Banning The Slots

If you’ve ever dreamed about hitting the jackpot on one of the slot machines in Bermuda’s bars, time is running out. Following the failure of a last-minute legal challenge, from midnight tonight all gaming machines will be outlawed in a move that Premier Alex Scott has described as necessary to protect the most vulnerable members of society. Stiff penalties have been announced for those who break the new law and the Government has even gone out of its way to prevent entrepreneurs establishing a gaming ship to allow punters to play the machines while outside Bermuda’s territorial waters.

The Royal Gazette stated recently that it believes the costs of gambling outweigh the benefits. But do we really know what those costs are? Just how much of a problem is gambling addiction in Bermuda? How many people are affected? What is the impact on society? And is the problem really limited to gaming machines, as the Government’s current position implies? Without any figures to back up the Government’s assessment of the problem, how do we know its solution is the right one? And why have a national debate on gambling after the ban comes into effect?

The ban is so specific that it’s hard to believe it’s going to achieve much. Bermudians will still be able to gamble on horse racing, the football pools, in the bingo halls and on internet gaming sites. And the Government certainly isn’t proposing to restrict our ability to lose thousands of dollars on the Crown and Anchor tables every year at Cup Match. According to the Premier, that’s because these are “traditional Bermuda pastimes”. So I guess if you’re driven into debt and marital breakdown through an addiction to one of these, that’s just too bad. And don’t mention those who drink or smoke themselves into penury. Such inconsistency makes the Government’s action seems less like an initiative to protect the poor and more like a sop to the PLP’s church lobby.

But I find it hard to summon up much sympathy for the owners of the machines either. The Prohibition of Gaming Machines act was passed in 2001; as the Premier has pointed out, the owners have had plenty of time to research and develop alternative sources of revenue since then.

Still, in a free society everyone should be free to make their own mistakes unless their behaviour causes significant damage to that society. In the absence of evidence to the contrary I don’t believe gaming machines constitute such a problem.

I was initially a little taken aback by the suggestion from Rick Olson – owner of The Beach, a bar on Front Street – that taxing the machines would raise the revenue needed to pay for the social costs of addiction. The implication that addiction is merely a financial issue seemed rather callous. But the idea that Government should tax gaming machines isn't new - even the Attorney General has suggested it. And in the UK the Government levies high taxes on cigarettes to both help persuade people to kick the habit and pay for the cost of treating the smoking-related conditions those people develop in later life. A similar approach to gaming machines, and gambling in general, would be a better approach than an outright ban.

Comments

[David on 30.06.04 at 19:42]

UK government taxing fags as a favour for smokers?? Oh poor things they want to stop so we'll give them a hand? Tosh boy. My experience, low income workers smoke and still do despite the cost meaning less food for their kiddies. Its a habit that can't be overcome purely on cost. Fags are taxed cos the government can make shit loads of cash from it. As for paying for smoke related diseases, yes but and (a lot) some.

[J Galt on 30.06.04 at 21:50]

I wonder if we can show a relationship between the1993 and 1996 opening of the Foxwoods Casino and Mohegan Sun, to the decline in tourism on the island. Many of the visitors to these casinos come from the tri-state area. Foxwoods is a two and a half hour drive from New York City. We are a two hour flight; with a world class casino we might be able to draw a portion of their patrons.

Each of these casino’s gives the state 25 percent of its monthly slot machine earnings combined they handed over $25,000,000 for November, $30,000,000 for December. Since Foxwoods began operating slots, it has paid the state $1,184,365,583. Mohegan Sun has paid $451,414,691.

What is wrong with that?

[Stevie C on 01.07.04 at 06:05]

J Galt has a good point that a world class casino would indeed draw people to the island and lots of revenue for the government (if they bother to collect it!).

But then, opening topless dancing clubs would also bring money - we could tax them heavily too. Why stop there? What about legallising maujuana and taxing distributors... heck, cut out the middle man and set up Government run pot-shops...

... not a pretty picture for a peaceful island retreat, which is what Bermuda's tourism should be about. If you want a casino and the associated vices, go to Vegas - leave Bermuda as it is.

[J Galt on 01.07.04 at 07:38]

Stevie,

Your argument is designed to get an emotional response, please try to use logic. A world class casino doesn’t automatically equal strippers, or legalized drugs.

Government claims to be doing the right thing by protecting Bermuda’s vulnerable, ask yourself at what cost. They don’t close bars because some are unable to resist alcohol. Government should be putting the able, those that can ahead of those that can’t.

Government's pledge of no one left behind really means no one gets ahead.

[The Limey on 01.07.04 at 07:59]

Stephen

I actually think legalising and taxing marijuana is a pretty sensible idea. It's arguably far less damaging to health that alcohol or cigarattes and would probably make Bermuda more of a "peaceful island retreat", not less. But that's a discussion for another day.

I'm in favour of a few topless dancing clubs too. As someone unfortunate enough to have my stag do in Bermuda, I have to say that the absence of naked women really meant it wasn't much of a stag do at all.

[Tiger Bay on 01.07.04 at 09:45]

I don't think Bermuda had much choice but to ban the machines, as we are ill equipped to properly regulate them. This being so, the odds can easily be manipulated by the owners to the detriment of punters.

The best practices for regulation of gaming machines are set by Nevada. Look at what the Nevada Gaming Control Board (NGCB) does:

NGCB maintains archives of software and disallows the use of uncertified software.

NGCB spot checks gambling machines to make sure they use only authorized software.

The NGCB conducts background checks of gaming machine companies and their employees. The NGCB labs that inspect gaming software are open to public scrutiny and independent of gaming companies.

Gamblers have a right to an immediate investigation if they think a machine has cheated them.

Do think that Bermuda is up to this degree of oversight for an industry that benefits a handful of gaming machine owners?

[neutral on 01.07.04 at 11:31]

i do not know whether or not the gambling machines should be banned - my opinion does not really matter. i wonder, however, how a government can ban gambling machines, casinos, and other forms of gambling, yet allow people to gamble for 2 days a year at cupmatch? I know that crown and anchor is a bermudian tradition, but then again so is smoking weed for a large population on the island. it seems to me that this would be the equivilent of banning drugs 363 days a year, allowing their use only on a traditional public holiday.

i am neither an advocate of gambling or drug use, nor am i opposed to them. i only wonder why the government is allowed to make lagislation at their will without taking into consideration any real-world perspectives. they seem to be in their own dreamland.

[Somers on 01.07.04 at 12:57]

Galt,
I think Stevie-C's response is totally right; sowhat if it was "designed to get an emotional response" Hell, how do you think the PLP got re-elected???

[Xando on 01.07.04 at 14:40]

Bye, who're you calling a slot? Evryone's gotta make a livin! Chingas!!

[J Galt on 01.07.04 at 19:04]

Somers,

Please help me to understand, how a world class casino will automatically lead to strip clubs and legalized marijuana. What does on have to do with the other?

An emotion tells you nothing about reality, beyond the fact that something makes you feel something

[Tiger Bay on 14.07.04 at 08:38]

The following article confirms the obvious: that the odds are easily manipulated on gaming machines and there are hidden tricks in their code. Good riddance to them!

"Zeus Yaghi, computer programmer and gaming expert, says that a number of computerized gaming machines have 'easter eggs', or code inserted by a rogue programmer, that allow some gamblers a guaranteed win if they know how to use it. He reports one woman who put her children through college and purchased a Mercedes 500 with money stolen by exploiting easter eggs in gaming machines. Mr. Yaghi's claims have sparked a $10 million libel suit against him from one gaming machine company, while others have addressed flaws he has pointed out. Gaming companies, however, argue that the flaws result from human error rather than malicious programmers. Gaming companies and regulators say tests discover most programming anomalies. However, one former gaming machine producer, Bob Haase, says he had his programmers write features similar to easter eggs for use by casino owners."

http://www.canada.com/national/nationalpost/news/story.html?id=a42827a1-3f66-4512-805e-10b308498393