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Government Sets Outs Cautious Approach To New Casino Regime

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The new system for deciding the location and licensing regime for new casinos was set out in the Gambling Bill Standing Committee today.

The new system will limit the number of Regional, Large and Small casinos to eight each in the first phase. This is to ensure that the risk of an increase in problem gambling is minimised whilst allowing for a proper assessment of their impact can to be made.

No more casinos will be allowed unless the Gambling Commission advises on whether their introduction has led to an increase in problem gambling and Parliament votes to allow an increase. This assessment will take place no sooner than three years after the award of the first premises licence for these casinos.

The locations for all the new casinos will be decided in a two-stage process. In the first stage the Government will appoint an independent panel to advise on suitable locations for new casinos.

The Panel will identify areas taking into account the need to test their impact in a range of different locations including seaside towns and cities. It will also look to provide a good geographical spread and will need to take into account Regional Spatial Strategies. It will produce a list of eight recommended areas for each category of casino. This would be expected towards the end of 2006.

The Secretary of State will consider the Panel's recommendations and after consulting the Scottish Executive and the Welsh Assembly will then decide which locations to designate. 

In the second stage Local Authorities in these areas invite premises licence applications.  Where there are more applicants meeting the regulatory tests than available licences, the Local Authority will run a competition.  It will be able to base its decision on a range of factors including employment and regeneration potential, the design of the proposed development, financial commitments by the developer to local projects, transport links, location and the range of facilities offered.

Any operators chosen by Local Authorities will still require an operating licence from the Gambling Commission. The Commission will apply an additionally stringent test of social responsibility. There will be no limit on the number of operating licences that may be granted.

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Minister for Sport and Tourism, Richard Caborn said today:

"The overarching priority of this Bill is to protect children and vulnerable people. That's why we've adopted a cautious approach throughout, listening to the people's concerns and responding to them.

"Limiting the number of Regional casinos to eight in the first phase is a cautious move that will allow us to test the impact of a new kind of casino on the levels of problem gambling. We also believe its right to apply this same level of caution to Small and Large casinos. 

"We've always said the risk of an uncontrolled proliferation of smaller casinos on every High St poses the greatest risk to our low levels of problem gambling. With Regional casinos limited to eight it's possible we could see more than 100 new casinos.

"This has made us look again at the potential risks posed by Small and Large casinos and we now believe it's right to set an initial limit on the numbers of eight each.

"Like Regional casinos if, after careful assessment, we decide it is safe to allow more, it will be for Parliament to approve it."

Mr Caborn went on to talk about the new system for deciding the location of new casinos:

"The new system will allow us to test the impact of new casinos on levels of problem gambling in a number of different types of locations.

"It will provide an objective way of deciding the location of new casinos. It also maintains the spirit of the Bill - that local people should have the final say. Local Authorities will still be able to stop new casinos coming to their area. But where new casinos can open, Local Authorities will still have the power to ensure they get all the regeneration benefits we know these huge investments can bring."

Notes to Editors

1. A copy of the statement setting out the new policy is available: Casinos: Statement of National Policy pdf (53kb).

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