Foreign investors set to score

NO PARITY FOR UK COMPANIES

It seems that a level playing-field for the casino industry in the UK is to be ruled out.

Pressures on the Department of Culture, Media and Sport make it unlikely that British gaming industry companies will be able to compete for the lucrative slot machine market when deregulation finally arrives.

The big international groups such as Kerzner International will together bring an estimated £5 billion investment into around 40 casino projects already planned for the UK. It will be these big companies that are able to profit most from deregulation if the huge jackpot category A machines, so popular in the US and other regions of the world, are limited to the Las Vegas style casino complexes in Britain.

The recommendations of a cross-party committee of MPs to allow the present British operators the same revenue opportunities appear set to being ignored by Tessa Jowell, Secretary of State for Culture, Media and Sport, on the grounds that the government is concerned about problem gambling and wishes to be able to monitor the affects of deregulation.

If the bumper payout slot machines are limited to properties with at least 50,000 sq ft of gaming floor then most UK operations will be left outside.

Aspinalls has already gone into partnership with the Australian magnate Kerry Packer and their company Aspers has projects in Swansea, Newcastle and Birmingham. Maybe other UK companies will be looking for international partners with more financial resources to develop large casinos, but perhaps the international operators will just wait and swallow the smaller fish.

© Copyright 2004 CasinoCompendium



>>> return to archives
>>> return to frontpage