What law applies on a casino cruise ship miles out to sea?

By | June 7, 2024

Cruise ships have long been synonymous with carefree, even rule-free breaks from life on land. Onboard water parks, unlimited buffets, world-class performers and late-night bars have become the bare minimum on many large cruise ships.

But just like on land, things can go terribly wrong. And when they do, the question of what rules apply on a ship suddenly comes to light.

At the beginning of May, cruise passenger Shane Dixon fell to his death aboard the P&O Pacific Adventure. The body of the 50-year-old father of three was found 10 nautical miles off Sydney Heads.

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According to reports in the Daily Mail, Dixon’s brother Scott said that Shane gambled at the casino on the ship. P&O has refused to comment on the circumstances surrounding Dixon’s death and there is no suggestion that P&O or the ship’s crew failed to comply with the law or were negligent in this regard.

So what is the situation with gambling at sea?

What kind of gambling do cruises offer?

Casinos – complete with gaming tables and poker machines – are common on large, mainstream cruise ships and some smaller luxury cruises. Norwegian Cruise Lines ships have a total of 4,800 slot machines, while Royal Caribbean’s Allure of the Seas has a casino of over 1,600 square metres.

The popularity of onboard casinos is due in part to their connection to travelers’ loyalty accounts, which offer points that can be used to pay for food, drinks and future cruises.

It was announced on Tuesday that P&O Cruises will close in early 2025 and two of its three ships will be integrated into its sister line Carnival.

But as long as the P&O casino operates, it is a member of the Players Club, where “the more points you earn, the more benefits you will get,” according to the company’s website.

Alex Russell, an associate professor in the experimental gambling research laboratory at Central Queensland University, says land-based casino membership programs are not uncommon and also offer loyalty points that can then be used to make purchases.

What is the law on a ship?

Ships within 12 nautical miles of land are generally subject to the laws of that country or state. Outside this limit, they are generally subject to the laws of the country in which they are registered.

“You’re not only subject to flag law, you’re also subject to some degree to the law of your nationality,” says Tim Stephens, professor of international law at Sydney Law School.

Like all P&O Cruises Australia ships, Pacific Adventure sails under the British flag. However, the UK Gambling Act contains a provision which means that the Gambling Commission, the UK’s gambling regulator, has no jurisdiction over the gambling operations of a ship traveling to international waters. Operators must be licensed by the commission only if the customer, not the operator, is in the UK.

On cruises in international waters, offenses in the UK or other jurisdictions (such as venues offering limited credit to gamblers or offering free alcoholic drinks to encourage gambling) are not recognised.

To avoid a possible conflict between flag laws and local laws, cruise ships only open casinos and duty-free shops when outside their territorial waters.

Beyond 12nm, “anything is acceptable as far as gambling is concerned,” says Stephens.

Has the legal status of cruises contributed to their popularity?

David Beirman, an associate researcher in tourism and management at the University of Technology Sydney, says independence from local laws has long been a big selling point for cruises.

Ships of the 1920s and 1930s, including the Queen Elizabeth and Queen Mary, all had casinos, offering a way to get around alcohol prohibition in the United States.

“This was part of the glitz and glamor of a very glitzy industry, at least for first-class passengers. Because they navigate international waters, they are not beholden to any one country’s stance on gambling, Beirman says.

Are there gambling regulations on board?

A spokesman for P&O Cruises Australia, which is owned by Carnival, said the company “has responsible conduct policies on all P&O ships and games.” [they] take these policies seriously.”

The company’s website says guests are given “information and resources to help them make informed choices about how they gamble” and “responsible gambling training for our teams, as well as self-help materials and initiatives such as a self-exclusion program for our guests.” ”.

The spokesman said it was inappropriate to comment on Dixon’s death while a criminal investigation was ongoing and that the company was cooperating fully with the investigation.

P&O is a member of the industry body Cruise Lines International Association, which has its own gambling policy based on gaming rules in Nevada, New Jersey and England.

These rules include contact table minimum and maximum betting limits, adult-only games, regular inspections and mandatory supervision.

How are these regulations implemented?

Responsible enforcement of gambling rules is difficult even on land, while relying on a gambler’s self-exclusion leads to problems, Russell says.

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“We know that [intervention] it often doesn’t happen, and that doesn’t necessarily mean a failure of the staff,” he says. “It’s really hard to tell when someone is out of control. “You don’t know how much money someone has in their bank account, so it’s very difficult for staff to step in.”

Carol Bennett, chief executive of the Gambling Reform Alliance, says alcohol and gambling-related co-morbidities can increase on journeys as travelers are isolated from supports and services, making safety measures doubly important.

“Questions about these regulations need to be answered. Who takes responsibility and what does that look like? “Who protects the people who go on these journeys?”

How is the flag law audited?

John Kavanagh of Pacific Maritime Lawyers says: “Pragmatically, the flag state has a responsibility to investigate issues with that ship wherever it is, but the further away the ship is from home, the logistics make it very difficult.”

There is a long and strong tradition of the absolute authority of the ship’s captain at sea.

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