The Casino Cheat Code
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A tourist jumped into a Facebook group earlier this week, bragging that the casinos in St. Maarten “don’t take out taxes on jackpots,” proudly sharing it as if he had discovered a hidden cheat code. It was cute for him, but for anyone who understands the country’s financial reality, it was not a fun fact. It was a flashing warning light. “Tax free” does not mean that the island is generous. It means the tax framework is being stepped over, proper regulation is still not in place, and the St. Maarten Gaming Authority Board remains stuck in legislative limbo. This also means that one of the most cash-heavy industries in the country continues to operate with limited dedicated oversight, while money that should be supporting national development is left sitting there as if it is on layaway.
Here is the part that should surprise no one. The International Monetary Fund stated this clearly in its 2021 Article IV assessment. St. Maarten has no modern, activity-based casino tax, and casino turnover and winnings are subject only to small levies that do not reflect real casino profits. The IMF explicitly recommends taxing casino turnover and winnings as part of a sustainable tax reform package, confirming that the current fixed fees cannot be considered casino taxes in any meaningful sense. If that was not enough, the Minister of TEATT confirmed in Parliament that casinos owe the government about 17 million guilders in unpaid license and control fees. The number is public and documented. The warnings could not be clearer; however, the response has been to whisper, delay, and schedule another meeting.
While all of this is happening, the impact lands squarely on the people of St. Maarten. A winner walks out with every dollar of their jackpot because casinos do not withhold tax at the source, and there is still no modern regime to tax gambling winnings in line with international best practice. The casinos walk away with full pockets. But the country? It’s left with potholes, stalled projects, underfunded programs, and a government that has the gall to bawl “we brokes”, even while leaving politically sensitive revenues untouched. Tourist excitement is built on the back of a system that does not serve the people who bear the real cost.
This is why the Gaming Authority Board cannot remain a talking point in speeches. According to the Governor’s 2025 address, the feasibility study and legislative framework for the Authority are now complete, and the draft legislation is scheduled for submission in the 2026 legislative year. No one should hold their breath. Only St. Maarten could treat an important regulator as a side quest. Meanwhile, casinos continue to operate under fragmented and overstretched supervision, a level of freedom that should concern anyone paying attention, especially with the international spotlight on anti-money laundering and tax compliance.
These warnings are not new. The Caribbean Financial Action Task Force has repeatedly flagged St. Maarten’s Anti-Money Laundering and Combating the Financing of Terrorism framework as needing serious improvement, with casinos listed among the high risk entities that require stronger preventive measures and closer supervision. St. Maarten remains under enhanced follow-up, with authorities aiming for better ratings before 2026 to avoid the reputational and economic fallout of potential grey listing. This represents more than six years of documented risk, repeated technical findings, and slow political follow-through.
Part of the delay comes down to political arithmetic. Casino licenses are not merely pieces of paper. They are economic assets and bargaining tools that shape relationships behind the scenes. Public discussion in St. Maarten has long raised concerns about license leasing, unclear ownership structures, and the perception that gaming interests are too close to political campaigns and decision making. When the industry that needs to be regulated is widely seen as a source of political leverage and quiet financial support, reform tends to move like a snail with a limp.
This political entanglement is why enforcement alone is never enough. A regulator cannot properly supervise an industry that holds influence over the actors responsible for setting and enforcing rules. The government must show that the people of St. Maarten matter more than the private benefits tied to casino licenses and the quiet influence that comes with them.
Instead, the country is left with a Gaming Authority Board that performs better in presentations than in practice, while tourists keep spreading the word that St. Maarten is a jackpot paradise with no visible strings.
The tourist who sparked the conversation did not see the millions in unpaid fees, the outdated tax structure, or how little the casino sector contributes compared to its footprint. He celebrated something that looked like a loophole, but it was the product of decades of neglected reforms in taxation, supervision, and political transparency. That neglect is the real problem.
If St. Maarten wants a future that is stable, credible, and less dependent on outside support, the government must move beyond statements and intentions. Capacity may be limited and reforms may take time, but the tools that already exist must be used. The government must be honest about the future it is shaping. Finalizing and operationalizing the Gaming Authority Board is only one step. The country also needs a modern tax framework, proper taxation of the gambling sector, stronger enforcement, and real follow-through on CFATF recommendations. None of these measures will take root unless political interests are finally separated from the industry they are meant to regulate.
Fairness matters here. The national budget is already stretched thin, and some sectors continue to benefit from the country’s infrastructure without contributing their share to its sustainability. When enforcement is soft and accountability is selective, those who try to comply end up carrying more than their fair share of the burden. This imbalance limits the country’s ability to plan, invest, and deliver services and erodes public trust.
This brings the story back to the tourist. His excitement was not the issue. His excitement exposed the issue. Unpaid fees, weak supervision, slow political follow-through, and an outdated tax framework have created a system where loopholes feel like selling points. That is the real warning sign.
Until these problems are addressed, the St. Maarten Gaming Authority Board will remain more of a symbol than a solution, and the deeper issues will continue to repeat themselves. Tax-free jackpots may thrill visitors, but accountability is the real jackpot St. Maarten has yet to claim.