Page 19: of Maritime Reporter Magazine (October 1994)

Wdterborne Gaming In The U.S.:

What Lies Ahead?

The blending of the marine and gaming industries has come a long way since April 1991 when there were no gaming boats licensed in state waters and cruise- to-nowhere trades were the sole domain of flag- of-convenience ships sailing in and out of a cabotage loophole.

While some impediments remain, supports of

U.S. marine industries have seen steady progress on the federal level in addressing obstacles which inhibited the emergence of a U.S. fleet offering gaming in offshore trades.

Gaming on vessels licensed in various states has evolved rapidly and sometimes taken a hy- brid forms such as the non-propelled "gambling barge" phenomenon, limited cruising and fully equipped/maintained, U.S. Coast Guard (USCG)- certified vessels operating dockside without cruis- ing. Unexpected legal complication in several states has slowed the rapid expansion of gaming activity and sent ripples through gaming stocks. by

Larry Evans

Transportation Institute

What has happened and what lies ahead are increasingly not only questions of legislative content, but also the state of the economy and changing public perceptions of this growing in- dustry. The horizon is not as clear as it was only a year ago, and the reasons need to be discussed and better understood by marine interests.

Positive Developments In Federal Policy

It has been less than three years since it again became legal to transport gaming devices on

U.S.-flag ships and less than three months since many of the unwarranted gaming revenue re- strictions on existing or potential U.S.-flag op- erators have been eliminated.

For more than 40 years, two laws, the Gam- bling Ship Act (GSA) and the Gambling Devices (Johnston) Act (GDA), governed and essentially forbade casinos on U.S.-flag passenger ships.

The GDA essentially disallowed the possession or use of mechanical gaming devices (slots, rou- lette, etc.) on U.S.-flag ships. The GSA prohibited a U.S.-owned, operated or flagged vessel from being used "principally" for the purpose of gam- ing or from offering "large scale commercial gam- bling" activities. The laws were enacted in a time when law enforcement needed such tools to moni- tor and prosecute potential criminal elements.

The gaming industry evolved into a highly regulated environment as controls in Nevada, and later New Jersey, caught up with the grow- ing business. With respect to passenger vessel gaming, however, federal law remained in a time warp which did recognize the economic potential of the market for day/short cruising and extended overnight cruises and the importance of gaming to the successful development of those markets.

In the early 80s, serious efforts were made in

Congress to change U.S. law and allow U.S.-flag shipboard gaming, while still maintaining ad- equate law enforcement controls. Those efforts