiernan said his clientele were after entertainment - not feeding an addiction. He pointed out that the majority of the thriving tourist spots around the world had casinos.

"If the entire world, especially tourism areas have casinos, what makes us so different," he said.

Mr. Kiernan said the Palace had had a good clientele and disagreed with those who assume the punters that frequented his establishment were gamblers risking financial ruin through their pastime.

"This is what we did. We were in the gaming business," Mr. Kiernan said as he looked around the large premises of the Palace, still filled with gaming machines now programmed to comply with the ban which prohibits them from accepting bets.

"There is a difference between gaming and gambling. People that have a problem are gamblers, but what we offered was gaming. It is adult entertainment," he said.

"People are treating this as an addiction," he said, but that interpretation was narrow minded as statistics show that on average, only a small number of people get into trouble with gambling.

Indeed, staff at the Palace would not accept third-party or personal cheques, nor were any credits given. Customers could only play with cash or after an authorised credit card transaction.

"We would be out of business if people who came here didn't have money," he said, and pointed out that the business had also carried brochures with a series of ten questions on 'Do you have a gambling problem?' and advising people to seek help if they had answered yes to more than three questions.

Mr. Kiernan told The Royal Gazette he has closed the doors but he would not be drawn on future plans, saying he had not yet made a definitive decision on what he will do next with the space - if anything.

Meanwhile, popular Front Street bar The Beach said it had converted its gaming room into a sports room but hours have had to be cut as a result of the ban.

General manager Duncan Adams said: "We have not had to lay off anybody, not yet, but some are working less hours."