U.K. gambling bill to set initial super-casinos limit

Robert Hutton

Tuesday, Nov. 16, 2004 | 9:11 a.m.

The U.K. government will set an initial limit of eight Las Vegas-style super-casinos in its new gambling bill, to reduce opposition from members of Prime Minister Tony Blair's Labour party.

The "pilot phase" of eight super-casinos will be announced to the committee of lawmakers examining the bill this morning by Sports Minister Dick Caborn, a government official who asked not to be named said.

Twenty-nine of Labour's 407 lawmakers voted against the bill when it passed its first regulatory hurdle on Nov. 1.

Stanley Leisure Plc and Rank Group Plc, owners of casinos in the U.K., have said they will benefit from the bill's plan to allow more casinos. The government predicts the amount gambled in Britain will rise from 8.7 billion pounds ($15.9 billion) in the year through April 2004 to 12.5 billion pounds in five years, discounting inflation. MGM Mirage of Las Vegas and Kerzner International Ltd. of the Bahamas also plan casinos in Britain.

The impact of the super-casinos will be assessed over an unspecified period of time to see whether they lead to an increase in problem gambling and whether they help to regenerate the areas where they're built, the government official said.

"The opportunity is so significant that people are willing to wait it out," Steve Kent, gaming analyst with Goldman, Sachs & Co. in New York said Nov. 1. "In the U.S. there have been limits to the number of commercial casinos. The U.K. is a brand new market for them. From a unit grow perspective it's critical."

Once it has been scrutinized by a committee of lawmakers, the legislation returns to the House of Commons, the lower house of Parliament, in its final form for a third reading where changes can't be made. Once a measure passes three readings, it is considered by the House of Lords, which may offer amendments the Commons can accept or reject, before Queen Elizabeth II gives royal assent.

A poll of 2,136 adults by YouGov Ltd. showed 46 percent of those responding oppose changes to gambling laws and 39 percent are in favor. About 70 percent said there would be more people "addicted" to gambling if bigger casinos are built. The survey was conducted by internet between Oct. 26 and Oct. 28. No margin of error was given.

A government study estimates the bill's provisions would generate as much as 5.5 billion pounds of investment and create as many as 85,000 jobs. Blair has said the current 36-year-old gambling laws need an overhaul to prevent children from using slot machines installed in taxi offices and convenience stores. Gaming in the U.K. supports about 100,000 jobs, the study says.

Last month, Caesars Entertainment Inc. said it would build a 320 million pounds, 75,000 square-foot casino in Wembley, a north London suburb that also is home to the English national soccer stadium.

When a casino is built, the legislation provides for secret visits by Gambling Commission officials to make sure the facilities are complying with new rules forcing staff to check the age of gamblers.

The government will also carry out national audits of U.K. gambling behavior every three years, with the first audit taking place before the bill comes into effect. No further relaxation of the rules will be considered until three audits have been carried out -- effectively six years after the bill is passed, Tessa Jowell, Cabinet secretary for the Department of Culture, Media and Sport, said Nov. 3.

U.K. law currently forbids gambling machines paying prizes exceeding 2,000 pounds. The bill would let casinos larger than 5,000 square meters install up to 1,250 no-limits machines.

All casinos now are restricted to members and gamblers must have been members for 24 hours before they can enter. The bill would eliminate that requirement. The measure also would allow betting on Good Friday and Christmas Day, and it would permit casinos to advertise for the first time.