Former Premier Sir John Swan says Government should put the issue of gambling to a referendum.

Sir John (pictured) has been vocal on the need for a casino in Front Street to draw big spending tourists to the Island but said the laws on gambling were confused. He said: "We have gaming but we are not sure whether it is illegal or not." People needed to express their views on what was a non-partisan issue, said Sir. John.

"Rather than have a confrontation with the church have a referendum."

He said he believed even the church was divided over the issue. "To what extent I don't know. I don't want to pre-empt anybody."

Sir John said he had respect for the new Government under Alex Scott which he said was open to new ideas. "We have to look at what will make Bermuda a place people find exciting."

He said tickets, hotels and expenses were high for tourists so those who came would likely want up-market entertainment such as casinos.

Such people were used to big spending mini breaks, said Sir John, who added they could boost hotel bed nights and help keep people working while increasing Government revenue from taxes.

"They want activities at night when they go out, they want entertainment after going to a restaurant. They are proactive people, that's why they have money."

Sir John said he backed having one casino on Hamilton rather than granting them for every hotel that applied after noting other places did not have many. The reason you would put it in Hamilton is because it has the critical mass."

However, Sir John said he was against barring locals from casinos and making them tourist-only premises ? a formula practised in the Bahamas.

He said: "I fundamentally don't believe in segregation."

He said locals had been banned by the Bahamas Government when it was run by a white elite who didn't want to mix with poor blacks.

Bermuda's population was much wealthier, said Sir. John, but banning gambling merely meant locals took their money out of the country to spend abroad in Las Vegas and other destinations. "At the moment it is all very confusing. We are told gambling is illegal but we have a proliferation of slot machines and there are one or two places where there are gambling activities. Are these places illegal or not?

"We have betting shops, slot machines, Crown and Anchor, we have bingo we have Internet gambling."

Meanwhile, people were doing pools and overseas lotteries said Sir John. "Bermudians are going to do it one way or another."