Inside Asian Gaming

INSIDE ASIAN GAMING | July 2010 38 Survival Island UK Casinos face up to life after the Gambling Act T he economic and regulatory landscape that has evolved in the UK is very different from that envisaged in the heady days of 2002 when consultation leading to the 2005 Gambling Act began. However, the British casino industry is nothing if not resilient. The patient may not be very well, but it certainly isn’t dead. Along with most sectors of the UK economy, times have been difficult for the casino industry. The effect of the recession on consumer spending was to be expected, but the industry also has had to contendwith the new regulatory environment created by the Gambling Act. In 2009, there were three casino closures—including London Clubs International’s Fifty, formerly the famous Crockfords—and two openings, which meant that there were a total of 142 casinos operating in the UK at the end of the year, compared to 143 the previous year. Of the 142, 24 were in London and 118 in the provinces. When the Gambling Act came into force in September 2007, it allocated 16 new licenses: eight for “small” casinos and eight for “large” casinos, the essential differences between the two being maximum square footage and allowable gaming positions. The act also stipulated where those licenses could be awarded by local authorities. Large casinos could be licensed in Great Yarmouth, Kingston-upon-Hull, Leeds, Middlesbrough, Milton Keynes, Newham, Solihull and Southampton. The small casinos could be licensed in Bath and North East Somerset, Dumfries and Galloway, East Lindsey, Luton, Scarborough, Swansea, Torbay and Wolverhampton. While there are some applications pending with local authorities, as yet, none of the new licenses has resulted in a new casino. Peter Wilson, a lawyer with the London firm of Memery Crystal, blames democracy for why none of the 16 licenses is currently active. “The local administrations have been slowly but steadily grinding on towards the issue of licences,” he says. “Local democracy means giving everyone a say, so local authorities consulted on their new gambling policies and proposed criteria for awarding the precious licences. The process is complex, involving the running of a competition whereby applicants will need to illustrate the additional benefits their proposals can bring the community besides a mere gambling opportunity.” Roy Ramm, director of compliance for London Clubs International, speaks for many in the industry.“The process of allocating the 16 licenses has been unbelievably slow,” he says.“That is partly down to Government not passing the necessary enabling legislation until 2008. It probably won’t be until 2011 before any of those new casinos see the light UK Gambling Act