Edward Seaga, Contributor
THE RECENT Don Anderson poll finds that the majority of Jamaicans (56.7 per cent) say 'no' to casinos while a minority (42.3 per cent) say 'yes'. Only a minimal number (1 per cent) have no view. The views are, therefore, precise, one way or the other.
The finding is made largely in isolation of the reality that casino-type gaming houses already exist on a wide basis in Jamaica, consequent on the inflow of gaming machines imported from the beginning of the 1990s. This surprising influx of large quantities of slot machines was one of the first policy shifts of the government of the PNP after winning the general election in 1989. Since then, slot machines are all over the island mainly, but not exclusively, in hotels. Indeed, the biggest and most elaborate gaming parlour is right in the middle of "the strip" on a location in the prime beach area of Montego Bay with bright lights and spectacular decor for all to see.
DIFFERENCE
The only difference between these gaming parlours in hotels and full casinos is that the latter carry a small number of gaming tables for special games like roulette, black jack and crap, etc. In a 80,000 square feet casino parlour some 20 tables would be on the floor. More than 90 per cent of the games are slot machines. To convert existing gaming rooms in hotels or public parlours to casinos, all that is required is a small number of gaming tables.
The element of gaming is no different for slot machines and gaming tables. They are the same. Indeed, casino gaming is no different from the lottery or horseracing. They are all games of chance and the latter two are fully recognised legally in local practice.
So what is the problem? The real issue, which surfaces in the polls, is the disconnection between the propaganda fed to the people and the reality.
There was a time when casino gaming, particularly in Las Vegas, was under control of gangsters in the United States. Those days are gone. They are a fiction of the past, surfacing only in Hollywood movies and old ones at that. Casino gaming today is one of the most highly regulated industries in the world, subject to very restrictive laws and effective penalties.
In cities with major involvement, casino operations are not only supervised in local jurisdictions, but are part of a network of international linkages, which cover the world. Problems arising in any area: breaches of regulations, infiltration by undesirable personnel, fraud, and other illegal activity is caught up in the web of the international exchange of intelligence, which alerts all gaming commissions everywhere.
A one-time head of the Las Vegas Gaming Commission was a friend of mine in another capacity in which he served as chairman of one of the high ranking bodies of the Republican Party during the presidency of Ronald Reagan. On visits where we met at conferences held by the International Democrat Union, the worldwide organisation of Christian Democratic parties, of which we were both vice-presidents, I exchanged information with him on the level of controls in the industry. I was enlightened by the intensive regulations and extensive coverage of casinos. This is essential to deal with persons who will try to infiltrate the industry, especially if they spot an opening with a new entrant who is uninformed, particularly a new government.
The strict regulations in the U.S. have been a model for operations in many other jurisdictions, such as Australia. Europeans have long had casinos ranging from large parlours to small, discrete gentlemen's black tie gaming parlour for high stakes. There have been no fears exercised here about criminal activities.
SLOT MACHINES
In short, it is entirely possible to operate a casino parlour with slot machines and gaming tables. Slot machines are already in operation on a large scale. All that is needed are a handful of gaming tables.
Large-scale casino operations exist in many operations in the U.S. New mega casinos now operate on many Indian reservations across America. Casinos operate throughout many Caribbean islands, including the Bahamas, where they have had a long record of success.
Indian reservations, which have gone this route have turned desperately poor Indians into multi-millionaire tribes. However, one of the great success stories is Gulf Port in Mississippi, part of the Biloxi casino spread, which is second only to Las Vegas. Casino gaming was a principal part of the turnaround of a derelict port into a modern multi-functional development very much like the Kingston Waterfront and the proposed Fort Augusta development. It includes hotels, manufacturing, industry, services, beaches and a full-scale resort with large hotels of the 1,000-room variety. Better yet, the proceeds of the casinos are devoted to educational reforms and the results have been remarkable: the worst school system in Mississippi in the U.S., comprised entirely of black students, experienced a boost which has made it into a stellar attraction.
Casino operations in Jamaica can be done the right way or the wrong way.
The main considerations are:
The industry does not thrive on small-scale scattered parlours, whether in hotels or not. Large-scale hotel developments with a central casino palace or two and a base of 3,000 to 4,000 guest rooms, are essential. The proposed Harmony Cove development comes to mind. Cruise ships are not necessarily a source of gaming guests. Casinos now exist on every cruise ship. The casino is not only a gaming operation. To be successful it must offer attractive, spectacular, high quality shows as is done not only in big operations in America but in the Bahamas. The portion of revenue coming to government is highly regulated and can be negotiated on a per table, per machine basis, or a percentage of the revenue, part off the top (revenue) and part off the bottom (profit). A really successful casino should have a conference centre seating 3,000-5,000 persons who are potential patrons and a gaming parlour of about 80,000 sq. ft.One drawback is the tendency to offer very low rates for hotel rooms to pull patrons. This could be adverse to existing hotels, and would need special arrangements and agreements.
In Jamaica, what Ed Bartlett calls the Elegant Corridor where the Ritz-Carlton and Rose Hall are located, is ideal. Other hotels would come on stream here. The proposed Harmony Cove development under the charge of Kingsley Thomas would be ideal. Ocho Rios could still salvage a casino palace on a reasonable scale in the Turtle Beach complex, if it does not continue its downscale drift. Navy Island is an excellent location for a small 'gentleman's' casino. The Kingston Waterfront could be opened up with a major casino in a Fort Augusta development, as I have proposed. It could be linked to cruise ships with a stop-over arrangement tied in with Port Royal. In short, the possibilities are many. They are clear and full of development potential with revenue and jobs for thousands.
FINANCING EARLY CHILDHOOD EDUCATION
If Jamaica went the route of licensing casinos and assigning proceeds to education, this should be linked exclusively to financing early childhood education. The revenue from casinos would make the difference in dealing with the education crisis from the bottom up. It would not be sufficient by any means to tackle the entire programme of education reforms, as some believe, but would definitely solve the crisis at the early childhood level. I should hardly need to repeat that the crisis in education begins at the early childhood level, and if it is not solved there, the education system will continue to be doomed to a future of failure.
PRESENTING A CONVINCING CASE
Notwithstanding the vote in the public opinion poll against casino gaming, I believe a convincing case can be presented based on what more is known now. If I had the benefit in the 1980s of all that I now know, I would not have retreated in the face of a slightly negative majority against casinos in a poll. I would have revised my approach by seeking a reasonable consensus with the objectors, using upfront arguments on the gains to be derived and the unrealistic fears to be discarded, in order to overcome much of the dissent. If I had been in a more informed position then, the outcome could have changed and the future could have been different.
But there is a time and place for everything. The time was not then! It may be now, if the right approach is used!
Edward Seaga is a former Prime Minister. He is now a Distinguished Fellow at the University of the West Indies, Mona.
