Shadow Finance Minister Bob Richards has warned embracing Internet gambling would be like "waving a red flag to a bull" to anti-gaming authorities in the United States.
Consultants hired by Government and hotels are currently assessing Bermuda's credentials as a potentially money-spinning centre of online gaming, which could mean people in the US having their wagers processed on the Island.
However, Mr. Richards said this would risk angering American officials who have tried to stamp out Internet gambling and have already clashed with Antigua and Barbuda over its position as an online gambling centre.
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