The Cayman Islands had been known for being a very tax-friendly jurisdiction (a tax haven, some would say), which is the reason why many businessmen, celebrities, and even politicians are accused of hiding their money in this Caribbean nation.

Apparently, there’s no income, capital gains, property, or corporate taxes that are being collected in the Cayman Islands, thereby making them tax neutral. They only get the majority of their income from indirect taxes.

However, despite this leniency in their taxation, why does the Cayman Islands still have a negative view on gambling that until now it’s still illegal? 

The Gambling Laws

It’s really surprising how despite being a tax haven for the rich and famous, the laws of this island still prohibit gambling. Perhaps all the residents of the Cayman Islands are aware already that all forms of gambling are illegal here and that they may face serious legal battles.

Well, this prohibition can be traced back to the Gambling Act of 1963. The said gambling act (which was revised in 2016) is the main piece of legislation where it states that any form of wagering is prohibited, and law violators can face up to 2 months of imprisonment or can be fined only $10, though it may depend on the severity, frequency, and scope and nonoccurrence. But for most people, except for criminals, they’ll usually get a fine of just around $10 (including the tourists). 

You may wonder why the punishment is too low, it’s because of their outdated regulations. Though there are reports that prosecuted gamblers receive additional made-up charges to increase the low maximum fine. This only points out the need for the island nation to revise and update the outdated gambling law.

Moreover, since all forms of gambling (aside from non-profit raffles) are illegal, online gambling is technically illegal as well. However, the authorities may not have strong teeth against online wagering where illegal operators are the only ones targeted and are not enforced to the level of the players. With that, citizens who gamble online are most likely to escape fines or prosecution. But as it is illegal, you may not want to take the risk and challenge that government. 

Despite this, some online poker rooms and casinos accept players from this country. While these online casinos may not be licensed in the Cayman Islands, they may be registered from other countries within the Caribbean islands. The argument behind this is that they are technically allowed to accept players from other countries, hence they aren’t doing something illegal.

Why is gambling viewed negatively?

There could be many factors to consider as to why the Cayman Islands have such a negative view on gambling.

One key factor may be religion, which is predominantly Christian. Although Christianity doesn’t explicitly prohibit gambling, it has become a subject of morality and ethical discourse. Moreover, since religion is an important aspect of the Cayman Islands culture, the majority of the local businesses, including harbors and ports, are closed during Sundays. 

Another reason that can also be considered why gambling is still taboo in the Cayman Islands is their outdated law. The island nation clearly hasn’t made major changes to its gambling law which is many years behind already. Although an amendment was made in 2015, it only allowed gambling on cruise ships registered on their land, as long as it’s practiced outside of their territories. The amendment also allowed charitable bingo events and raffles from non-profit organizations.

Since the islands have a thriving tourism industry, legislators may not see the need for gambling tourism as people visit their islands for more reasons than that.

The future of gambling in the Cayman Islands

Given the state of the gambling industry in the Cayman Islands, you might wonder if there are any possibilities that gambling will be legalized.

In recent years, the government tried to pass a new gambling law aiming to increase the penalties for the law violators. With the proposed law, it will no longer just come after illegal gambling operators (especially in online gambling) but also on players. It also seeks to increase the fine up to $2,500 and 6 months.

The reason behind the new law is the reports linked to an increase in crimes related to gambling activities between 2015 to 2018.

However, the proposal was put to hold to give time for the government to review the provisions. That gave hope to the investors who wanted to put up casinos in the islands that the law would take a curb and allow gambling to operate in the heart of the Caribbean – the Cayman Islands.

Every country that hasn’t allowed any forms of gambling to operate on their lands has its reasons for doing so. Most of the time, it’s because of morality and ethical reasons, religion, and their goal to protect the welfare of their citizens from any harmful vices or addiction. That may also be true with the Cayman Islands. 

But those who have seen the potential of the gambling industry in the islands are still hopeful that doors will not be closed for them and that one day, they’ll be allowed to operate.