No Reprise For Small Operators With UK Casino Bill

Following a torrid fortnight of media backlash and misinformation, the UK gambling sector was finally presented with the basis for its new Bill with there being little change from the government's stance in its draft paper.

Whilst opening up the sector to large-scale 'regional' developments with 1,250 unlimited jackpot machines, the UK government's reluctance to backtrack on category A entitlement means that the big issue for many existing, smaller British based operators remains stakes and prizes for category B machines and, of course, levels of taxation. The bill outlined four sub-categories of category B machine with casinos given the top band, which at £1 maximum stake, £2,000 maximum jackpot, remain currently unchanged.

To many existing operators, an increase in category B jackpot is crucial to their survival, although the bill does state 'stakes and prizes proposed for all categories of gaming machines are purely provisional, and will be subject to further consideration prior to the implementation of the Gambling Act.'

The Department for Culture Media and Sport offered some words of consolation to smaller operators in its risk assessment report. "Overseas experience shows that only a small proportion of machines offer prizes of over £2,000 or stakes of over £1, even where unlimited prizes and stakes are permitted. Hence, the disadvantages for small and large casinos may be less in reality than appears at first sight," it said. But this will do little to appease those fighting for an even spread of the unlimited jackpots.

The last few months have seen over 100 outlined projects for casino development in the UK, many of them of regional significance, but in reality it is unlikely that more than 20 to 30 will see the light of day.

Culture secretary Tessa Jowell said that the government would even shut down Las Vegas style casinos if 'impact tests' proves there to be a rise in problem gambling. "The Gambling Bill is not about printing pounds for casinos. I'm very concerned that we don't see an increase in problem gambling," she said.

The government is hoping for Royal Ascent for the Bill in mid 2005.