Considering their location in the heart of the Caribbean and the major contribution that tourism makes to the local economy there is one thing that is conspicuously lacking in the Cayman Islands – gambling.

Unlike places like the Bahamas and the islands of the West Indies where most of the major resorts have at least one casino, the Islands lag a long way behind when it comes to offering this particular form of entertainment. And it’s not simply tourists who may be missing out. There’s a population of over 68,000, many of whom come from countries where gambling is permitted, who may also be keen to embrace it if it were to be legalised.

The law as it stands

The Cayman Islands has always had a firm stance on gambling, ever since the 1963 Gambling Act first came into force. This expressly forbade all forms of gambling, although the penalties for breaking the law have always been relatively minor at two months’ imprisonment or a $10 fine.

It is worth noting, however, that in the past people found guilty of breaking the law have received stiffer penalties than these as other infractions have been included in their crimes.

In 2015 there was a sign that the Islands’ government might be starting to soften their approach when raffles were finally permitted, something that had probably been going on “under the radar” long before they were permitted.

However, since then there has been no further indication that any other forms of gambling might become legal, despite the many benefits that this might bring to both the adult population and the economy as a whole.

Looking to the UK as an example

Some have questioned whether, as a self-governing British Overseas Territory, the Cayman Islands might not look to the UK to see how gambling is legislated and regulated there. While it’s a country that has always had a relatively liberal approach to the activity, the last 15 years or so have seen it lead the way on a global scale.

It all began in 2005 when the then Labour Government under Prime Minister Tony Blair decided to liberalise gambling with the overall aim of giving a boost to the economy. Aware that this would also mean greater regulation was required, a new body called The Gambling Commission was set up to oversee the industry.

There were also plans to build so-called “super casinos” in areas that needed economic regeneration, although several factors including the global financial crisis of 2008-9 meant these plans never came to fruition.

But, despite this, the gambling industry has boomed in the UK generating over £14 billion in revenue each year. The largest single sector within this is online or remote gambling at £5.7 billion a year and rising.

Through careful regulation, it’s also an industry in which a number of major operators have emerged, and millions of players use their sites to play everything from roulette to blackjack and slots to bingo.

The other big growth area has been in sports betting. This has become an essential part of the enjoyment for many sports fans who feel that it adds an extra level of excitement to a game, or season, when they’re following their favourite teams.

Following America’s lead?

One country that has seen a loosening up of its laws surrounding gambling in recent times is the US. In May 2018, the US Supreme Court passed a historic judgment allowing individual states to set their own laws concerning sports betting. To date, 18 states have now legalised the practice with many more either seriously considering it or in the process of making it legal.

On the back of this, a number of states have also decided to allow online casinos to operate, like the state of Pennsylvania, for example, with 11 options already up and running. All offer players a wide range of games, playable from the comfort of their own homes, or wherever there is an internet connection.

The so-called Keystone State is already seeing many benefits of this move, the most notable of which has been the $1.5 billion in tax revenue that it has raised to date.

The benefits for the Cayman Islands

It’s this tax revenue, in particular, that would be one of the key advantages for the Islands if they were to allow betting, both in its online and bricks and mortar casino forms. This could be especially beneficial as the current tax regime includes no direct taxation, simply duty charged on imports. And, while this makes the territory a very attractive place for people to work and businesses to operate, greater tax revenue being received would obviously be advantageous.

Casinos would also bring the Islands on more of a parity with other resorts in the region. At present even the visiting cruise ships are not allowed to open their casinos when in Cayman Island waters, which many tourists find extreme.

Last, but not least, there’s the small matter of employment that it could bring. While the unemployment rate is admittedly low and the general standard of living the highest in the Caribbean, any extra boost would be welcome.

So, there are plenty of arguments in favour of abolishing a law that many find out of date and too restrictive. But whether the Governor and the administration will bend to the will of many remains to be seen.