Investors Could Find Region Is A Safe Bet
The Gambling Bill will give local authorities the responsibility for licensing gambling premises. Work is being undertaken all across Government to prepare local authorities for this.
Last winter, after widespread concern over casinos, the Government decided on a cautious approach with, in the first instance, only eight regional casinos. It has now announced that, in this first wave, only eight large and eight small casinos will be allowed. An independent panel will decide where they can be based.
Leisure developers in the North-East could be the major beneficiaries of the new Gambling Bill, whether or not they get permission to build super casinos.
For there is a growing feeling that regeneration will be a deciding factor in deciding which areas are licensed for major regional casinos.
Regional development agency One NorthEast has commissioned research into the possible effects of the new legislation because it believes development agencies will be given the final decision on consents.
It is worth bearing this in mind as the furore about the new Gambling Bill continues to rage. It is also worth remembering the UK enjoys a worldwide reputation for a having a fair, uncorrupted gambling industry, of which casinos form a significant part.
In the 1960s, prior to the Gaming Act of 1968, UK casinos were infiltrated by criminals and organised crime. It is generally accepted that casinos remain the most vulnerable sector in the gambling industry, with such high sums of money in circulation where fraud and money laundering can potentially occur.
As of 1968, individuals wishing to operate a casino have had to apply to the Gaming Board, where an analysis of suitability, diligence and financial legitimacy has been a successful barrier to criminals.
The aims of the new Bill revolve around three core objectives, which have been central since the 2001 Budd report and subsequent Government response A Safe Bet For Success published in 2002. They are:
Gambling must remain crime-free
Gambling must be conducted in a fair, open way
The young and vulnerable must be protected
In delivering these objectives, the new Bill will replace three Acts of Parliament: the Betting Gaming and Lotteries Act 1963; the Gaming Act 1968 and the Lotteries and Amusements Act 1976. A new regulator, the Gambling Commission, will replace the Gaming Board, in place since 1968.
The controversy which surrounds the Bill reflects the complexity, economic value and social relevance of gambling. A balance must be struck between calming restrictions which frustrate development plans of both UK and overseas casino developers, and the level of freedom that "players" are exposed to.
Investors with plans for large-scale 'resort' casinos must continue to wait for the appointed scrutiny committee to define this size band and the subsequent planning conditions and obligations of the developer.
As I mentioned, the planning process will have a vital role in development of the casino industry, with plans and potential involvement of regional development agencies dictating location of new schemes.
The sequential test will still apply. If a casino is "of regional significance", more planning bodies are likely to be involved. But Newcastle already has a thumbs-up by Damien Aspinall, son of late gambling tycoon John and head of the Aspinall's casino chain.
Aspinall, scheduled to open a 45,000 sq ft casino in The Gate this summer, said: "We considered Newcastle and The Gate as the best potential market in the UK. It is such a leisure-orientated city, proven by the success of The Gate, that it ticked every box for us."
Tim Evans is the senior partner at the Newcastle office of property consultants Knight Frank.
