“Now, Batista, he was a man who knew what he was doing.”

So what is it about Batista that made my pal so certain that a dictatorship knows best? That would make him claim that modern governments should look at Batista’s gambling reforms to improve their own?

The background on Batista is as follows…

Starting in the early 1930’s, he played various roles in the Cuban government over three decades; President, dictator, and military leader. Although he didn’t rule the whole time, he was pretty much in control of the government through puppet officials and managed a complete takeover of the government twice.

Interestingly, each time he got into power, he was closely supported by the US. In fact, Batista still had US backing even after being overthrown in the Cuban revolution. Of course, there’s always a reason…and the reason is this: the US government saw him as a leader with respect for American interests as well as a keen eye for business. They expected him to stabilise Cuba in a way that suited their own financial needs. And they were right.

Batista paved the way for American business to succeed; and one of the main areas that he (and in turn, the US government) thrived was gambling. He saw the gambling industry as a ripe opportunity; for improving the country’s economy, as well as his own pocket. So he seized control of all gambling businesses in Cuba.

After a little digging, I realise that, like my friend in the pub said, Batista was certainly the first of his kind.

Other countries had either outlawed gambling altogether or enforced so many rules and regulations that gambling went underground and became mafia controlled. This was the first time that any government had taken real steps to openly legalize and monopolise the gambling industry.

To do this, Batista formed a friendship and business relationship with well known US gangster Meyer Lansky. Of course, large sums of money exchanged hands for the privilege and Lansky was deep in the mafia – but the alliance was a peaceful one and Batista ensured that this connection opened the way for large scale gambling in Havana.
The reason the whole operation worked is that Lansky had free reign over the plush casinos that sprung up all over Havana, while Batista had control over the cash. Gambling was taxed towards state funds and, in addition, measures were put in place so that Batista and his political allies could take an additional share.
But one of the smartest moves came in 1955 when Batista announced that under his rule, the government would match any hotel investment of over $1 million…and with a casino license thrown in. In addition, there would be exemption from taxes for ten years and there’d be no duties on imports of equipment and furnishings for new hotels. And Batista was clever enough to keep his word.

As a result, Cuba became a profitable playground for American business. Hotels and casinos thrived and gambling quickly grew into a multi-million dollar industry, with games running to over a million a night. Luxury hotels held the most opulent casinos and, because they weren’t privy to betting limits, the rich and famous flocked to play. Havana soon earned the name “Latin Las Vegas.”

Of course it wasn’t without its problems; the rest of the country was in desperate need (a fact my friend tactfully overlooked). Casinos met with opposition from the general population. But, as you would expect when there’s millions involved, it was quickly crushed, and fear reigned. So casinos thrived up until the revolution led by Fidel Castro in 1959.

Casinos were the first target when Batista’s government was overthrown; gambling had become a symbol of government corruption and of the privileged classes. The opulence and decadence of each casino was revealed and proved shameful against a backdrop of nationwide abject poverty.

Castro openly hated gambling which he viewed as a waste of the country’s finances and an opportunity for government corruption. Since the people hated it too; he did what any new government leader does; he strived to give the people what they wanted by immediately outlawing gambling.

But maybe my friend in the bar did have a point when it came to Batista, because here’s the twist…

Even though Castro hated gambling and wanted to please the people, he quickly realised that it was a necessary commodity that he couldn’t do without. With the casinos shut down, the tourists left and took their business elsewhere. And so the business owners began to leave as well.

To save the economy from complete annihilation, Castro was forced to legalise gambling again. And he had to follow in the footsteps of his predecessor and have the funds supervised by the government.

But enough of the history lesson!

Has my friend gone mad or is there anything here that we can learn from? For a while there, someone had the whole thing running smoothly. Can we achieve the same in the modern age, without the corruption, and make it work?

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