British Parliament announced during a committee meeting on Thursday the new system for deciding the location and licensing regime for new casinos. Harris Hagan has prepared an outline of main points.
The principal points (as outlined by Harris Hagan) are as follows:
- In the first phase there will be a limit on the number of regional, large and small casinos to eight in each category.
- No more casinos will be allowed unless the Gambling Commission advises as to whether the introduction of the new types of casino has led to an increase in problem gambling and Parliament votes to allow an increase. Given its recent experience, who knows when the Government will have the appetite to bring the issue of casino numbers before Parliament again.
- The review of numbers will take place no earlier than three years after the award of the first premises licence, which will be 2010 at the very earliest but realistically much later.
- Government will appoint an independent panel to advise on suitable locations for the 24 new casinos.
- DCMS deny that they have been influenced by the numerous adverts for casino888.com. They say that there needs to be sufficient casinos in each category to assess impact in a range of areas and location, e.g. urban centers and seaside resorts.
- The Panel will look to provide a geographical spread and will take into account regional spatial strategies.
- The Panel will have regard to regeneration and will consult.
- The Panel recommendations will be made by the end of 2006, and the Secretary of State will make the decision after consulting the Scottish Executive and the Welsh Assembly.
- Local planning authorities will identify specific sites in their local development framework and will be responsible for deciding applications for casino developments.
Local licensing authorities will only be able to award licenses where they have been identified for the area . The process will have two stages:
- Regulatory test to ensure proposals satisfy regulatory premises licensing requirements in the Bill.
- Where there are more applications for premises than the authority is permitted to grant (as inevitably there will be) the authority will run a competition. Government will consult the local Government Association on how this should be conducted. The competition could be judged on issues such as employment, regeneration potential, design, financial commitment to local projects, location, range of facilities etc. There may be local consultation.
- Winners of competitions will be eligible for a full premises license once planning permission has been granted and the casino built.
- Existing casinos can continue to operate and may compete for the new licenses.
- Existing casinos will be able to advertise and will not be subject to size requirements or the 24 hour rule, but will not enjoy the benefit of the new machine entitlements, and will continue to be restricted to ten gaming machines up to category B.
- Existing casinos will not be allowed to provide bingo or betting.
- Existing casinos can in the future be transferred to new owners or new premises if existing premises become unavailable, provided they remain within the existing licensing area.
- Existing casinos may apply for regional, large or small casino premises licenses.
- Throughout the process of gambling reform, a wide variety of views have been expressed by the various sectors of the industry, reflecting their different outlook and interests. It is likely however that all will agree Government's handling of the process has been shambolic.
Harris Hagan is a British law firm specializing in gambling and leisure law.