Joint Committee on the Draft Gambling Bill Written Evidence


Memorandum from the Hilton Group Plc (DGB 42)

  I am delighted to outline to the PLS Committee a short submission from Hilton Group Plc.

  Hilton Group plc is a leader in the leisure and hospitality sector, with interests in hotels, health clubs, and a range of UK regulated betting and gaming services. With a market capitalisation of £3.5 billion and BBB plus credit rating with Fitch, the Group owns a portfolio of world-class brands including Hilton and Ladbrokes, the world's biggest bookmaker. We currently employ 77,000 people across more than 77 countries worldwide with further developments planned across the Group. Training and investing in our employees is a key part of both our business practice and our corporate culture. In 2001 Hilton UK and Ireland launched an award winning Vocational Qualification programme and Ladbrokes have been awarded with Investors in People since 1998.

  I am aware that Ladbrokes and its trade body, the Association of British Bookmakers have also submitted a paper on the bookmaking business; this letter focuses exclusively on the proposal to establish resort casinos.

  My Board colleagues and I welcome the Government's plans to modernise and update Gambling laws and applaud the process that both the Government and the PLS Committee are going through to canvass a broad range of views. We bring extensive experience of the casino business, having previously operated throughout the UK until 2000 when we decided to sell that particular business. We would, however, be interested to enter the resort-casino market which is a logical extension of our combined hotel and betting business. It would also serve to fully exploit our unique property portfolio in Blackpool, Brighton and London to name but three. Therefore we are pleased to have the opportunity to outline some thoughts in this regard.

  There has been much debate, interest and excitement over the proposals concerning resort casinos and this is well documented. Despite this we would urge a degree of caution. As the Government has outlined elsewhere it is important that a controlled and sensible approach is adopted towards deregulation in order to maintain and control problem gambling and proliferation. This should be a priority for the industry not just the Government. That said, there are, as the Government has outlined, wider economic benefits to the development of resort casinos which should not go unrecognised.

  The Hilton Group plc encompassing both Hilton Hotels and Ladbrokes Worldwide offers a unique proposition to the UK market through its combination of experience and brand leadership in the areas of hospitality, leisure and betting.

  As a major employer we are pleased that the proposal to develop resort casinos is seen as being paramount to wider economic regeneration, in order to create local jobs and attract investment. We note that the Government has outlined two definitions for the size of casinos, at 5,000 and 10,000 square feet. Whilst we support these definitions we believe that 10,000 square ft is too small and could result in an increase in the number of resort casinos which in turn could end up causing a number of social problems.

  There will be cases where resort casinos could bring much needed economic regeneration and it is apparent that there are a number of places around the country where this would be welcomed. It is important therefore that regeneration is evenly split and that where it is identified it is welcomed into the local community and not imposed.

  To conclude, I am pleased to have been able to briefly outline some thoughts regarding the proposed development of resort casinos which we fully support. We will do what we can to meet the standards you set and will also encourage the rest of the industry to follow.

  Hilton Group would, of course, be delighted to provide the Committee with further information and give oral evidence if that is helpful.

December 2003


 
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