Government of Jamaica
Source: Loop News
On Wednesday Jamaica took a step closer towards the introduction of casino gaming locally as part of the country’s tourism offering, with the opening of applications for the award of Integrated Resort Development (IRD) orders.
Finance and the Public Service Minister, Dr Nigel Clarke, made the announcement in a statement in the House of Representatives on Tuesday.
Clarke also announced the appointment of a 10-member enterprise team chaired by Dr Dana Dixon, to receive and evaluate the applications from interested investors.
Under the Casino Gaming Act which was first passed more than a decade ago, the finance minister is authorised to make an order declaring an IRD to be a development. This will allow a developer to make an application to the Casino Gaming Commission for a licence to be issued under the Act to operate a casino within the resort development.
IRDs must include at least 1,000 rooms. This is a 50 per cent reduction from the requirement in the original Act, which was recently amended with a view to luring investors. At least 500 of the rooms must be high-end accommodations.
Clarke outlined that all elements of the approved IRD are to be constructed and made operational within three years of the commencement of the operation of any casino activity on the development. There is a penalty for failure to comply.
The minister said there is presently no casino resort in Jamaica, despite the legislation to accommodate their investment being in effect since 2010.
“It is our intention, with the lack of this product in Jamaica, to eventually have a casino gaming resort, and, also, it is our intention to attract hundreds of millions, if not billions, of investments via this means,” said Clarke.
During his contribution to the debate to amend the Casino Gaming Act in July, Government Senator Don Wehby disclosed that four potential investors had already lined up to enter the casino gaming market in Jamaica.
Wehby, who is also Chairman of Jamaica Promotions Corporation (JAMPRO), described the four as “strong candidates”. He said two of the four are brand-new investors to Jamaica, with the other two looking to expand their business operations on the island. He described them as world-renowned brands.
Wehby noted that one of the main issues with the previous legislation was that it inhibited investment, as the requirements were too onerous, compared to current global trends in casino development.
“The expectation is that the amendments will stimulate the growth of the Integrated Resorts Development sector and the wider economy through large-scale foreign direct investment generated from these developments. These amendments are timely and welcome as the Government works to build back stronger so Jamaica can recover better after COVID-19,” said Wehby.
He added that the amendments would make Jamaica more investor friendly.
Wehby stated that one of the most significant amendments is the reduction of the room capacity from the required 2,000 rooms to 1,000 rooms, 500 of which will be luxury rooms that will attract higher rates, which means higher revenues for the Government. He said investments in the pipeline were waiting on the amendments.
