Since Florida passed legislation to allow slot machines at Broward County pari-mutuels and Governor Charlie Crist signed a compact with the Seminole Tribe that is bringing banked card games such as blackjack and baccarat to the Indian casinos, other gaming states have been watching their gambling revenues anxiously. Some time ago the Mississippi authorities were already expressing concern that expanded gambling in Florida would be to the detriment of its own gaming tax revenue.

The present economic climate is exacerbating the trend of diminishing casino returns, with many patrons staying closer to home for gambling entertainment or cutting back on gambling expenditure. Now it appears that The Bahamas are suffering the effects of fewer casino visitors and have a $15 million shortfall on projected tax revenue for the year ended 29 February 2008. The Government collected only $13 million in gaming tax and it is likely that this year’s figures will also fail to meet previous expectations.

This is bad news for casinos like Crystal Palace at the Wyndham Nassau Resort on Cable Beach, completely refurbished in 2006 by owner Baha Mar Development, a company that more recently lost its Cable Beach joint venture partner when Harrah’s Entertainment decided to pull out. Isle of Capri’s operation at Our Lucaya Resort has been problematic for years. The falling tourist numbers and subsequent economic decline on Grand Bahama led the company in December 2005 to request tax concessions and government financial assistance for marketing and promotion in return for not closing the casino.

Exactly one year ago the Minister of State for Tourism and Aviation Branville McCartney commented that the gaming industry continues to play a vital role in the economy of The Bahamas. He attributed gaming to being a major contributory factor to visitor numbers and tourism in the country, and the industry employs around 2,400 people, 87% being Bahamians. Bahamian residents are banned from gambling and religious opposition has so far forestalled any gaming expansion.

Last November the Minister called for more progressive gaming legislation to take account of technological changes including online gambling. Plans for a national lottery have not been realised. At a Gaming Board seminar McCartney said, “As an industry if gaming does not move forward the only other choice is to stagnate and die.” This Wednesday the Chairman of the Gaming Board, Malcolm Adderley, repeated the call for a review of the law, stating that as many Bahamians were gambling online it was antiquated reasoning that forbade them entry into casinos.

Falling gaming tax revenue seems to suggest that the gambling industry in The Bahamas, if not yet terminally ill, is decidedly unwell at present. It may just need the shot in the arm that opening casinos to residents, which include foreigners without the right to work, could be. (E-06.13.08)

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