A notorious derelict ship in the East End is to be sunk and converted into a dive site after years of languishing at Marginal Wharf.

A decade after the casino ship arrived in Bermuda, swiftly running afoul of the island’s gaming laws, the Niobe Corinthian is finally heading for a new home under the sea.

The rusted ship has been long deemed a blemish at the wharf in St David’s, and is now being stripped in preparation for its addition to Bermuda’s catalogue of wrecks.

There has yet to be any official announcement, and its final resting place is not known — but The Royal Gazette understands that the ship is to be towed away after the end of this year’s hurricane season.

It was welcome news for St George’s North MP Kenneth Bascome, who has been calling for it to be converted to an artificial reef.

“I have wished for this for quite some time — I am approached on a daily basis by people who constantly tell me that it is an eyesore,” Mr Bascome said.

Originally built by Shell Oil, the refitted Niobe Corinthian first appeared in Bermuda waters in 2005 as a floating casino. It was dogged by controversy from the beginning.

Sidestepping the island’s anti-gaming laws, the 175ft ship had been fitted with slot machines purchased before Bermuda banned them in 2001 with the Prohibition of Gaming Machines Act. Its operators took the ship 12 miles offshore to international waters, where gambling became legal.

But the Niobe Corinthian still had to use Bermuda as its home port, and police raided it in August 2006, seizing 100 gaming machines.

The captain of the time, Fermin Reyes, was arrested along with manager George Kezas, and later convicted of illegally importing the machines into Bermuda.

There were other troubles for the ship, which was damaged by fire in 2007 the day before it prepared to set sail once more.

It was raided again by police in 2008. Legal actions abounded as the ship sat moored in St David’s, including a lengthy suit to pay back wages and repatriation costs for its crew.

Ultimately, the dilapidated ship remained at Marginal Wharf, which is owned by the Bermuda Land Development Company. Workmen have been busy in recent weeks getting it ready to be safely installed on the sea floor.

“With the potential of a marina in St George’s, cruise ships coming in, the America’s Cup being hosted by Bermuda and yachts that will be using the harbour, it’s about time,” Mr Bascome said.