Britain Could End Up With Too Many Casinos

City analysts fear the rush to build a new network of Casinos across the UK could initially lead to oversupply.

In the past few days Britain's operators have made applications to build more than 90 new casinos to add to the 140 already operating.

They are taking advantage of legislation which paves the way for 17 new casinos plus one Las Vegas-style supercasino. However, operators have also hurriedly put in dozens of applications under the old 1968 act which remained in force until the end of April 2006.

The Gambling Commission is currently examining 62 applications, while 31 have been given the go-ahead and passed on to local magistrates' courts for the final hurdle.

One casino executive said: "There has been a bit of madness recently. The question is how many of those 93 will eventually get through."

Liverpool based Stanley Leisure, Britain's biggest operator with 44 outlets, is sure to be heavily involved in the process and is keen to be the company chosen to build the first super casino.

The Commission has not refused a single application in the last five years but it has warned that might change. Previous applications have been from established and well-known operators while many of the new applications are from less well-known companies.

Analysts said operators expecting the wave of new outlets to encourage a big increase in the popularity of casinos may be in for an initial disappointment.

Charles Wilson at Bridgewell Securities said: "There is a danger of oversupply if a lot of these number come through, but eventually demand will catch up. Probably there will be a mismatch in some places. Increasing advertising will be the key but it will still take people time to realise they can plan a night around a casino."