Uncovering the Maze of Casino Regulations in Belize Amidst Caribi Bleu Controversy

Over the past few weeks, News Five has uncovered several troubling issues surrounding Caribi Bleu Casino in San Pedro, including its owner’s alleged connection to an illegal gaming spot in Lady Lake, Florida, and the discovery of an unauthorised ATM that dispenses U.S. currency on the casino premises. However, to understand the full context of these developments, it’s essential to explore how casinos operate in Belize, the regulatory frameworks in place, and the multiple authorities overseeing the industry.

While the exact value of Belize’s casino market remains undisclosed, the local industry is undoubtedly significant, bolstered by the influx of half a million tourists in 2023. According to a recent study, the global casino market was valued at $163 billion in 2023, with Latin America contributing an estimated $8.7 billion. This suggests that Belize’s casino industry could be poised for substantial growth, attracting significant investments.

The Road to Opening a Casino in Belize

Belize’s casino industry is governed by a complex regulatory framework, originating from the first recorded legislation, the Gaming Control Act, introduced in 1999. During the National Assembly debate on the bill, then Prime Minister Said Musa noted that the legislation would establish a system for licensing and regulating casinos, allowing the government to impose taxes on gaming revenues. Since then, the Gaming Control Act has undergone multiple amendments, evolving into a comprehensive sixty-one-page document.

To open a casino in Belize, an operator must apply to the Gaming Control Board. Applicants must meet several stringent requirements, including significant investment in a four- or five-star hotel or resort. They must also submit a detailed business plan, provide clearance from the Belize Tourism Board, offer a set of fingerprints for background checks, and secure approval from local authorities such as the area representative, mayor, and the police.

According to Bob Bounahra, Chairman of the Gaming Control Board, “If all the checks are not crossed, you are not getting a license.” He further explained that the clearance from the Belize Tourism Board is crucial to ensure casinos contribute positively to the country’s tourism industry. Additionally, obtaining a no-objection letter from local officials is critical, as the Gaming Control Board relies on their knowledge of local conditions to make informed decisions about casino licensing.

The Role of the Gaming Control Board

The Gaming Control Board, a nine-member body composed of representatives from various government ministries, is tasked with regulating the casino industry, granting and revoking licenses, and ensuring compliance with gaming laws. Bounahra noted that the board conducts compliance checks about two or three times a year, though the Gaming Control Act does not specify the frequency of these visits. The Ministry of Investment’s compliance unit is responsible for performing these on-site checks.

Despite the board’s oversight, one pressing concern in the casino industry is the risk of money laundering. According to a 2009 study by the Financial Action Task Force, casinos are a high-risk sector for money laundering activities. As a result, Belize’s Money Laundering and Terrorism (Prevention) Act includes casinos in its scope, with the Financial Intelligence Unit (FIU) overseeing compliance with anti-money laundering laws.

In addition to the FIU, the Gaming Control Board conducts its own compliance assessments, receiving monthly financial reports from casinos. While Bounahra stated that the board does not directly monitor financial transactions, he emphasised the importance of progress in anti-money laundering efforts, noting, “We were at zero before taking over this last board in 2021, and now we’re almost there.”

The Unauthorised ATM at Caribi Bleu Casino

Amidst these regulations, one question continues to loom: How did Caribi Bleu Casino manage to operate an unauthorised ATM that dispenses U.S. dollars on its premises? According to the Exchange Control Regulations Act, establishments that deal in foreign currency must receive authorisation from the Central Bank of Belize. Additionally, the Payment Systems Act requires a license for operating ATMs, which must be clearly displayed within the establishment.

News Five’s investigation revealed that Caribi Bleu Casino’s ATM was dispensing U.S. currency, but the casino does not have the necessary authorisation from the Central Bank of Belize. Bounahra, when asked about the ATM, stated that the Gaming Control Board does not have authority over such matters, as the Central Bank is responsible for regulating payment systems and foreign currency dealings.

As we continue our investigation into Caribi Bleu Casino, many questions remain unanswered. Did the Central Bank of Belize authorise the casino to operate the ATM and deal in U.S. currency? Has the casino been subject to proper regulatory oversight, and are authorities aware of any potential money laundering risks associated with its operations?

News Five is committed to uncovering the truth and will continue to seek answers from the relevant authorities.

Reporting by Paul Lopez, News Five