| Further setbacks for Government over casino plans |
The British Government faces a backlash over its gambling laws as potential bidders for the 16 new casino licences start to get cold feet - just as all the legal paperwork is being finalised.
Casino groups Gala Coral, Rank, Stanley Leisure, Ladbrokes and Genting have all significantly restricted their plans to make multiple bids for the new casino licences.
The Casino Location Order, part of the 2005 Gambling Act, is due to go before the House of Lords in the next couple of weeks where, if accepted, it will become UK law.
The 16 licences were created in a huge shakeup to the UK’s gambling laws last year, in which the Labour Government looked to relax restrictions on gaming. But hopes that they would attract millions for regeneration, create masses of jobs and boost the UK’s gaming industry are now under threat.
Former Culture Secretary James Purnell last year said advertising rights for casinos might be withdrawn, adding further doubt and instability to the industry. Another casino operator questioned the locations chosen for the proposed casinos, with many being industrial towns where the Government hoped the investment would spark large-scale regeneration.
Purnell said; “It is ludicrous they are granting licences in these areas. It will not drive regeneration but put pressure on existing casino operators, who are already stretched, and send them to the wall.”
With plans now under threat, the Government may need to once again rethink its strategy on this highly contentious policy.
< Back to news index