April 23, 2008 -- Prime Minister, Bruce Golding, has
said the Government has taken the decision to permit the licensing of
casinos in Jamaica and has already approved proposals for a major new
investment predicated on the granting of a casino licence.
The Prime Minister, who was making
his contribution to the 2008/09 Budget Debate in the House of
Representatives April 22, said the decision was based on a
review of the issues surrounding casino gambling.
Mr. Golding explained that
applications for casino licences, however, will only be considered if
certain conditions are met. These are: a minimum investment of US$1.5
billion and the construction of not less than 1,000 rooms; the casino
component should be no more than 20 per cent of the total project;
operators of the casino will be subject to the approval of the
Government after appropriate due diligence including fit and proper
tests and evaluation of track record; and an appropriate regulatory
framework with the necessary legislation and enforcement mechanism put
in place.
He informed that "a team chaired
by the Hon. Dennis Lalor has been established to recommend to the
Government, the appropriate regulatory framework and tax regime to
govern the operation of casinos. These will inform the legislation,
which will be brought to Parliament for consideration and approval."
In the meantime, Mr. Golding has
informed that the Government has approved proposals from the developers
of the Palmyra Resort and Spa, operating under a company known as
Celebration Jamaica Limited, for a major new investment predicated on
the granting of a casino licence.
This investment involves the
development of a 65-acre property adjoining the existing Palmyra Resort
at Rose Hall and consisting of 2,080 new hotel rooms. The project will
involve a total investment of US$1.8 billion.
Mr. Golding however said that in
order for this proposal to be committed to agreement, "we had to
re-negotiate the terms of the agreement with the Tavistock Group in
respect of Harmony Cove."
"This was so because under the
agreement entered into with the previous administration, Harmony Cove
would have enjoyed an exclusive licence to operate gaming machines
within a 10-mile radius of any border of Trelawny. This exclusive zone
encompasses Rose Hall," Mr. Golding said.
"I am in a position to advise that
based on our undertaking that it will also be allowed to operate a
casino. Tavistock has agreed to restrict its exclusivity to allow for
an agreement to be signed with Celebration Jamaica and by an exchange
of letters the Heads of Agreement have been amended accordingly," he
added.
The Prime Minister also said that
Tavistock has agreed to increase the size of the project from 4,500
rooms to 8,500 rooms with an additional investment of between
US$1billion and US$2 billion.
"These will be configured in a
cluster of 9 hotels with a stupendous array of facilities and
amenities. Accordingly, the Government has signed a Heads of Agreement
with Celebration Jamaica Limited for the new development at Rose Hall,"
Mr. Golding said.
Meanwhile, the Prime Minister has
stressed that "we will ensure that best practices are observed and that
only reputable companies with proven integrity are allowed to operate
in Jamaica."
"It is our intention to dedicate
the revenues from casino operations to a special fund to finance
capital development in health, education and security,"
Mr. Golding said.
