Industry News

New Casino Process gathers pace.

The legislation finally approving the locations for eight new “small” and eight new “large” casinos has been passed so the complex process of awarding licenses can begin.

Industry sources predict that not all of the designated local authorities will receive bids, given the difficult current market conditions. Meanwhile, the BCA as well as some disappointed local authorities such as Blackpool would like to see unwanted licenses in some areas transferred to more attractive locations.

The DCMS is said to be sympathetic to this suggestion, although it would require possibly contentious secondary legislation, and would involve overturning the basic findings of the Casino Advisory Panel. This may represent a legislative risk which the current government would not see as worthwhile.

In the meantime, there are reports of at least one existing certificate of consent being abandoned in an area selected for a new casino, and an existing casino which faces closure due to lack of sufficient business, even though it is also in an area eligible to license new casino.

As the result of abandoning the “market test” as one of the criteria for selection of locations for the new casinos, many of the locations chosen are in areas already well served by existing casinos, or in places clearly incapable of supporting a major new gambling venue.

Nevertheless, there are still some jewels hidden in the crown for smart operators to take advantage of, where competition for the new casino licenses is likely to be intense.