How to Open a Casino in Belize, Investigating Gaming Operations

Over the past few weeks, News Five has been digging into the operations at Caribi Bleu Casino in San Pedro. So far, we’ve discovered that the casino’s owner has connections to an alleged illegal gaming spot in Lady Lake, Florida. We’ve also found an unauthorized ATM inside Caribi Bleu Casino on the island town that dispenses U.S. currency. But before we dive deeper into our investigation, it’s crucial to understand how casinos are set up in Belize and why there’s a maze of legislation and multiple authorities overseeing the industry. News Five’s Paul Lopez has the story.

 

Paul Lopez, Reporting

A recent study reveals that the global casino market was worth a staggering one hundred and sixty-three billion dollars in 2023, with Latin America’s share estimated at eight point seven billion dollars. While the exact value of Belize’s casino market remains undisclosed, the influx of half a million tourists in 2023 suggests that the local casino industry is poised to deliver significant returns for investors.

 

The first recorded legislation to regulate casinos in Belize dates back to April thirtieth, 1999, during a National Assembly debate led by then Prime Minister Said Musa. During the discussion on the proposed Gaming Control Bill, he remarked, quote, It would provide a system for the licensing and control of this business and allow for the imposition of a very serious tax on gaming. Under the law any operator of such machines must first obtain a license, otherwise the establishment will be closed down.” unquote

 

Since then, the Gaming Control Act has undergone numerous amendments, evolving into the comprehensive sixty-one-page document it is today. A quick Google search for casinos in Belize now yields eight results. These establishments cater to thrill-seekers and gambling enthusiasts, offering a variety of traditional casino games like slot machines, blackjack, baccarat, and more.

 

How to Open a Casino in Belize

Entering the Belize casino market involves several key steps. First, anyone looking to open a casino must apply to the Gaming Control Board. Since Belizean casinos mainly target tourists, applicants need to be ready to invest significantly in a four- or five-star hotel or resort. This is one of the primary conditions for getting started. To show just how serious they are about vetting applicants and their proposed operations, the Gaming Control Board requires a detailed business plan. Along with this, potential casino owners must provide proof of clearance from the Belize Tourism Board, a full set of fingerprints, and meet twenty other requirements. Additionally, they need approval from the area representative or mayor and the police.

 

Paul Lopez

“Do you know an individual by the name of Remington Ray, the owner of Caribi Bleu Casino?”

 

Andre Perez, Area Representative, Belize Rural South

“No, I don’t.”

 

Chairman of the Gaming Control Board, Bob Bounahra, emphasized to News Five, ‘If all the checks are not crossed, you are not getting a license.’ He explained that the clearance from the Belize Tourism Board is crucial to boost tourism investment in Belize, stating, ‘Casinos are not our main goal. The casino is to assist the tourism industry.’ When asked about the importance of getting a no-objection letter from the area representative or municipal authority, Nahra said, ‘If you want to put a casino across from a church or in the middle of the ocean, I sit in an office in Belize City and have no idea what happens in San Pedro. I need their help. They run their town or city. They know what is best for them, so we can make the correct decision.’ The no-objection letter must be submitted to the board as a hardcopy.

 

The Gaming Control Board

Gaming in Belize is a booming industry, overseen by a nine-member Gaming Control Board, primarily made up of representatives from various government ministries. This board has the authority to regulate casino operations, grant and revoke licenses, and ensure that casinos remain free of criminal activities. When we asked Chairman Bounahra about the frequency of compliance checks in Belizean casinos, he explained, ‘We do it about two or three times a year. This is because licenses are issued annually, so we assess everything at the end of the year and review each individual case.’ Interestingly, the Gaming Control Act doesn’t specify how often these checks should occur. According to Bounahra, the compliance unit within the Ministry of Investment handles these visits. He added, ‘If the board were to decide when the department needs to make visits, we’d be wasting our time. It’s the department that conducts the visits. We ask for checks and compliance.’ He clarified that the Board doesn’t give specific directives on what to check during these visits.

 

Money Laundering in Casinos

One issue that has kept regulatory bodies on high alert in the casino sector for decades is money laundering. A 2009 study by the Financial Action Task Force identified casinos as the highest risk for money laundering activities. This is why Belize’s Money Laundering and Terrorism (Prevention) Act explicitly covers casinos. The Financial Intelligence Unit (FIU) is designated as the supervisory authority for casinos in Belize, tasked with ensuring they comply with anti-money laundering obligations through on-site examinations and other methods.

 

In addition to the FIU’s role, the Gaming Control Board also conducts compliance visits to assess casinos’ adherence to anti-money laundering laws. When asked about the board’s involvement in monitoring financial transactions, Bounahra explained, ‘The board only looks at what the department is monitoring. We don’t deal directly with individuals or companies.’ He also mentioned that the board receives monthly financial reports from casino establishments.

 

Regarding the capacity of compliance officers to detect suspicious financial transactions, Bounahra said, ‘We were at zero before taking over this last board in 2021, and now we’re almost there. It took a lot of work, but we’ve made significant progress. There’s no such thing as 100%, but we’re almost where we want to be. Despite all these compliance measures, one burning question remains: how did Caribi Bleu Casino manage to operate an unauthorized ATM dispensing U.S. currency right inside its premises. Bounahra categorically stated that he cannot speak about this, because the Gaming Control Board does not have authority over these matters. He confined his comments only to gaming. The Central Bank of Belize is the body empowered to issue authorization for the operation of payment systems such as automated teller machines as well as authorization to deal in foreign currency. So, did they give Caribi Bleu Casino permission to do both? We continue to seek answers from the Central Bank of Belize.  Reporting for News Five, I am Paul Lopez.