Gambling

Supplementary written evidence submitted by Casino Operators Association UK (GA 106)

In light of the fact that we were not invited to give oral evidence to your inquiry into the implementation and subsequent operation of the Gambling Act 2005 and, having listened to and studied the representations made to your committee by the casino industry members who were asked to appear, I have commissioned a short desktop study in an attempt to understand why the oral evidence given was, to say the least, unhelpful and why it had little bearing on the real issues affecting a once vibrant sector. I would like to add the findings to our previous written submission.

The study produced the following summary of the most recently published profit and loss figures of NCiF members which sheds light on a possible explanation as to their motive for putting forward such ill-considered proposals as the portability of casino licences and allowing 24 hour gambling to continue and expand:

CASINO

OPERATOR

FINANCIAL
YEAR

PROFIT AFTER
TAX

LOSS

Casino at Empire
London

LCI (Harrahs)

2010

£6,104,000

Golden Nugget
London

LCI (Harrahs)

2010

(£814,000)

Playboy Club
London

LCI (Harrahs)

2010

(£5,613,000)

Sportsman Club
London

LCI (Harrahs)

2010

£1,729,000

Alea Casino
Nottingham

LCI (Harrahs)

2010

(£1,013,000)

Alea Casino
Glasgow

LCI (Harrahs)

2010

(£1,188,000)

Alea Casino
Leeds

LCI (Harrahs)

2010

(£1,553,000)

Casino 235
Manchester

LCI (Harrahs)

2010

(£996,000)

Rendezvous
Brighton

LCI (Harrahs)

2010

(£1,265,000)

Rendezvous
Southend

LCI (Harrahs)

2010

(£641,000)

Aspinalls Club
London

Aspinalls

2010

£486,000

Aspers
Newcastle

Aspers

2010

£932,000

Aspers
Northampton

Aspers

2010

(£594,000)

Aspers
Swansea

Aspers

2010

(£2,439,000)

Aspers Group Ltd.

2010

(£5,708,000)

The Clermont Club

Clermont Leisure
Ltd.

2011

£5,356,000

Les Ambassadeurs
Casino

Les Ambassadeurs

2011

(£4,712,000)

Gala Casinos
(28 casinos)

Gala Coral

2010

(£47,101,000)

Genting UK
(46 casinos)

Genting

2010

(£17,100,000)

Opera House
Scarborough

Nickolas Shaw Ltd.

2010

(f50,394)

Rank Casinos
(37 casinos)

Rank Group Ltd.

2010

£31,852,000

Hippodrome
London

Hippodrome
Casinos

Not Open

Never operated a
casino

TOTALS

£46,459,000

(£75,397,394)

This frightening list shows the real state of affairs of those in our industry who are calling for further destabilising changes. Without Rank's VAT rebate enriched coffers, the NCiF would be showing a net loss of around £60,000,000 for the year 2010.

In addition, Harrahs (UK) and Genting (UK) are both tiny subsidiaries of enormous overseas conglomerates for whom losses amounting to millions in their UK divisions are insignificant compared to the figures in their overall balance sheets. For this reason, short term "tweaks" to local regulation - without any concern for their long term effects on the rest of the industry - are very attractive to these companies.

Mr. Chairman, I feel that the above comments are apposite to your inquiry and in light of this additional information, if you or any member of your committee would like to discuss these figures further, or any aspect of the Gambling Act Review, I would be more than happy to oblige. I have enclosed a copy of this Association's initial response to your committee for your convenience

March 2012

Prepared 30th March 2012