28. Memorandum from Business
In Sport and Leisure (GMB 14)
INTRODUCTION
1. Business In Sport and Leisure (BISL)
is an umbrella organisation that represents over 100 private sector
companies in the sport and leisure industry. Its members include
most of the major operators of commercial sport and leisure in
the UK and many consultants who specialise in this field. Members
of BISL represent a wide range of interests in the gambling sector
and include operators of casinos, bingo, betting, pools, greyhound
and horse racing, snooker and ten pin bowling centres, pubs and
the suppliers of gaming machines. In fact as far as we are aware
BISL is the only umbrella body representing all major sectors
of the Gambling Industry.
2. BISL is responding to the Government's
conclusions on the Joint Scrutiny Committee's Report on Gambling.
In accordance with the remit of this Inquiry, BISL is confining
its comments to Sections 79, 80, 81, 83, 84, 85 and the Annex
on the Joint Statement by DCMS and ODPM on Casinos. BISL will
make a separate submission to DCMS concerning other parts of their
Response to the Scrutiny Committee Report.
SOCIAL RESPONSIBILITY
AND PROTECTION
OF THE
VULNERABLE
3. BISL fully supports the need for social
responsibility in gambling and for the most vulnerable in our
society to be protected. It is particularly important that children
are prevented from playing adult gaming machines. We are therefore
fully supportive of the measures introduced to remove Category
C machines from taxi offices and take-away premises and of other
protections to ensure that only those over the age of 18 have
access to gambling premises.
4. As we have made clear in previous submissions,
there is a clear need for a new Act of Parliament. The Gaming
Act 1968 cannot cope with the technological changes which now
affect gambling and there is a need for a new Act, if we are to
keep gambling crime free and ensure that society is protected.
CASINOS
5. DCMS has now defined casinos under four
headings: Regional, Large, Small and "Grandfathered".
BISL has always seen gambling as one of a number of leisure activities
which provide consumers with choice. BISL therefore supports the
provision of non-gambling areas not only to provide consumers
with somewhere to take a break from gambling, but also to encourage
other entertainment which is very much part of the "leisure
offer". BISL has always seen gambling as one of a number
of leisure activities which provide consumers with choice.
6. BISL can appreciate the desire to prevent
a sudden and substantial increase in the availability of high
prize gaming machines. We do however, have concerns about how
this objective will be achieved with the policy as it now stands.
We are also very concerned about the effect of the new policy
on existing British operators of casinos in the UK.
7. There is no doubt that both British and
overseas operators will be seeking to develop new "Regional"
casinos with their limit of 1,250 Category A machines. Unfortunately
as these new casinos open, customers are bound to be attracted
to visit regional casinos whether they live within a 20 to 30
minute drive time, or as a destination visitor. Just as multiplex
cinemas have led to the closure of town centre cinemas, so the
regional casinos will put the existing casinos with their limit
of 80 or 50 category B machines out of business. Since the 126
existing casinos in this country are almost entirely operated
by British companies, this new policy is very clearly acting against
their interests.
8. As the Business In Sport and Leisure
research, conducted by Ernst & Young and published in November
2003 showed, only three or four resort casinos were expected to
be developed in the UK on the basis of the Government policy at
that time. This is now likely however, to rise to approximately
30 regional casinos. There is a strong argument that the number
of Category A machines under the new policy will increase, rather
than decrease. Even if the large casinos with their total number
of machines limited to 150, were allowed to operate Category A
machines, the total number of category A machines with three or
four Resort casinos would have been less, than the total number
of Category A machines available in the UK are likely to be under
the new policy.
9. BISL suggests two possible solutions
to this problem which BISL would wish to be looked at further.
The first is that small and large casinos are allowed a limited
number of Category A machines, as a proportion of their total
number. The second is that as part of the Triennial Review of
Stakes and Prizes for gaming machines, the stake and prize for
the current category of machine which is only allowed in casinos
is increased and then provided with a "Grandfather Right".
At present the stake for machines only allowed in casinos is 50p
and the prize £2,000. In its submission to the Gaming Board
for the Triennial Review, BISL recommended that the stakes and
prizes for category B machines in casinos should rise to a £5
stake and £10,000 prize. If such changes are not made the
legislation will have the effect of making existing casinos uncompetitive
and could lead to widespread closures, with significant job losses
over a number of years.
10. The existing operators also believe
that a six year wait (two Prevalence Studies) for the first opportunity
to correct this imbalance will be too long given regional casino
opening in 2006-7.
11. Whilst the Scrutiny Committee does not
have a remit to look at paragraph 40, BISL would like to note
its concerns about the proposals to provide new safeguards for
gaming machines as follows:
— To control speed of play.
— To control game design features such
as near misses which may reinforce incentives to repeat play.
— To require information about odds
and actual wins or losses to be displayed on screen.
— To require reality checks or the
need to confirm continuing play.
— To implement loss limits set by players
before starting using smart card technology.
— To vary stake and prize limits.
12. Whilst BISL fully appreciates the need
to protect consumers and the vulnerable, it is important that
the industry is involved at an early stage in discussions around
the provision of these safeguards and that the industry as a whole
is fully informed and consulted at an early stage of how these
safeguards will work in practice. Changes in these areas could
have a dramatic effect on the viability of gaming machines of
all types.
PLANNING
13. The joint ODPM and DCMS Statement on
planning contained in an Annex to the Government's response to
the Scrutiny Committee, gives more detail of how planning policy
will work. BISL has the following concerns about this policy:
DOUBLE JEOPARDY
14. BISL is not convinced that the same
issues should be considered under appeals against planning or
licensing. If issues have already been dealt with at outline planning
and full planning permission is granted, the same issues should
not be visited again when the premises licence is granted. Quite
apart from the burden of this work on the local authority system
of this work, we do believe that it seems totally unfair for local
authorities to make one decision on planning and another possibly
contradictory decision when a premises licences is granted.
REGIONAL SPATIAL
STRATEGIES (RSS)
15. Clarification is needed about what type
of casino development will be covered by Regional Spatial Strategies.
From reading the Government's response, it would seem that the
new RSS will only deal with regional casinos, but the penultimate
paragraph of the Annex then suggests that "New large casinos
will be located in the most appropriate places in terms of their
tourism and regenerative potential." This would suggest that
the new RSS will also cover large as well as regional casinos.
16. London is the only region with a Regional
Spatial Strategy, but this does not include any policy on large
leisure developments. It would seem sensible for the Government
to encourage London and all other Regions whose RSS will be established
under the Compulsory Purchase and Planning Act 2004, to draft
a criteria based interim policy which will be a material consideration
in planning terms. This should reduce the requirement for call
in by ODPM.
17. BISL is concerned and disappointed that
local authorities have been given a veto on casino developments.
This is the first time, as far as we are aware, that local authorities
have been given these powers under planning guidance, with the
exception of sex establishments. BISL believes that vetoes in
one area will inevitably lead to the migration of people who wish
to gamble for one local authority area to another.
18. It is suggested that PPS 6 (Planning
for Town Centres) which is currently in a draft form will provide
guidance on casinos. BISL has been very much involved in responding
to ODPM on PPS 6 on behalf of the leisure and hospitality industry.
In its current form the only mention of casinos appears at paragraph
1.7 where the main types of development and land uses to which
the policy applies includes casinos. BISL would like to see a
description of casinos included in Annex A: (Glossary) which defines
regional casinos and what is considered to be of regional significance,
in the same way the guidance does for shopping centres.
IN CONCLUSION
19. BISL believes that this legislation
should be taken forward as soon as possible. If Parliamentary
time is not found this autumn, legislation could be delayed by
a General Election and other legislation considered to be of greater
priority for a number of years. There are opportunities under
the draft Gambling Bill for the gambling industry to expand and
offer consumers greater choice for their leisure time. This will
take a number of years, but will also ensure that consumers and
the vulnerable are protected.
20. Business In Sport and Leisure would
be happy to give oral evidence to the Committee if time permits.
July 2004
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