Sivert Bjørnstad called for the island to be used for poker tournaments once the Progress Party succeeds in making playing the game for cash bets legal in Norway.
"A casino on Munkholmen would shut Caesars Palace in Las Vegas," the 23-year-old politician told Adresseavisen. "A casino located in the ocean, it would be absolutely wonderful."
Progress is negotiating with the Conservatives to allow poker tournaments with cash bets to take place in Norway.
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"Imagine arriving at the island on a beautiful summer evening in a boat, walking up the cobblestone hill to the Tower Building - with torches on both sides. It would be fantastic, and it would really put Munkholmen on the map," he said.