The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An additional $249 million could be injected into the Bahamian economy if proposed reforms to this nation’s casino gaming legislation are adopted, a leading executive yesterday disclosing that 16 out of 17 industry recommendations had been incorporated into the draft legislation.

Describing the economic impact projection as “conservative”, Robert Sands, Baha Mar’s senior vice-president of governmental and external affairs, told Tribune Business that the casino industry forecast was based on a 10 per cent increase in hotel occupancy.

This, he said, would result in a “more than $200 million” increase in visitor spending, and generate increases in departure, room and gaming taxes for the Government.

“We have been advised that the draft new Act and regulations have been submitted to the Cabinet of the Bahamas,” Mr Sands told Tribune Business.

“We have made 17 proposals, and have had multiple meetings on the submissions. We are waiting to be advised on the Government’s position on the documents submitted.”

The Gaming Act 2013, and associated regulations, will allow Bahamas-based casinos - those at Atlantis and Baha Mar, plus those at the Grand Lucayan and Bimini Bay resorts, to offer sports betting, in-play wagering and online gaming via cell phones and computers. There will also be incentives for ‘junket’ group visits.

The Bahamian casinos are also set to enjoy an expansion of their customer base, with the amended law removing the prohibition on non-Bahamian permanent residents and work permit holders gambling in their establishments.

“To the best of our knowledge, 16 of the 17 proposals were included in the draft legislation,” Mr Sands said. “We have not been advised what the final position is.

“The major proposal that did not meet with favourable consideration during the discussions and debate was the issue of field testing, where gaming devices are trialled for 180 days within a jurisdiction before the receipt of approved testing certification by an independent laboratory.

“The Government, in its wisdom, believes this jurisdiction should not be used for trial and error testing, but just somewhere where tried, tested and proven equipment is employed.”

Mr Sands added, though, that the passage of the new Gaming Act would stimulate increased investment in the Bahamas by new and existing casino players.

That already appears to be happening, with Cantor Gaming yesterday announcing it had signed a deal with Atlantis to provide the Paradise Island resort with “a complete mobile casino gaming and mobile sports wagering solution”.

Tribune Business revealed in October that Cantor was in talks to enter the Bahamian casino gaming market, and from April 29 it will offer Atlantis guests slots, table games and video poker via its mobile gaming platform. This will allow patrons to play, via their cell phones, from anywhere at the resort.

Cantor Gaming is also building Atlantis’s new race and sports book scheduled to open later this year, including mobile sports wagering.

“This modernisation will be landmark legislation for the Bahamas, bringing us into the 21st century with world class gaming laws,” Mr Sands told Tribune Business yesterday.

Pointing out that the existing Lotteries and Gaming Act had not been modernised since 1969, Mr Sands added: “The purpose of this modernisation will drive increases in casino revenue, an increased tax base and create “hundreds of new Bahamian jobs immediately”.

“It’s going to create and empower the Bahamian gaming industry to create a sustainable competitive advantage, in a meaningful way, against competing and expanding rival gaming jurisdictions.

“It’s going to provide a more competitive tourist destination. The biggest thing is that we’re going to expand Bahamian tourism, and leverage our unique location and access to population bases, and see an expansion of our reach.”

Disclosing that the Bahamian economy would expand by “hundreds of millions of dollars” if the proposed reforms became statute law, Mr Sands said of industry projections: “An incremental increase in hotel occupancies of 10 per cent generates more than $200 million in additional monies spent.

“By adding departure taxes and gaming taxes, plus occupancy tax, that would raise the total impact to $249 million. That’s a conservative estimate.”

Mr Sands said one or two new casino gaming features “could be jump started” straight away with passage of the reforms, adding that they were perfectly timed for the $2.6 billion Baha Mar redevelopment of Cable Beach. Its business model is very much centred on the 100,000 square foot casino, the largest in the Caribbean.

“By modernising, the Bahamas will position itself at the leading edge of industry best practice, technology, efficiency and profitability,” Mr Sands added.

“Time is of the essence.” Industry and the Government had spent almost a year working together on the current proposal, and Mr Sands said the casinos wanted the legislation passed “tomorrow”.