Next year Government will ban gaming machines. But some argue Bermuda's laws on gambling are contradictory and self-defeating and tonight Progressive Labour Party members will be urged to look at the issue again. Reporter Matthew Taylor looks further at the issue of gambling.

Up to 300 jobs will be lost and restaurants and bars will close down if Government carries out its threat to ban gaming machines next year, predicts The Beach owner Rick Olson.

However Premier Alex Scott told Government had no plans to budge from the July 1, 2004 abolition date.

It was set out in the Prohibition of Gaming Machines Act 2001 which gave bar owners time to diversify said Mr. Scott. Mr. Olson said bar owners were lobbying Government hard to overlook that date. He said: "I think everyone expects something to come about. There is a lot of talk about casinos recently.

"A lot of people depend on gaming machines to keep open and I think Government realises if it comes places might close down. They are well aware of that. "Everyone is lobbying ministers but I haven't lobbied personally."

He said he would be forced to reduce hours and wages at The Beach and his Somerset restaurant Salt Rock Grill if gaming machines were axed. "There are definitely four to ten places around the island that could not survive on their existing revenue. Gaming machines are a huge part of the revenue, sometimes up to 50 percent or more."

"Two to three hundred people directly would lose their jobs. There's probably about seven to eight technicians who fix machines who would not be needed plus there are cashiers who deal directly with payments."

But Mr. Scott said business owners with gaming machines are well aware of the July deadline for the gaming machine ban. "It was a much publicised date. I would have thought it was a case of buyer beware for those structuring businesses on something which is going out."

He said those businesses had plenty of time to diversify. "As for 300 jobs lost it seems like someone is making a point rather than a factual presentation."

He said gaming machines attracted those least able to afford it. "The wealthy are not playing."

Mr. Olson has business interests in Turks and Caicos which he says has a similar religious lobby to Bermuda.

But gaming machines on the Caribbean island are legal and taxed and put millions of dollars into the economy, said Mr. Olson. "That's the only way to do it. We can't continue the way we are going. It isn't fair to the general public. We should be paying our fair share of tax. At the moment we pay zero. It isn't recognised ? either legally or illegally."

A 20 percent levy would be fair said Mr. Olson who estimated there were more than 300 machines on the island.

He believes bar owners would be willing to drop their bid to get costs and damages from Government after last year's botched seizure of gaming machines if Government let the machines stay. Police and Customs seized more than 330 gambling units in their investigation into the importation of illegal spare parts last year.

Under the Prohibition of Gaming Machines Act 2001, premises with machines are able to use them, however, if they break down, they are not able to repair them with new parts.

Government is appealing the November 2002 decision by Assistant Justice Archibald Warner to award costs and damages and is set to go back to court on next Wednesday. The judge found the machines had been seized with illegal warrants. But Mr. Olson believes one of the reasons the appeal hearing had been delayed was due to embarrassment over the whole gaming machine matter.

"We would drop all costs if they would clear up the grey area and extend this. We are not out to make money. We don't want our livelihood taken away from us. "Government is fairly receptive. They realise they need other sources of revenue. It's of some benefit to tourism.

"It's a question of how to make it politically correct. They are afraid to touch the issue. As individuals they are very receptive but they are afraid of the political implications. People are afraid of the church lobby."

He said the laws against gambling were doomed to failure as it was impossible to stop online gambling. "That's why the thing at Flanagan's has taken off.

"Everyone is playing on-line poker right now. It's hugely popular. I know 20 of my friends do it and I only have 20 friends.

"I play it every night. You can do five minutes or five hours. You can do it in your bedroom sitting in your underpants. You don't have to get dressed up and go to a casino. It won't go away unless you ban computers."