The Government is pursuing amendments to the island’s banking legislation as a lifeline to bringing gaming to Bermuda.

Arianna Hodgson, the Junior Minister of Finance, updated the Senate yesterday in response to questions on securing banking for casino gaming.

Ms Hodgson said amending the Banks and Deposits Companies Act would allow banks to undertake transactions with businesses registered by the Bermuda Gaming Commission, with an amendment order to be published in due course.

She said the commission had secured independent expertise in the area.

She said technical officers in the Ministry of Finance had reviewed the commission and recommended meetings to confirm each bank’s status in serving casino gaming.

The commission met David Burt, the Premier and Minister of Finance, as well as bank representatives, in August and September 2023.

The ministry completed its talks with banks last month.

Ms Hodgson said Cabinet had been advised that local banks were unable to serve casinos on one or more of several grounds.

Problems included clashes with group policy, and cases where the risk-reward ratio “did not warrant the submission of an application to the relevant corresponding bank”.

She also cited extra costs from the high-risk nature of the business requiring more staff to oversee statutory requirements, including anti-money laundering requirements.

The Senate heard that banks advised there was “not enough revenue or potential revenue to discuss the relevant items with the corresponding banks”.

However, Ms Hodgson said there was “no issue with the gaming regime with reference to corresponding banks”.

“The issue is with the size of the gaming sector and generally, the willingness of banks to take on this line of business.”

As regards the audited financial statements of the commission, she said an audit for the financial year 2020 was completed in February this year and sent to the Ministry of Finance.

Ms Hodgson said the commission was working with the Office of the Auditor-General on more recent financial statements.

She said the commission’s principal performance indicator, in the absence of a casino industry, was “to become sustainable”.

“The ministry actually meets with the gaming commission as required to discuss all aspects of the commission’s performance.”

Opposition senator Dwayne Robinson asked about the Premier’s role in the gaming sector.

Ms Hodgson said: “It hasn’t been determined that the Premier’s role as the Minister of Finance has resulted in additional concerns.”