TUESDAY IS CRUNCH TIME ON UK SUPER CASINOS

29 February 2008

If the speculation is correct, the city of Manchester could be launching legal action


British prime minister Gordon Brown and his government could be facing a major legal action from one of the country's chief cities later this week, when a final decision is to be announced on the controversial "supercasino" issue.

The overwhelming speculation by the media, industry and political experts is that Brown will scrap his predecessor's go-ahead for supercasinos in the cities of Manchester and Blackpool, where hopes were high that up to 3 000 jobs for each could be created.
Manchester city officials have already let it be widely known that a legal action could well stem from their disappointment if the government acts as expected.

The Times Online reported over the weekend that in an attempt to soften the blow, “sweeteners” worth hundreds of millions of pounds sterling will be offered to both areas. But it was told by sources in Manchester, the city that won the supercasino contest a year ago, that the local authority would press ahead with legal action to recover the GBP 250 million of investment it claims to have lost because of Brown’s U-turn.

Council officials last week held meetings with John Howell, the QC hired to advise on the legal challenge.

The UK government is widely expected to give the go-ahead to 16 new casinos on Tuesday. Eight “large” casinos, with 150 slot machines offering GPB 4 000 jackpots, are planned for Leeds, Hull, Middlesbrough, Milton Keynes, Great Yarmouth, Solihull, Southampton and Newham, east London.

Eight smaller casinos with 80 machines, also offering GBP 4 000 prizes, will be in Stranraer, Skegness, Bath, Luton, Swansea, Torbay, Wolverhampton and Scarborough.

Britain has about 140 casinos allowed to offer the maximum jackpot, though the number of slot machines in each is capped at 20.

The supercasino row could jeopardise Labour marginal seats in the northwest, where sitting MPs will face strong challenges.

Hazel Blears, the communities secretary, whose seat is in Salford, has drawn up a series of measures designed to regenerate the deprived east side of Manchester.

They include bringing forward the construction of a tram service, the creation of a medical research department for the university and the relocation of several quangos.

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