The Government is providing the requisite support for the island’s stalled gaming sector to materialise, the Premier insisted yesterday.

David Burt told the House of Assembly that communications with the US Office of the Comptroller of Currency, the primary federal regulator for the US banking system, had resolved the impasse over correspondent banking that had hamstrung gaming in Bermuda.

He added: “Now we just need to make sure that we have the local demand so that those particular matters can get up and running.”

The Premier made the claim in responses to questions by Ben Smith, the Leader of the Opposition, on whether the Government’s gaming policy had “failed”.

It followed a comment last week by the Premier on a lack of appetite from the private sector to advance a gaming industry.

Both the Hamilton Princess & Beach Club and the St Regis hotel in St George’s have tried unsuccessfully to deliver casinos.

Mr Burt told MPs that “casinos which are licensed” in Bermuda were insufficient to muster banking services.

“That is the reality of the situation; that is what has been stated — the Government cannot bank the proceeds of gaming.”

Although the issue dates back to 2014, when the Gaming Act 2014 was passed, Mr Burt said: “We are at least in a positive place where banks are willing to bank the proceeds of gaming.

“The question is the volume which is required — and unfortunately, the only casino that is licensed for operation does not have the volume that the private sector is willing to support.

“So when there is a future opportunity for more casinos to come online, then we are hopeful.

“But this is just a practical reality where we find ourselves.”

He told the House that earlier pledges by casinos and a commercial bank to support gaming had made it seem viable as an industry — until the would-be banking partner proved unwilling.

Mr Burt said a previous US administration’s sharper scrutiny of correspondent banking had cast a chill over gaming.

He added: “We now have a new administration in Washington DC who has removed some of the challenges that were posed towards correspondent banking based on reputation damage on both the domestic side and also the international side.”

Noting the requisite regulations in place and millions spent, Mr Smith asked the Premier who should be “held accountable for us not having an operating casino in Bermuda”.

Mr Burt responded: “If the Government is to be held accountable, then the Government will open its own casino.”

He said developing the industry was a matter for the private sector to decide.

Mr Burt said: “Hamilton Princess … because the banking partner that did say they were going to provide casino gaming, backed away from that — that is their choice, that is their decision”.

In January 2023, US gaming company Century Casinos, which had sought a casino at the resort, pulled out of the project blaming continuing delays.

The hotel has said it has also ceased searching for a new operator until the Bermuda Gaming Commission offered a “viable path forward”.

In October 2024, Laura Purroy, of Hotelco Bermuda Holding Ltd, co-owner of the St Regis, told The Royal Gazette that the refusal of local banks to handle gaming proceeds led to the plug getting pulled after million were invested and a casino was “fully in place”.

She said the hotel, dissatisfied with the island’s regulatory regime, opted out of paying its $600,000 licence issue fee to the gaming commission once it became clear the project could not proceed.

Last Friday, the Premier told the House that the Fairmont Southampton held a casino licence and could revive interest in gaming.

However, yesterday he clarified: “The Fairmont Southampton has a designated site order … in the future they may get a casino licence and that may provide the sufficient volume for the private sector to bank the industry.”

A spokesman for the owners of the hotel told the Gazette that the Fairmont Southampton had no room for a casino under its expansion plans.

He added: “The current focus is the renovation and reopening of the hotel. A casino is not within the scope of work for the renovation and will not be in place when the resort reopens.”

Douglas DeCouto, the Shadow Minister of Finance, called last week in the House for the Gaming Commission to be shut down, and told the Gazette that gaming has failed in Bermuda.

He said: “Our position for the past several years has been, get gaming going or shut it down. Clearly getting gaming going is not happening.

“It's clear that gaming has failed in Bermuda. We know that the political interference did not help.”

He added: “What we do know is they have been spending $800,000 a year for the last several years with nothing to show for it.

“Now has to be the time to shut it down, especially acknowledging the Premier's comments that there is no commercial appetite by the banks.

“These things should all be put on ice until something changes.”