HAMILTON, Bermuda, CMC — Representatives of the operators of Bermuda’s newest large hotel, St Regis, are to hold talks next week about the future of the east-end resort’s casino plans.
Senior officials from the Marriott group, which operates St Regis, which opened in 2021, are flying in for urgent discussions about the casino. The move follows the collapse of a bid to introduce casino gambling at the Hamilton Princess & Beach Club, the island’s oldest hotel,
The Royal Gazette newspaper said it needed to be clarified if the Marriott representatives would meet the Progressive Labour Party (PLP) government or the Bermuda Gaming Commission (BGC) members.
The newspaper has quoted informed sources as saying that a significant deterrent for US banks to become involved in creating a casino business is a perception that Premier and Tourism Minister David Burt has “too close” a relationship with the BGC, which regulates gambling on the island.
The insiders have also claimed that the legislative regime imposed by the PLP government is too cumbersome and wide-ranging to attract investment to a small market such as Bermuda, the Gazette reported.
Century Casinos announced last week that it had withdrawn from a planned casino at the Princess, alluding to too much red tape being involved. The hotel said it had also ceased searching for a new operator until the BGC could provide a “viable path forward.”
“This is not about politics or personalities. It is about a power structure,’ the Gazette reported.
“The US banks are very reluctant to get involved in Bermuda when they see the head of government [Burt] has a close relationship with the gaming commission. The US correspondent banks are saying not to Bermuda at the moment.”
Another prominent business source said any suggestion the BGC was independent of government was “ludicrous.”
“[Bermuda Gaming] commissioners can be fired at will. They take direction from the government. That’s a red light to US banks.”
A government spokeswoman said a solution to the banking issue had not materialized.
“Irrespective of where ministerial responsibility under the gaming legislation may lie, the simple fact is that no solution to the banking issue has been forthcoming,” she said, adding, “meetings between regulators and potential operators do not involve ministers.
“The government’s responsibility is to ensure that legislation enables growth and economic recovery. In the case of gaming, the government will consider what further amendments may need to be made to facilitate an amenity-style casino operation as proposed by local hotels<’ the spokeswoman added.
The government highlighted the creation of a casino industry as one of its four critical drivers of economic growth. The island is currently grappling with a national debt of US$3.35 billion.
Another key initiative is currently in flux, with the push for vertical farming put on hold after an overseas company behind the scheme reported huge losses.
Legislation passed in 2014 during the One Bermuda Alliance’s one term in office allowed for a maximum of four casinos on the island and created the Bermuda Casino Gaming Commission.
The Princess received a provisional casino license in 2017.
Premier Burt had predicted in 2021 that the island’s first casino would be open by the end of that year.
The renamed Bermuda Gaming Commission’s remit was widened in 2021 to include betting shops, lotteries, and cruise ship casinos.
St Regis, built on a site close to the demolished Club Med, was granted a formal casino license in October 2022.
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