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The US invasion
The UK is primed for a casino-building boom that will bring to the hospitality sector a flood of inward investment, jobs and joint-venture opportunities. As the Government prepares to deregulate our antiquated gambling laws, casino operators, developers and local hoteliers are rubbing their hands in anticipation.

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	A new way of gambling could be on its way by the end of this year, and it will mean deregulation of UK casinos. There will be plenty of opportunities for hotels - and plenty of career opportunities too.

The UK's casino industry is forecast to grow from £669m in 2003 to £2.5b by 2009, according to a recent report from professional services firm KPMG for the British Beer and Pubs Association. Over the past 12 months UK casino operators such as Stanley Leisure and Gala Group Holdings have been preparing for deregulation. And US operators including Kerzner International and MGM Mirage, which operates the Bellagio and MGM Grand casinos in Las Vegas, are falling over themselves to get in on the action by signing partnerships and acquiring UK properties (see box, right). At present, casinos in the UK are strictly regulated under the 1968 Gaming Act. They are required to operate as private members clubs, they can operate only in 53 "permitted areas", and their licences are controlled by local authorities. The result, according to David Abramson, director and casino specialist at leisure property agency Davis Coffer Lyons, is that less than 5% of the population uses a casino, which means there's a large untapped market for the operators to exploit. He foresees a period of "frenetic" activity. The British Casino Association (BCA), which represents the operators of more than 90% of the UK's 126 casinos, believes deregulation could be a shot in the arm for the hotel industry. It could also create the kind of venues needed to attract international conferences. The BCA points to Las Vegas, which has more hotel bedrooms than the whole of London and raises most of its turnover from non-gambling activities. The Government hopes casinos will play a significant part in the regeneration of areas such as Blackpool, where Pleasure Beach owner Geoffrey Thomson and leisure entrepreneur Trevor Hemmings both intend to cash in on the boom. Hemmings has long held a dream of opening gambling resorts in Blackpool, and has plans for an Egyptian-themed, super-casino complex. Such plans would bring new hotels to the area, as well as franchise and management opportunities, and there would be more hospitality jobs and increased business for existing operators. One UK hotel operator paying close attention to developments is Hilton Group, which owns gambling chain Ladbrokes. Wolfgang Neumann, president of Hilton UK & Ireland, says: "Until the Government can determine a clear definition for resort casinos, Hilton is unable to say whether we would pursue them further, although we are closely monitoring how the issue develops." Casinos are most often associated with four- or five-star hotels and glitzy resorts, but the best bet could well be at the lower end. "There is an opportunity for budget players without a shadow of a doubt," says Neil Richmond, head of leisure at property agent Colliers CRE. "The big players such as Kerzner will want budget accommodation nearby. And there's bound to be spill-over trade." Just how big the casino boom turns out to be - and how many new hotels and room nights it creates - remains to be seen. The BCA believes a lot of the forecasts are "vastly inflated" and shares the Gaming Board's view that, post-deregulation, there will be between 240 and 250 casinos in he UK. Richmond says that over the past 10 years the historically strong link between casinos and hotels in the UK has weakened; the trend now is for new-build casinos disassociated with hotels. Big resorts aside, he expects this trend to continue, with most new projects being stand-alone new-build sites. Much hangs on the form the legislation will take. All eyes are on the Government since Secretary of State for Culture, Media and Sport Tessa Jowell revealed on Monday that the Gambling Bill could be introduced later this year. The Government has tightened up its former liberal approach, backing measures such as tough controls on gaming machines, powers for local authorities to prevent new casinos opening in their area, and limits on the number of Las Vegas-style super-casinos. But Abramson believes there is still little to deter the large overseas players. And that's good news for hospitality firms as these kinds of operations will generate the most opportunities for local tourism and hospitality. The path ahead remains unclear, and the biggest issue for operators - tax - has yet to be thrashed out. But Tourism Minister Richard Caborn acknowledges that deregulating and modernising the UK gambling industry could create a major tool for economic regeneration. Deregulation has been proven to work in other countries, such as Australia and South Africa, and the Government is only too aware of the scale of investment that will be lost to the UK - and the Treasury's coffers - if it does not rise to the casino challenge here. Only a brave gambler would bet against the casino boom hitting the UK. n - Kerzner International has been given the green light by the UK Gaming Board to open a 10,000sq m casino in Northampton and has signed an agreement in principle to build a casino and resort hotel at London's Millennium Dome. - Harrah's Entertainment has signed a joint venture with UK firm Gala Group Holdings and plans to develop eight casinos in this country, some including hotels. Harrah's also plans to open several casinos of its own, each with a hotel, in London and Blackpool, among other locations. - Isle of Capri Casinos, the Mississippi-based riverboat operator, has acquired a two-thirds stake in UK casino developer Blue Chip Casinos and plans to build a resort development next to Coventry City's new football stadium. - Las Vegas Sands, owner of Las Vegas casino the Venetian, has hired UK property agency Jones Lang LaSalle to help it identify opportunities in this country. It intends to build a leisure and entertainment complex, including a casino, hotel and restaurants, next to Glasgow Rangers' Ibrox stadium. And it plans to build a casino and entertainment complex, complete with 120-bedroom hotel, near Sheffield United's Bramall Lane stadium. - A consortium known as BLB Investors, which includes casino operator Kerzner and property investment firm Starwood Capital, owns 22% of Wembley Plc and has put in a bid for the rest of the company. Wembley has six greyhound tracks in the UK offering potential for further gambling facilities. - MGM Mirage is without doubt the biggest mover and shaker. So far the company has acquired a 25% share in Metro Casinos, a division of UK casino firm RJ Bown Holding, which is building a casino in Bristol. It has entered into a joint venture with the Earls Court and Olympia Group company to build a casino and entertainment complex at London's Olympia exhibition centre. It has signed a deal with British Land to build a leisure complex, including casino, hotel and restaurants, next to the Meadowhall shopping centre in Sheffield. And it has signed a strategic alliance with Manchester-based property developer Peel Holdings to develop casino projects totalling £650m in Manchester, Salford, Glasgow and Liverpool.