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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