Casino gaming would attract tourists, promote development, create jobs and generate millions of dollars in tax revenue, according to a report on the pros and cons of gambling in Bermuda.
The $300,000 report, produced by overseas consultants Innovation Group, states that the benefits of a national lottery, internet gambling and reintroducing gambling machines, would be limited.
But it strongly recommends the introduction of a casino, preferably in downtown Hamilton.
"While casino style gaming may not be viewed as a panacea to correct Bermuda's tourism challenges, the country is losing out on opportunities by not having casino gaming," it states.
The report states that one in four U.S. travellers cite casinos as a factor in choosing where to go on vacation and indicates that a casino would help deal with a perceived lack of evening entertainment for tourists.
The report also recommends that major hotels are allowed to run their own on-site casinos and suggests allowing casino gaming would attract more development to Bermuda.
"Gaming can be a catalyst that allows new projects to occur because it enhances the potential profits and consequently can work in attracting the financing new projects need."
It adds: "It is likely that several of the planned hotel projects currently in hiatus would move forward as a direct consequence of the advent of gaming in Bermuda."
The report estimates that a solitary casino in Hamilton could bring in almost $84 million in gaming revenues each year - roughly $19m from locals and $65million from visitors.
Based on a recommended minimum ten per cent tax, Government's direct take would be $8.4million.
But the report speculates that the net revenue in terms of increased tourism and development would be much higher.
The Bermuda Task Force on Gaming, which compiled its own report to Cabinet based on the findings of the research group, also indicates that a rental agreement with a Casino could also generate profits.
"If developed and operated on Government or Quango land then it would be our view that the operator would lease the site and Government's revenue would be derived from the collection of rent of the site which may include a portion of net profits."
The Innovation report also projects that a casino would create nearly 2,000 jobs, with 855 directly employed and a further 900 jobs created as a result of the increase in tourism related business the casino would bring.
Existing hotels would also benefit with a projected increase in room demand of 16.2 per cent (based on one casino in Hamilton), according to the report.
