Many of the Island's gaming machines have been doctored to stack the odds against punters, an industry insider has claimed.

The source said the odds are up to 40 percent worse than similar machines in Las Vegas.

Slot machines are untaxed and unregulated by Government who intends to abolish them in July.

The insider said machines were rigged to avoid paying jackpots until they hit $18,000 to$30,000.

But this had sometimes backfired on owners because little jackpots encourage gamblers to keep going said the source.

Asked how the odds here compared to Vegas the source said: "People here are 40 percent worse off.

"You stand a better chance of winning in Vegas, they use a different standard in Vegas. What we have here could never be used in Vegas."

The source claimed things had turned for the worse after key gambling entities formed a partnership - including The Beach's Rick Olson and Spinning Wheel owner Vorhees Lightbourne.

However The Beach owner Rick Olsen said that partnership was only to develop gaming interests in Turks and Caicos, not in Bermuda.

He said most of the machines were tamper proof to stop abuse.

"I could not change them if I wanted to unless I was some sort of computer whizz.

"A couple of games can be manipulated but only a small percentage can be drastically changed."

Because of this the machines should be regulated said Mr. Olson, "so people know what to expect when they sit down".

Machines were set to pay out a certain percentage of hands said Mr. Olson.

Blackjack was set up to pay the house 51 percent of the time said Mr. Olson but other games had worse odds.

He said players would pick up quickly if they were being cheated.

Those who sat down determined to win the jackpot might soon run out of money but those chasing smaller prizes were more likely to get lucky said Mr. Olson.

A machine might not pay out a jackpot for a while as it built up but then some one would win big said Mr. Olson who said he can make up to $8,000 a week on the machines at The Beach.

“You might make a $1,000 a day but then you pay out $15,000 and you are then back to a marginal percentage - it's just like the stock market.”

One regular gaming machine player who contacted The Royal Gazette claimed some machines were rigged.

“They set the machines so the player can't win much money. It's highway robbery.”

And she said some machines advertised a big money jackpot was up for grabs when it had already gone.

“I have seen that happen. I have played the machines since they have been here.”

She said the regular pay outs had been ditched in favour of large jackpots which saw people going from one end of the Island to the other when word got around.

Recently one machine in St. George's was advertising a jackpot of $27,000. “Everyone was going down there.”

A big jackpot in Dockyard can have people leaving the east end heading west said the woman.

Seahorses manager Lee Beauchamp said the six machines at his licensed betting shop had not been doctored and his punters were satisfied with the pay outs.

But he added: “I understand from customers there appears to be unscrupulous operators on the Island basically ripping people off.

“Maybe it is appropriate for Government to appoint an independent auditor to keep an eye on these things so people are getting a fair crack of the whip.”

Mr. Beauchamp said regulation rather than abolition was the way to go because gamblers would simply resort to the Internet which had thousands of gaming and betting sites which took credit card money.

“It's more dangerous with a credit card than cash.”

His own business has been hit by the phenomenon as local gamblers seek to avoid the 20 percent tax in betting shops. Many place bets on line and then come to watch the races and results in his shop said Mr. Beauchamp.

He added: “I can understand their predicament.

“That's the highest rate anywhere in the world. We are losing a lot of business to the Internet. We would like to see legislation address that.”

Regulation would add cash to Government coffers and even the playing field, said Mr. Beauchamp, who fears some of the nine jobs at his business could be axed because of high betting tax.

However he declined to say what sort of tax should be levied on the gaming machines.