High rollers gamble on gaming laws: case study two

Sipping coffee beside the roaring fire in his Sloane Street offices, Damian Aspinall typifies the refined understatement of the English casino world. And Aspinalls, the central London casino opened by his father in 1962, is emblematic of this ethos.

But Aspinall is set to become much bigger and bolder as he launches his Aspers casino brand with gusto on the casino market.

With the help of his financial backers - the Australian Packer family - he is already steaming ahead with plans to open a 150,000 sq ft establishment at Land Securities' Newcastle leisure complex, The Gate. A large casino operator had previously rejected the site, but Aspinall sees the premises as a "fantastic project", made all the more attractive by being on the edge of the city's Chinatown.

But, says Aspinall, the casino will appeal to all demographics. It is getting a £10m fit-out and will open in November this year. His confidence stems from the fact that the project is not so much a casino as an entertainment complex. "Gambling will only make up 30% of the offer," he says.

Aspinall, who runs three casinos in Australia and New Zealand with the Packer family, admits that "nobody knows yet what will work here". Four more entertainment complexes ranging from 50,000 sq ft to 60,000 sq ft are already close to signing, "We have signed the 150,000 sq ft project, and we are close to signing another two or three," says Aspinall. When asked about the American invasion he shrugs his shoulders and says it is an open market. But, he warns: "If it's a completely free market, there's a danger of oversupply."

As Aspinall says: "There is a possibility that tax rates could be high in which case foreign investors would be unlikely to come to the UK in any great numbers. However I still believe there will be a good demand for casino space and consequently rents may rise.

"There is an equally strong argument that there could be an over supply of casino's in which case rents would collapse. In dealing with rent reviews my preferred option is a fixed linked annual increase which leaves the landlord certain of rental growth and the operator protected from volatile rental rates."

Turning to South Africa and Australia, both of which saw deregulation, Aspinall says: "Any country which has seen deregulation has been a great success."