By Dennise Williams, Staff Reporter
FULL-FLEDGED casinos are on the horizon. Exotic games of chance such as French and English roulette, bacarra, blackjack, banque a deux, chemin de fer, and stud poker played in the backdrop of elegant surroundings backed by gourmet restaurants and four-star accommodations could possibly be the order of the day in Jamaica.
And while gambling in its many forms are already a fact of life in Jamaica, many see casinos and the high net worth gamers they attract as the missing ingredient that will take Jamaica's tourism product to the next level.
OPERATING IN A LIMITED FORM
In order to be in the game early, a number of casinos are operating in a limited form, focusing on slot machines and electronic games of chance. Casinocity.com reveals the following casinos across the island.
Kingston
- Terra Nova Hotel
- Monte Carlo Gaming
Montego Bay
- Coral Cliff Hotel
- Holiday Inn Sun Spree Resort
Negril
- Jungle Negril
- Hedonism II Resort
Ocho Rios
- Hedonism III Resort
- Renaissance Jamaica Grande
Resort
- Treasure Hunt
And so the players in the market, who spoke to the Financial Gleaner on the condition of anonymity, believed that the revenues generated by casinos have the power to revalue the local currency, if --and this is strongly emphasised regulations are in place to protect ordinary Jamaicans from squandering their income on the hope of big winnings. The key to success, they argue, is to attract the international 'whales' gamblers who can drop US$1 million on a card table, lose it and walk away smiling.
HARMONY COVE
A real estate developer with prospective interest in Harmony Cove, the Government's high end, 1,400 high acre resort project in Trelawny, believes the most important factor in creating a winning casino product is control of access to the casinos.
"Casinos must be regulated. Jamaicans must not be allowed into casinos. We are a nation of gamblers. I have lost a good staff member to gambling. It is just too tempting. People see themselves making $600,000 in one day and it ruins them for the rest of their lives. The odds are that they will never win like that again. I want no Jamaican to be able to go into a casino unless they have a foreign passport and are net earners of foreign exchange. The best way is to regulate the casinos to ensure that gamblers fly into Jamaica and stay no longer than 30 days." However, the developer believes that casinos coming into Jamaica "are a must."
ADDICTIVE GAMBLING
An economist in the financial sector, who has keenly studied casinos, does not believe Jamaicans will accept exclusion from casinos, although he is cognisant of the detrimental effect of addictive gambling.
"Looking at the casino model in the island of Bahamas, the local people are not allowed to gamble. But I don't think Jamaicans will accept that. We are a gambling nation and the Lotto company receipts prove it."
Supreme Ventures, the nation's sole lottery company, made $12 billion in revenues last year and is expected to make $15 billion by the end of 2004. The economist continues, "One option would be to have only guests of certain hotels allowed into the casino. Let's face it, gambling can be detrimental to a person's income."
DRAWBACKS
However, despite the drawbacks, the lure of the gambling dollar cannot be denied. Our economist spoke of the 'linkages' that will be spun off from casinos.
"Casinos will bring new hotels, which leads to new construction, increased demand for agricultural products and increased demand for transportation services. Other linkages are even more obvious increased travel into Jamaica. Travel companies and tour operators will benefit tremendously from casinos. Look at it this way, while daddy is gambling, the kids could go on sightseeing tours in Jamaica. The secondary benefits will spin off right to the manufacturing sector. Off the top of my head, I can see increased uniform manufacturing for the many new employees that hotels and casinos will require."
CHAMPING AT THE BIT
The economist believes that hoteliers in Jamaica are champing at the bit. Moves are being made to set up the framework to entice international gamblers to our island.
He states, "There is talk that Raymond Chang, Canadian billionaire and brother of Island Grill owner Thylia Lyn, wants to buy the Hilton Kingston and Pegasus Hotels to link their parking lots and place a casino/conference centre between them.
"Remember that the Courtleigh Hotel is between the two hotels only in the front; around the back there is a lot of land space to create an exclusive casino. And I would not be surprised if the Hendrickson family doesn't make a big play after casinos with their purchase of the Renaissance Jamaica Grande hotel in Ocho Rios.
BUILDING MASSIVE HOTELS
"Of course, no one believes that the Spanish hoteliers Rio or the Pinero Group are building those massive hotels on the north coast without some foresight into the legalisation of casinos. If they did not think that casinos were coming, they could lock shop and go home, and be no worse off.
"There is also talk of the Indian community building a massive in bond facility between the Wyndham and Ritz-Carlton hotels in Ocho Rios. It would be an easy conversion to a casino and they would capture the traffic from those two hotels. The north coast is already set up for casinos."
EASY CONVERSION
It is believed that ballrooms of all the major hotels in Jamaica could be converted to casinos with relative ease. States the economist, "Revenues from casinos would be far more consistent and higher than renting a ballroom for a conference."
The players see casino gambling as necessary. States the real estate developer, "Casinos will enhance the tourism product. It adds an entertainment feature as many nights after dinner, you have nothing to do. One night you listen to reggae, the next night you gamble, it lends variety." The economist agrees, "People like to have fun after a conference or meeting at a venue. Casinos are like a bonus part of any trip."
DOWNSIDES
Coming back to the downsides of casino gambling, increased crime is a major concern.
The economist states that increased police resources and new jobs are the answers. "The downsides are really not that high. Casinos will have to pay well to attract competent staff that won't steal from you. Job and wealth creation will turn the crime problem around. The money that flows from increased tax revenue would go into fighting crime. If the increased government revenue is managed properly, I can't see more crime in the face of more jobs for Jamaicans."
The economist sees the growth in the economy in the form of another 2 to 2.5 per cent growth in Gross Domestic Product. Revenue from existing taxes would rise, plus, he asserts, Government would have the benefit of tacking on a "sin tax on all gambling based on volume of profits."
He states, "The play is already lining up you need hotels, proper road infrastructure and legislation."
