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U.K. firms oppose Blair’s gaming bill

Reed V. Landberg

Monday, Jan. 24, 2005 | 9:16 a.m.

U.K. gaming companies led by Rank Group Plc and Gala Group Ltd. are fighting Prime Minister Tony Blair's plan to open the industry to Las Vegas-style casinos, saying their businesses will be damaged by the competition.

The British Casino Association, representing London-based Rank and Gala of Nottingham, England, said the bill favors U.S. operators and will cost jobs and investment in the industry, which generates $11.5 billion a year and employs 100,000.

"We would prefer no bill to the one being proposed," said David Bowden, managing director of the gaming division at Rank, the No. 2 U.K. casino operator. "Once the new casinos open, we will find ourselves at a competitive disadvantage with a restricted range of products."

The bill, which the lower house of Parliament is voting on today, will allow 24 new casinos on top of the 134 now operating in the U.K. It will allow eight "super-casinos" of the kind operated by U.S. companies including Caesars Entertainment Inc. and MGM Mirage. It restricts the number of medium and small casinos, operated by companies such as Rank and Gala, after an amendment by Culture Secretary Tessa Jowell.

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