The role of casinos in Grenada's economy

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1) Briefly about the context

Grenada is a small island economy, where tourism and services form a significant part of GDP. The gaming segment is represented mainly by small halls at hotels and tourist clusters (video slots, a little board), and the online market actually goes offshore. This means that the economic effect of casinos today is more local (jobs, purchases, services), and the fiscal potential of online is underutilized.

2) Channels of economic influence

1. Direct contribution

Royalties and fees (if applicable), rent payments, utilities.

Fund for remuneration of dealers, technicians, safety, management.

Direct taxes: income tax, VAT/sales taxes (as applicable), stamp duties.

2. Supply chain

Procurement: IT equipment, slot park maintenance, repair, cleaning, catering, marketing.

Services of external providers: transport, events, local artists, printing, souvenirs.

3. Induced effect

Salaries of staff and suppliers are returned to the economy through consumption: retail, catering, rental housing, financial services.

4. Tourist multiplier

Casinos as part of the "experience package" increase the length of stay and the average guest check; stimulate the loading of restaurants/bars and night activities.

3) Employment and skills

Direct jobs: Dealers, cashiers, pit bosses, slot engineers, security, F & B.

Indirect: marketers, FX/cash services, IT support, taxi/transfer, animation.

Skill base: foreign languages, service, basic financial management, compliance (KYC/AML), technical support of equipment.

Social plus: casinos often act as a school of service professions for young people, with the possibility of career growth in the hotel sector.

4) Fiscal revenues: what make up

Even in a small market, the sources of state revenue can be diversified:

Source	Brief description
Licenses and Permits	Annual/one-time fees for facilities and activities
GGR/income taxes	Percentage of gross gaming revenue (where applicable)
Corporate taxes	From operator's profit according to general rules
Payroll taxes	Payroll contributions/income tax
Indirect taxes	VAT/sales taxes on related services (where applicable)

💡 The online segment without a local license does not generate direct taxes to the budget, which reduces the fiscal potential of the sector.

5) Tourism: a bunch of "casino + rest"

Product differentiation: casinos help hotels stand out in regional competition (Jamaica, Dominican Republic, Aruba, etc.).

Increased load in the "evening belt": after the beach and excursions, guests receive an evening "anchor" of activity.

MICE and events: mini-slot/blackjack tournaments, bingo nights, themed shows pull in F&B revenue and ancillary sales.

6) Small business and local procurement

Food supply: local drinks and snacks in casino bars.

Creative and merch: souvenirs with island symbols.

Transportation and excursions: "game + gastro/rum tour/diving" packages.

Cross-promo: vouchers for restaurants, spas, water activities - the economy of the "spill" on neighboring businesses.

7) Risks and costs

Reputational: Without transparent rules, the sector can be associated with a "gray area" and scare off conservative investors.

Social: the risks of problem play - Responsible Gaming programs are needed (limits, self-exclusion, staff training).

Legal/compliance: the lack of an online framework complicates the fight against shadow trafficking and limits fiscalization.

Online demand leak: traffic and margins go offshore, reducing the incentive to invest in local facilities.

8) Scenarios 2025-2030 (simplified)

Scenario	Key steps	Economic effect
Status Quo	Without online reforms; point support for offline objects	Stable but limited contribution: employment + local purchases
Light-regulation	Ground Hall Licenses/Fees, RG and Compliance Standards	More transparency and predictability, increased investment in small objects
Online Frame (B2C/B2B)	Licenses for operators and suppliers, GGR tax, KYC/AML requirements	Add. budget receipts, new jobs in iGaming, marketing effect for tourism
Tourist mode	Online for non-residents, limited access for residents	Growth of "evening" tourist check, decrease in leakage to offshore

9) KPI for contribution assessment

Fiscal: license fees, GGR taxes, corporate taxes, indirect fees.

Labor market: number of direct/indirect jobs, average salary, vacancies.

Tourism: average length of stay, average expense for the evening, the proportion of guests who visited the play areas.

Responsible play: number of self-exclusions/limits, RG staff training coverage, hotline calls.

Investment: number of updated/new halls, CAPEX in equipment/IT/security.

10) RG policies and social initiatives

Responsible Play Fund: Fixed% of GGR or licence fees for prevention and care.

Player tools: deposit/time limits, timeouts, self-exclusion, visible warnings.

Personnel training: problem game recognition, correct communication scripts.

Transparent marketing: no pressure on vulnerable groups, responsible advertising practices.

11) Roadmap for the regulator and industry (sketch)

1. Diagnostics (0-6 months): audit of current offline objects, set of taxes/fees, assessment of online traffic leakage.

2. Draft framework (6-12 months): licensing rules, RG/KYC/AML standards, public register of licenses.

3. Pilot (12-24 months): launch of licenses for ground halls according to the updated rules; online B2C/B2B test (limited number of licenses).

4. Scaling (24 + months): development of the B2B cluster (software suppliers, call centers), integration with tourism (joint campaigns).

12) What does it give the economy

Stable local effects now: employment, purchases, evening turnover in resort areas.

Medium-term potential in regulation: licenses, digital jobs, export of services (B2B), additional tax base.

Image: Moving from a "grey" perception to a transparent and secure Caribbean jurisdiction

Today, Grenada's casinos provide a local multiplier (work, procurement, F&B, tourism), but the structural fiscal potential remains under-realized due to the lack of an online framework. The combination of transparent offline licensing, implementation of RG policies and phased online regulation (B2C/B2B) can convert the entertainment sector into a sustainable source of budget revenues and quality jobs, while maintaining tourist attractiveness and public trust.