Monday, February 21, 2005
U.K. Government to Push Ahead With Gambling Bill Casinos Oppose
Feb. 20 (Bloomberg) -- U.K. Prime Minister Tony Blair's government will push ahead with legislation aimed at relaxing gambling laws, changes the British Casino Association says would cost jobs and investment.
The Department of Culture, Media & Sport said Lord Andrew McIntosh, the U.K.'s gambling minister, will debate the matter in the upper chamber of parliament on Feb. 22, dismissing a story in the Independent on Sunday saying the matter would be dropped.
``We are determined that this bill will reach the statute book and become law as soon as possible,'' the department said in a statement released in London today.
The British Casino Association, which represents Rank Group Plc, Gala Group Ltd. and Stanley Leisure Plc, stepped up its objections to the bill, publishing advertisements in newspapers including the Sunday Times opposing the proposed law.
The industry is concerned that the legislation would open the way for eight new Las Vegas-style casinos with slot machines offering unlimited jackpots while restricting the expansion of smaller and medium-sized gaming parlors. The measures would limit the size of the U.K. industry, which currently generates $11.5 billion in revenue and employs 100,000, the lobby says.
``We simply cannot fathom why the government has chosen to experiment with a large increase in the number of gaming machines and the provision of bookmaking services in new casinos while restricting our members from participating in these profound changes to gambling regulation,'' Penny Cobham, chairman of the BCA, said in a statement on Feb. 14.
Second Reading
Lawmakers in the House of Lords must consider the matter and win the House of Commons' approval for amendments before the bill can become law. The bill would be dropped if it fails to clear both houses before parliament is dissolved for the next general election, which may come in the middle of this year.
The Lords will give the bill its second reading on Feb. 22, giving members of the house a chance to express opinions on the matter. The legislation then will be amended by committees of lawmakers before returning to the Lords for a final reading. The House of Commons must agree those amendments with the Lords before the matter can be sent for royal assent from Queen Elizabeth II.
The bill would allow 24 new casinos in addition to the 134 now operating in the U.K. It will allow eight ``super-casinos'' of the kind operated by U.S. companies including Caesars Entertainment Inc. and MGM Mirage. It restricts the number of medium and small casinos, operated by companies such as Rank and Gala, after an amendment by Culture Secretary Tessa Jowell.
Casinos' Concerns
The Independent on Sunday quoted one unidentified ``senior Whitehall source'' as saying the British Casino Association's lobbying risks that the government may drop the matter rather than risk stirring up debate around the election.
The House of Lords, the upper chamber of parliament, will consider the matter on Feb. 22 after the bill cleared the House of Commons on Jan. 24. The bill would be dropped if it remains with lawmakers when Blair dissolves Parliament for the next election, which may come in mid-2005.
British companies are concerned the rules would curtail expansion of their casinos while investors from abroad could press forward with their own plans. Caesars said on Jan. 21 that it would move ahead with building a 320 million pound ($600 million) casino in Wembley, the north London suburb that's home to England's new national soccer stadium.
Blair's government proposed the law as a way of overhauling the nation's 37-year-old gambling rules, allowing a controlled expansion of the industry to regenerate seaside resorts such as Blackpool and Bournemouth.
``The Gambling Bill is currently going through its stages in Parliament,'' the Department of Culture, Media & Sport said today. ``It has been the subject of nearly five years of debate and consultation and provides up-to-date regulation and public protection in an industry growing at an ever faster rate.''
