The Stage

Gambling bill ‘falls short’ on key issues

Published Tuesday 26 October 2004 at 15:25 by Ruth Gillespie

National policy governing the number and location of Las Vegas-style entertainment casinos will be determined by a free-for-all unless Whitehall produces guidelines to control decisions taken by local planning authorities, a top parliamentary advisor has warned.

Professor Peter Collins, who advised the committee scrutinising the new gaming bill before it was introduced to parliament last week, said Downing Street had not produced any rules as to where large-scale entertainment complexes should be built and how many should be permitted.

Speaking to The Stage, Collins - director at the Centre for the Study of Gambling at the University of Salford and chief executive of charity GamCare - said: “If the bill goes through as it is, then these decisions will be left to regional and local authorities. They will have to agree among themselves in accord with the general planning process and in accord with guidelines as yet to be written by the Gambling Commission, which is as yet to be established.

“It would be better to have a national plan in place now and to address these questions rather than leaving a messy and confusing situation.”

So far this year there have been almost 100 casino applications in anticipation of the new legislation, with many more expected. However, the government has predicted that market demand will restrict the number of operations to between 20 and 40 throughout the UK.

A spokesperson for the Department for Culture, Media and Sport said: “We are giving local people and councils the opportunity to decide for themselves whether they want a casino in their area. It gives them the power to say no if they want to and the market will prevent an explosion of these complexes on every street.

“We are taking a softly, softly approach to begin with and if we are wrong then the Gambling Commission will be able to impose tougher rules and controls. However, we would prefer not to put a statutory cap on the number of casinos established locally or throughout the UK.”

In June Downing Street rejected a report, published by the scrutiny committee, which advised against permitting regional casino in city centres. Had the recommendations been followed, it would have paved the way for resorts such as Blackpool to become gambling and entertainment destinations.

Collins added: “Under the existing planning process, city centre locations are favoured for large-scale sports and entertainment developments. Casinos will fall into this category and the danger is that they will suck all the leisure spend out of local businesses and existing entertainment faciltities, such as theatres. Large, internationally-owned resort complexes will be able to buy in top quality shows and the local venues will not be able to compete.”

Of the plans announced, overseas investors have pledged more than £2 billion to develop inner-city areas. US gaming giant MGM Mirage is planning developments in Liverpool, Salford, Sheffield, London, Newcastle and Glasgow, while Bahamas-based Kerzner International has favoured Manchester and Glasgow and earlier this year struck a deal to build a £189 million casino on the site of London’s Millennium Dome.

Besides the supersized casinos, there will be others designated “large” and “small”, which will house slot machines and some form of alternative entertainment, although Collins said he was doubtful this would include live acts.

Gaming consultant and former managing director of Leisure Parcs Mark Etches said: “Economics will dictate that there can not be many more than 20 large-scale casinos throughout the UK but the government should be playing a more involved role in creating the future landscape. The new gaming bill offers fantastic opportunities for jobs, investment and new entertainment outlets and central government needs to express a view as to how it wants this to be used across the regions and not just sit back, saying market forces will decide.

“It is important that local authorities are the decision makers when it comes to local planning but the level of knowledge and understanding of casinos and gambling is unequal across the different regions of the UK. Downing Street needs to set up guidelines by which it can help councils to decide where and how large-scale casino development can take place.”