Tough controls could stall UK casino boom

A boom in UK casinos could be stalled by the Government's hardline approach to the incoming gaming laws, which place strict curbs on smaller casinos and the number of Las Vegas-style "super casinos" in the UK.

Some industry observers feared the new restrictions could deter overseas operators from investing in the UK and check the anticipated UK casino boom, hitting hospitality businesses in the pocket. The measures announced on Monday include tougher controls on gaming machines and the establishment of a new regulator, which would be able to prosecute and impose unlimited fines for licence breaches. There were also powers for local authorities to prevent new casinos opening in their area.

Hillary Stewart-Jones, a partner and gaming specialist at law firm Berwin Leighton Paisner, said overseas operators like MGM Mirage would "have to sit down and do the maths" to see if investing in the UK still added up.

"There will still be opportunities for operators to tap into - just not in the way people expected," said Stewart-Jones. "This takes gambling out of the closet and puts it into the mainstream."

Neil Richmond, head of leisure at consultant Colliers CRE, said smaller companies would be most affected, but he expected big overseas resort players to still be interested in the UK, and this was where most investment would come from. But he added that the biggest question mark was over tax liability, and this had yet to be resolved.

Tessa Jowell, Secretary of State for Culture, Media and Sport, said she intended to introduce a gambling bill later this year, and added that the Government's "cautious, incremental" approach could become more lenient.

David Abramson, director and casino specialist at leisure property agent Davis Coffer Lyons, said it was a wait-and-see policy. "The important thing is it's moving forward," he added.