BRITISH SUPERCASINO PLAN CANNED (Update)

29 February 2008

Much anticipated U-turn by government confirmed by minister


The grand supercasino plans of a previous Labour administration were finally abandoned in London this week when Culture Secretary Andy Burnham announced in Parliament that there would be no supercasino development, although 16 other medium to small land casinos would go ahead at various locations in the UK.

Industry and media speculation has been rife since the then new prime minister Gordon Brown announced a rethink on the more liberal gambling plans of his predecessor, Tony Blair. The announcement by Secretary Burnham therefore came as no surprise.

Plans for the supercasino, which was scheduled for construction in Manchester, were scrapped after ministers admitted it would have fuelled problem gambling without boosting the economy. As the government formally withdrew proposals to introduce Las Vegas-style gambling to the UK, Hazel Blears, the Communities Secretary, said a review had found deprived areas were unlikely to have prospered as a result of the supercasino.

Burnham said that his instinct was to proceed with caution, and that smaller casinos did not pose the same level of risk to the public as a supercasino.

Manchester City Council said it would wait to see whether the Government came up with alternative means of regenerating the deprived area in the east of the city where the supercasino would have gone. The council has been in talks with top legal experts with litigation against the government in mind.

Sir Richard Leese of the Manchester council warned that if regeneration cash equivalent to the GBP 265 million as promised was not forthcoming, the council would consider legal action which could cost local and central government taxpayers many millions of pounds.

MPs from the region queued up to condemn the "bonkers" decision to invite councils to submit bids to run the supercasino - at a combined cost of more than GBP 1 million - and then cancel the programme a year later.

But Secretary Burnham told the House of Commons that while the Government would press ahead with plans for eight "large" and eight "small" new casinos, with maximum slot machine jackpots of GBP 4 000, introducing the vast supercasino would have changed Britain’s gambling culture forever.

He said: "The regional casino would have been allowed up to 1 250 unlimited stake and prize gambling machines - something not seen before in the UK."

Communities Secretary Blears said the Government would now consider other ways to regenerate Manchester, as she unveiled a GBP 300 million package of aid for Blackpool. The seaside resort had been widely expected to win the bid and the local council had also threatened to launch legal action.

So far, 15 of the 16 approved medium-sized and smaller casinos have been given the go-ahead..

The smaller casinos – in Scarborough, Wolverhampton, Swansea, Luton, Torbay and East Lindsey, Lincolnshire, as well as Stranraer – will have up to 80 machines offering up to GBP 4 000 in prize money, with an area of up to 1 500sq m. They will not be allowed to open for more than 18 hours a day.

The bigger casinos – in Leeds, Southampton, Great Yarmouth, Middlesbrough, Solihull, Hull, Milton Keynes and Newham, London – will be restricted to 3 500sq m and will have up to 150 machines with a maximum prize of GBP 4 000.

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