Meeting documents

Cabinet
Wednesday, 7th December, 2005

APPENDIX 1 - Gambling Act 2005 and Casinos - Background Information

1. Gambling Act 2005

1.1 The Gambling Act 2005 allows for a controlled increase in the number of casinos in Great Britain. The following numbers of types of casino will be permitted although the Secretary of State may amend these numbers by Regulations under Section 175.

One Regional casino which will have a minimum total customer area of 5,000m2 and be permitted up to 1,250 Category A unlimited jackpot gaming machines (ie unlimited stakes and prizes)

Eight large casinos which will have a minimum total customer area of 1,500m2 and be permitted up to 150 Category B1 gaming machines (ie with a maximum jackpot of£4,000).

Eight small casinos which will have minimum total customer area of 750m2 and be permitted up to 80 Category B1 gaming machines.

All existing casinos

1.2 The one regional and eight large casinos will be permitted to offer bingo and all three categories will be permitted to offer betting.

1.3 The independent panel that will advise the Government on the areas in which the new types of casino will be located was appointed on 30th September 2005 and will report by the end of 2006. Based on the Panel's advice, the Secretary of State for Culture, Media and Sport will specify the areas for the 17 new casinos in a Parliamentary order at the beginning of 2007. This order will require the approval of Parliament.

1.4 The Panel will begin their work by inviting expressions of interest from Local Authorities. Local Authorities unwilling to license a new casino will not be considered.

1.5 The primary consideration of the Panel will be to ensure that the areas identified satisfy the need for the `best possible test of social impact'. According to the Statement of National Policy, the panel will be seeking:-

a good range of types of areas

a good geographical spread of areas across Britain

areas in need of economic development and regeneration (as measured by employment and other social deprivation factors) and likely to benefit in regeneration terms from a casino

1.6 They will also take into account the potential for regeneration in the areas. The Regional Planning Bodies in England will be asked to identify a broad list of locations for the regional casino.

1.7 Once Parliament has approved the areas for the new casinos the relevant Local Authorities will be able to run competitions for the new casino premises licences. The Secretary of State will issue a code of practice concerning the conduct of these competitions before they begin.

1.8 Should Bath and North East Somerset be chosen, operators licensed by the Gambling Commission may set up a new casino if the Council as licensing authority grant a premises licence and necessary planning approval is obtained.

2. The role of Local Authorities under the new Act

2.1 The Gambling Commission will be responsible for granting operating and personal licences for commercial gambling operators and personnel working in the industry. The Council as a licensing authority will have new powers to license gambling premises within its area as well as undertaking functions in relation to lower stake gaming machines and clubs etc. There will be a new system enabling premises not normally licensed to be used for certain types of gambling for a limited period. There will also be a new regime for lotteries. These powers and functions cannot be the responsibility of the Council Executive and will therefore be dealt with by the full Council or the Licensing Act 2003 Committee.

2.2 The Council can express interest to the Government/independent Advisory Panel on having a casino in Bath and North East Somerset.

2.3 If the Government decides that one or more casinos may be located in Bath and North East Somerset, it may consider whether it might be appropriate to use its well-being powers to establish and operate a casino. This would be a matter for the Council to consider. A power is provided for licensing authorities to pass resolutions not to licence any new casino premises in their area.

3. Facts on the British Casino Industry

There are currently 138 casinos in Britain with 1,500,000 members. (The new Act will remove the current rule that states members must wait 24 hours from applying for membership before being able to use the casino facilities.)

The average spend is £45 per visit

Membership is 70% male and 30% female

The socio demographic is mainly B, C1 and C2

4. Bath and North East Somerset

4.1 There are currently no casinos in Bath and North East Somerset. Consideration of the potential for provision of a casino would be based upon its potential to contribute to regeneration and economic development. Social, environmental and other impacts would need to be considered and due regard paid to the potential negative social impact (eg addiction, protecting children etc), should the proposal be taken forward.

4.2 Key issues would be the size, nature and location of any casino. If provision of a casino were to be considered to offer significant potential benefits, Bath is likely to be the most appropriate location. Across Europe and beyond, there are examples of integration of casinos within spa towns and any further work would explore these more fully.

4.3 It would need to be established that provision of a casino could help fulfil the emerging vision for the future of Bath, through expansion and diversification of the visitor offer etc and accord with planning policies in the Regional Planning Guidance and the Local Plan. Particularly relevant policy objectives are those which seek to enhance Bath's economy and its role as a centre for cultural activities whilst at the same time ensuring a high quality of design and conservation of Bath's distinctive character.

4.4 To achieve this, it is likely that any casino in the City would need to be high quality, prestigious and small to medium in size. Consideration would need to be given to whether the casino industry could deliver an operation appropriate to the World Heritage City of Bath.

4.5 Proposed next steps would involve submitting an initial expression of interest to the Government/Advisory Panel and investigating further the pros and cons for Bath and North East Somerset.