By Anas Almasri
On the backdrop of changing political parties at the helm of Bermuda's government, the island seems set to finally change a law banning all gaming and casino activities on the island as well as onboard of cruise ships docked in any of its ports. The only exception to that being in case the entertainment is provided by Bermudians.
An attempt to adjust the regulation was rejected by Bermuda's Parliament in 2009. In December of last year however, the One Bermuda Alliance (OBA) won the elections and took the reins from the Progressive Labor Party (PLP), which had ruled for the last 14 years. One of the winning points for voters was the introduction of casino gaming options, which the new government said it would support, provided sufficient consultation took place.
According to the same law, cruises ships are also obliged to close down any entertainment options and retail shops while docking in Bermuda. Even on Sundays, when many shops on the island itself are closed. Operators of major cruise ships have repeatedly voiced their views that such on-board restrictions were not passenger-friendly and hurt their businesses.
The OBA-led government avoided promising a gaming referendum in their February 2013 Throne Speech, indicating its possible intent to skip the referendum process and its associated costs and directly introduce gaming legislation. Increasing the likelihood of a shortened timeframe for the new law to be instated in the island.
Officials are keen on attracting new foreign investments as well as new hotel developments and approving gaming licenses would undoubtedly encourage such investors. The overseas British Territory has always heavily relied on high net worth tourists and business travelers, and is the only tropical island within one and a half hours of flight from the United States East Coast metropolises of New York City, Boston, and Washington D.C.
Bermuda saw the second highest number of cruise ship visitors in the island's history in 2012, nearly 385,200 visitors arriving on 162 cruise ships. They accounted for 60 percent of its visitors between March and Dec of that year. Even the previous ruling party was reportedly split on the matter of allowing casino licensing, a move that would increase cruise ships revenues as well as that of Bermuda.
Last year, then-Deputy Premier Burgess told the media he held meetings in Florida with officials from Norwegian, Royal Caribbean, Princess, MSC, Carnival and Regent Seven Seas cruise lines to obtain feedback on Bermuda's 2011 cruise ship season. He stated that executives raised the issue of on-board revenue, adding, "Bermuda is the one of the few ports in the world where ships routinely have multiple night stays and currently the requirement is that the casinos and shops must remain closed while the ships are in port. This has a huge effect on on-board revenue. With this in mind, it has been made clear that the on-board revenue is achieved mainly through their casinos and shops."
Bermuda's real estate sector is tipped to experience major growth if and when the gaming introduction is finalized. Due to its small size, there are finite opportunities to acquire Grade A real estate on the island. Casino licensing would bring about new hotel development projects, which will in turn drive up the prices of properties as supply diminishes thereby increasing investment returns for investors. Whenever gaming is opened up, hoteliers and reality developers that are strongly positioned in the market stand to benefit quite a lot.
