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Casinos hit out over gambling reform

Feb 21 2005

By Sophie Freeman, Daily Post

 

BRITAIN'S Casino Reform Bill heads to the House of Lords tomorrow, amid claims the proposals are anti-competitive.

Analysts and British firms say the Bill favours foreign corporations who have earmarked up to £2.6bn for building UK casinos. They fear the existing 137 small, members-only casinos will become redundant once new larger casinos are operating with more machines and bigger prizes.

The draft Gambling Bill would allow new Las Vegas-style super-casinos, such as the one planned by MGM Mirage and Peel Holdings for the Kings Dock waterfront.

MGM told the Daily Post last night that the decision on whether or not to proceed with the Liverpool scheme was heavily dependent on how the legislation passed through Parliament.

Earlier this year, Liverpool-based Stanley Leisure, Britain's biggest casino operator, said it had to tear up its casinos business plan after the Government scaled back the scope of its gaming reform.

And last month, Gala, which has several establishments on Merseyside, was forced to scrap a joint venture with Harrah's Entertainment as a result of changes to the Bill.

The loss of the deal cost both parties around £1.5m and Gala chief executive Neil Goulden said: "As it stands, this Bill is extremely damaging to the existing casino industry because it is discriminatory and anti-competitive."

The industry is now lobbying hard for limits on their existing £2,000 prize machines to be relaxed so they can compete on a more even basis with the expected influx of new arrivals. Existing casinos will have a limit of just 10 machines, whereas new casinos will be allowed 80-150.

"All we're asking for is the limit of 10 to be relaxed to say 20 or 25," said Mr Goulden.

The British Casino Association says if the Bill passes through Parliament unchanged, many of its members might seek redress from European Union competition authorities. "I'm absolutely, 100% certain some of our members would go to court," said chairman Penny Cobham.

The Government said the Gambling Bill's main priority was preventing a rise in gambling addiction. Culture Secretary Tessa Jowell said that Britain's low rate of problem gambling was at risk if laws were not brought up to date.

sophiefreeman@dailypost.co.uk

 

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