Puerto Rico has seen 3 of its 6 top rated casinos close in San Juan. There the casino tax rate, which I understand escalates as win increases, is probably the major problem; along with the thousands of illegal machines operating outside the casino resorts.

In my analysis of gaming in the Bahamas, where I was involved for many years; I felt a casino needed 2,000 nearby rooms to be successful. When we opened the Paradise Island Casino, we had 650 rooms on the Island, and across the PI Bridge, were several thousand rooms in Nassau, without any casinos. And at that time there were no legal casinos in North America, outside the State of Nevada; so our casino was a meaningful attraction. Our first year's casino win, however, was only $9 million. And in those days, few Cruise Ships had casinos, and the passengers would come in groups to see our review type shows and enjoy the slots.

Today on the Strip in Las Vegas, there are 47 resort hotels with casinos; averaging 1,910 rooms each, and winning (after comps and free play) $146 per occupied room night. They also enjoyed an occupancy of 90.2 percent at an average room rate of $151.

Yet 72 percent of the departmental profits come from rooms (40 percent), the convention department (20 percent), food and beverage (12 percent) and the casino only 28 percent.

Bermuda's primary visitor now comes from the Eastern US and Canada, that all have casino gaming nearby. Therefore your visitors, may prefer a resort that offers gaming; but that will no longer the primary reason for the trip. Your visitor will be coming for an Island vacation; to enjoy the beach, sun and sand, and the wonderful experience that your Country provides. So the addition of casino gaming, is primarily providing evening entertainment, and putting you on equal footing with competitive Island destinations, that already provide casino and various types of musical shows and entertainment.

Without junket type programs, I would expect the best a 500-room casino hotel could win is in the neighborhood of $7 to $14 million, from their own guests; plus persons staying at nearby resorts. That is based on a 70 percent occupancy, winning from $75 to $150 per occupied room night.

For Bermuda, the actual win tax rate is much more critical to potential developers and operators than a one-time fee.