A ban on gaming machines is a gamble with Bermuda's future prosperity, industry insiders warned yesterday.

And they called for gambling to be made legal in Bermuda -- but with strict controls and taxation -- to boost the economy and help to rescue the ailing tourism industry.

But Shadow Environment Minister Gary Pitman said a Government compromise deal on the machines -- no new ones and existing ones allowed to operate -- should be replaced with a phased-in full stop.

But one insider said: "I think it should be allowed -- gambling for tourists or a couple of casinos could only help Bermuda.

"It's about getting as many people in the hotels as possible, spending as much as they can -- and wanting to come back again.'' And she added: "It should be made legal and controlled -- every liquor licence should be allowed, say, three machines, pay a licence for the machine and a tax to the Government, then everybody would be happy.'' She said: "It's a very fragile economy and we're relying very much on offshore business -- without that, Bermuda will plummet.

"Bermuda needs to concentrate on tourism and when international business deteriorates -- which is inevitable -- we will need it.'' Another added: "If we don't have it, a lot of establishments which have these machines will go out of business.

"That's what's keeping a lot of them afloat and it's not only locals who are using the machines, it's tourists as well.'' He added: "If you look at any city which has brought gambling in, just about anywhere you go, it's a massive earner.'' And he said: "If Government wants to tax it, fine -- it's more revenue and other taxes won't go any higher.'' The insiders spoke out after Government announced that the machines -- usually offering a version of blackjack or poker -- were set to have a ban slapped on them.

But a compromise deal is likely to allow existing machines to carry on dealing until they reach the end of their lifespan.

Premier Jennifer Smith said that new legislation would have to be drafted to outlaw the importation of the machines -- but appeared to suggest that the existing machines would be allowed to operate in the meantime without interference or Police intervention.

And she promised "fact-finding and consultation'' followed by a decision on legislation.

Gamblers speak out, Page 2 Insiders pan gambling ban But an insider said: "It's kind of typical -- make everyone happy. They're saying `we're against them, we're going to ban them, but we're going to consult on them'.'' And she predicted: "Both locals and tourists will be very angry if these machines are banned.'' She added that fears of a few years ago that allowing gambling would lead to serious addictions had proved unfounded.

She said: "I think gamblers in Bermuda are recreational gamblers -- there are people with a problem, but it's very much a minority.'' And he pointed out that alcohol could also be abused -- but that no one seriously suggested banning it.

But Mr. Pitman slammed the compromise plan to ban new gambling machines and to allow ones already here to be used until they fall to bits.

He said: "I'm glad they are moving to ban the machines but this compromise will create a monopoly for places which have them.'' "How long will it take for them to run out of steam? If you keep getting the spare parts you could keep them going for 15 or 20 years.'' The ban has yet to take effect which means that pubs and clubs could get new machines in now.

Mr. Pitman added: "Machines could be around for years. They should have had a total ban phased in over the next six months.'' GOVERNMENT GVT TOURISM TOU