Just coming off a cruise and I’m wandering who regulates the gambling on cruise ships. I have never heard of anyone winning big on a ship. Seems to me the odds of winning are slim to none.
We get this question a lot. Here's the latest.
United States cruise ships have offered gambling since 1991’s Cruise Ship Competitiveness Act. This allows U.S. ships to open the doors to their casinos as soon as they hit international waters.
But once they’re outside U.S. jurisdiction, casino regulation gets a bit muddy. An organization called the International Council of Cruise Lines (ICCL) claims some regulatory control, though a lot less than land-based casinos are subjected to, and enforcement of the regs is spotty at best. For example, you won’t find a Council representative on board your cruise ship in the event of a dispute with the casino.
As far as slots go, the ICCL mandates that cruise ships “meet the regulatory standards of the Nevada Gaming Control Board or other licensed jurisdiction for payback and internal software.”
That’s fine in theory, but our understanding is that cruise ships, especially those flagged in foreign countries, don’t have to release their payout percentages, so who would know for sure what they are?
And it doesn’t take an PhD economist to know that not only does a cruise-ship casino have no competition, it also has a captive audience. The casino isn’t unaware on any level that it’s the only game "in town" and its clientele are on vacation, looking for a good time, and have pockets full of cash to blow.
Also, though cruise-ship casino patrons are onboard for a week or so and the casino would like them to spend all their nights therein, they’re not exactly repeat customers. Once they disembark, it’s highly unlikely they’ll be back, ever. So the casino has every incentive to slaughter, rather than shear, its sheep.
That’s why cruise-ship casinos are notorious for their dismal payback percentages. We’re sure there are some exceptions, but as gaming writer Mark Pilarski eloquently puts it, “Plan on a bruising when cruising.”
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