Newcastle UK Casino Venture Will Bring 1,500 Jobs

American casino giants have unveiled £200m-plus plans for a huge new leisure, hotel and conference complex which would create thousands of jobs.

The venture by the Mississippi-based Isle of Capri Group, close to Newcastle's Metro Radio Arena, would transform a semi-derelict area on the banks of the Tyne.

The scheme is in direct competition to the Newcastle United-MGM Mirage proposals to build a casino and hotel complex close to St James' Park.

There are also plans for major regional casinos in Sunderland and Middlesbrough, but any development in the North East would depend upon Government approval and Culture Secretary Tessa Jowell has said there will be only one nationwide.

The Chronicle revealed the Isle of Capri Group's interest in Newcastle in March and the company's American bosses were in the city with their architects this week to outline their detailed proposals to councillors.

The company says it wants to develop a "leisure and conference quarter" on land at Pottery Lane in association with two of the landowners, Network Rail and Strawson Property. The city council also owns part of the site, between the Redheugh and King Edward bridges.

Total investment by the partners would be "well in excess" of £200m.

The site is within the Discovery Quarter, a huge swathe of land between Gallowgate and Newcastle Central Station earmarked by the council as the city's next major regeneration area.

The UK casino would have gaming tables, slot machines, sports betting, an entertainment area and 'chill out' space.

There would be two hotels, one with 350 bedrooms linked to the conference centre and another with 300 bedrooms for the casino, bars and restaurants and leisure facilities, including a health club and shops.

VIP suites in the hotel would have views across the river and there would be 1,600 car park spaces.

The conference centre would have a main auditorium for 1,500 delegates and a second hall for 700 people, plus exhibition rooms.

The company says the complex would create 1,500 jobs with staff recruited locally, plus 650 during construction. The spin off across the region would provide employment for another 2,000.

A new public square linking the complex to the Arena under the Redheugh Bridge is proposed. Local roads would be improved and there could be direct access via a pedestrian boulevard to the Central Station.

Isle of Capri, founded in 1992, is one of the 10 biggest gaming companies in the US and has an interest in casinos in Wolverhampton, Walsall and Dudley through a UK subsidiary. The group is also involved in a major regeneration project in Coventry, including a new football stadium, offices, shops, hotel and exhibition areas.

Tim Hinkley, president and chief operating officer, said: "Isle of Capri will be pushing to make Coventry a regional pilot casino under the current Gaming Act. Isle of Capri is also keen to work with Newcastle City Council and help the city achieve the regional designation it deserves.

"We are hopeful the existing Gaming Act will be reviewed, creating an opportunity for more regional casinos and that Newcastle will be considered for regional status."

The company says Newcastle was chosen because it is a vibrant city with first class transport links and there are already many successful leisure industry companies with skilled workforces.

Isle of Capri says Newcastle has a progressive city council keen to see the early development of the Discovery Quarter and the company pledges to become involved in the community.

Mr Hinkley said benefits include a prestigious new landmark, major investment in the city, the delivery of a new conference centre which the council wants, enhanced leisure facilities, a boost for tourism and the chance to attract further investment.

Critics are concerned that super casinos will lead to gambling addiction and add to problems with crime and poverty and the city's Liberal Democrat leaders have pledged public consultations.

Coun Greg Stone, Lib Dem executive member for development and regeneration, said they would consider the social consequences as well as the economic benefits.

Both the Isle of Capri and the NUFC-MGM Mirage proposals will be given equal consideration.

Coun Stone said: "In planning terms, the Isle of Capri presentation set out interesting proposals for a key gateway site which currently presents an unattractive front door to the city.

"We have already received a presentation from NUFC and MGM Mirage and heard about the considerable investment and job creation benefits that would bring to the city.

"However, we acknowledge that the issue of regional casinos is still a controversial one. It is still not clear how the Government intends to implement this policy. The council has yet to make a decision about whether to support one for Newcastle.

"The Liberal Democrat executive will shortly be considering this issue and the merits of both proposals.

"Any decision will take place after full public consultation and after carefully studying available evidence about the social and economic impact of casinos."