Bahamas proposes sweeping changes to gaming industry
Bahamas Tourism Minister Obie Wilchcombe
(CNS Business): The government of The Bahamas has decided to go against the result of referendum and press on with the proposed comprehensive legislation aimed at regularizing the gaming industry in the country. The referendum to legalize gambling for citizens in January 2013, which cost taxpayers $1.2m, resulted in a ‘no’ majority vote. Nevertheless, Tourism Minister Obie Wilchcombe said the government could not avoid moving forward with regularising number houses because the Central Bank of the Bahamas warned that unregulated web shops were expected to harm the financial services sector.
Casinos on the islands have applauded the proposed regulations, claiming they would help to expand The Bahamas’ international tourism industry, which accounts for approximately 55 percent of all Bahamian jobs and nearly half of the country’s gross domestic product. Wilchcombe introduced the relevant legislation in the House of Assembly on 3 September. “I am pleased today to bring to Parliament a new cutting edge comprehensive Gaming Bill, Gaming Regulations and Gaming House Regulations, which are designed to more effectively control and revolutionize Gaming in The Bahamas for the greater benefit of the economy and people of our country,†he said.
The proposed new regulations would allow casino licensees that are licensed on or before 1 February 2015 and are part of a resort hotel to operate remote wagering and proxy wagering systems. Players would also be able to place a bet without physically being on site, via proxy and technical aids. They could also wager online and via mobile gaming devices from anywhere on the campus of a licensed casino facility.
The law would also introduce a streamlined process for enforcement of all debts incurred by gaming activities at a licensed casino and expedite the process by which licensed operators can collect debts from patrons once they leave the jurisdiction. Casinos would also be able to accept wagers on a sports event after the game has started and remains underway.
Mega-resort Baha Mar said the changes also would help the $3.5 billion integrated gaming resort become a greater driver of the Bahamian economy after its grand opening in late spring 2015.
“These regulatory updates would provide The Bahamas and Baha Mar with a sustainable competitive advantage, which is vital for an economy driven by international tourism,” Sarkis Izmirlian, Baha Mar’s chairman and chief executive officer, said. “The Bahamas has long been known as a stable gaming jurisdiction, and these new regulations would put us on a level playing field with the world’s most successful casino markets such as Las Vegas, Singapore and Macau. The regulations also would allow us to offer private VIP gaming salons, enhanced lines of credit, gaming junkets and other amenities vital to attracting affluent international casino customers.”
Paul Pusateri, Baha Mar’s chief operating officer, said, “The new regulations and laws would enhance Baha Mar’s ability to generate strong gaming revenues. Technology-driven amenities such as internet gaming, mobile gaming and in-play sports betting will help differentiate The Bahamas in the highly competitive gaming sector. They definitely will help Baha Mar attract players from the Eastern United States, Latin America, Asia and other markets that will be important to our success.”
Although voter turnout was said to be low, Bahamian voters rejected a referendum to legalize gambling for citizens on Monday, 28 January 2013. The two-part referendum asked whether the gambling shops should be legalized, regulated and taxed, and if the government should create its own national lottery.
Noting that the government owed the public “an appreciative apology”, Wilchcombe told reporters last week, “But when the Central Bank raises a red flag and says a problem is developing we have to, because of our financial services sector being in jeopardy (and) facing difficulties, then we had to make a decision and the best decision was to regulate (the sector). We had the Attorney General travel around the world and talk to individuals to ensure that we were putting the legislation the way it needed to be done and it could stand up to scrutiny. We think we have done a good job.”
Category: Stay-over tourism, Tourism
I was recently asked ‘why do you object so vociferously to any gaming in Cayman’ in the context of a ‘what about Bahamas style gambling’ discussion among friends. ‘Its the thin edge of the wedge’ I answered. And the first line of this article (and the last paragraph) proves the point. Even when the public reject increased gambling the government ignores them and does it anyway. ‘Because they know best for us’. These guys and our C$C/COC/etc. will get along great. – Keep Cayman Casino Free.