APPENDIX 1: GOVERNMENT STATEMENT OF NATIONAL
POLICY
1. This statement is issued on behalf of Her Majesty's
Government.
2. The Government's policy on casinos is based on
the three broad objectives of the Gambling Bill:
- To protect children and other
vulnerable people from harm;
- To prevent gambling being a source of crime or
disorder and;
- To ensure that gambling is conducted in a fair
and open way.
Britain has a low level of problem gambling compared
to other countries (less than 1% of the population) and the Government
is committed to maintaining this record. Casinos are already tightly
regulated and have strict controls in place. The Gambling Bill
will strengthen the existing safeguards. There are currently a
number of regulations, however, which the Government believe are
outdated. The 24-hour rule, the ban on advertising and the permitted
areas rule unnecessarily restrict customer choice and discourage
investment and economic regeneration. The tourism and leisure
industries are increasingly significant elements of the economy.
3. Tourism alone accounts for 4.4% of our GDP. The
Government believes that the casino proposals in the Bill, with
its emphasis on increased regulation, have the potential to make
a positive contribution to the success of these sectors. In addition
Regional casinos, as major developments, offer clear potential
for regeneration of areas across Britain. They will provide not
just a range of gambling activities, but may include hotel accommodation,
conference facilities, restaurants, bars, areas for live entertainment
and other leisure attractions. The benefits of such a development
could go much wider than the location of the casino itself. There
are many parts of the country which could benefit from the regeneration
that these kinds of leisure developments can offer.
4. The Government recognises, however, that the casino
proposals in the Bill represent a significant change and we need
to take a cautious approach in order to assess whether their introduction
leads to an increase in problem gambling. The Government has taken
the view that the risk of an increase in problem gambling will
be reduced if a limit is imposed on the number of casinos. We
have therefore decided to set an initial limit on the number of
Regional, Large and Small casinos of 8 each. The identification
of operators and locations for the new casinos will be subject
to broadly the same arrangements in each case.
5. The Government believes that, in order properly
to assess the impact of these new casinos, there needs to be a
sufficient number of casinos in each category to allow the impacts
to be assessed in a range of areas and types of location that
might be suitable (including, for example, urban centres and seaside
resorts across different parts of the Britain). A limit on Regional,
Large and Small casinos of 8 each is consistent with this aim
while at the same time ensuring that any risk of problem gambling
is minimised. The Government has decided to appoint an independent
Advisory Panel to recommend the areas for the Regional, Large
and Small casinos. Following the Panel's advice the Government
will decide the areas where each of the new casinos may be licensed.
6. Once an assessment has been made of the impact
on problem gambling of the limited number of new casinos, it will
be easier to judge the continuing need for a limit. No earlier
than three years after the award of the first premises licence,
the Government will ask the Gambling Commission to advise on whether
the introduction of the new types of casinos has led to an increase
in problem gambling or is increasing that risk. We believe such
a period is necessary to ensure a full assessment can be made
of the impact of the new casinos. If the Government, on the basis
of the Gambling Commission's advice decides to propose that more
casinos may be licensed then the Order providing for this will
need to be approved by Parliament. We will also want to assess,
with the help of regional bodies, what the regeneration and other
economic outcomes have been.
7. This policy statement sets out our policy on casinos
in more detail below, including the role of the Advisory Panel
in recommending areas for the new casinos and arrangements for
casinos which already have a licence under the Gaming Act 1968.
The proposals for casinos outlined here are for England, Scotland
and Wales. Responsibility for the planning system in Scotland
and Wales is for their respective devolved administrations. None
of the proposals here will affect the ability of local authorities
to refuse to have a new casino of any size category in their area.
The Advisory Panel on new casino locations
8. The Secretary of State for Culture, Media and
Sport will appoint an independent Advisory Panel to advise her
on the areas in which the new casinos should be located. The Panel
will collectively have knowledge and expertise in a range of matters
including planning, securing regeneration, tourism and addressing
the social impacts of gambling. Clearly, all Panel members must
be able to demonstrate independence from any potential interested
parties and must have an appreciation of the need for impartiality.
9. In order to ensure that the impact of the new
casinos can be assessed on the basis of a broad range of information
and experience, the Advisory Panel will be asked to identify areas
for the new casinos which will provide:
- a good range of types of areas,
and a good geographical spread of areas across Britain;
- The Panel will also want to ensure that those
areas selected are willing to license a new casino.
Subject to these criteria, the Panel will be asked
to choose areas in need of economic development and regeneration
(as measured by employment and other social deprivation factors)
and likely to benefit in regeneration terms from a casino.
10. The Advisory Panel will invite views from interested
parties. In taking forward its work it will in particular invite
the Regional Planning Bodies in England to identify a list of
broad locations for Regional casinos emerging from their work
on the Regional Spatial Strategies. Before the Advisory Panel
finalises its recommendations on areas for Regional casinos it
will need to ensure that these areas are compatible with the broad
locations identified in England in Regional Spatial Strategies
or in any draft revisions of Regional Spatial Strategies before
the First Secretary of State.
11. The Advisory Panel will be asked to offer Ministers
a list of up to 8 recommended areas for each of the three categories
of casino. The Secretary of State will consider the Panel's recommendations.
After consulting the Scottish Executive and the Welsh Assembly
Government, the Secretary of State will then decide which areas
to designate.
12. The Panel will be able to begin its work in the
course of 2006, taking account of views put forward to Regional
Planning Bodies as they progress the preparation of revisions
of Regional Spatial Strategies, and of local authorities as appropriate.
We do not expect it to complete its work before the end of 2006.
Planning for casinos
13. In England, Regional Planning Bodies as part
of their revision of Regional Spatial Strategies will need to
consider possible broad locations for Regional casinos within
their region. Their proposals will then feed into the recommendations
of areas for the initial eight Regional casinos by the Advisory
Panel. In revising their Regional Spatial Strategies, Regional
Planning Bodies need to take into account national planning policy
guidance. Planning Policy Guidance Note 6 "Planning for Town
Centres and Retail Developments"/ draft Planning Policy Statement
6 "Planning for Town Centres", Planning Policy Guidance
Note 13: "Transport" and the two joint statements already
provide a comprehensive policy framework for casino development.
14. The Government does not consider that a separate
national planning policy statement on casinos is required. However,
it will consider whether there needs to be further clarification
or development of its planning policy in respect of casinos in
particular, in finalising PPS6.
15. For all three categories of casinos, the identification
of specific sites will be for local planning authorities in their
local development framework, having regard to national policy
and the Regional Spatial Strategy. Local planning authorities
will also be responsible for deciding applications for casino
developments.
16. Operators will be required to apply for planning
permission in the usual way and all applications will be considered
on their merits in line with national and local planning policies.
Applications may come forward at any stage. Decisions on whether
they should be called in for decision by the First Secretary of
State will be made in light of the Government's call-in policy
and the particular circumstances of the case.
17. It will be for the devolved administrations to
decide to what extent these considerations should apply to them.
The operating licence
18. The Gambling Commission will award operating
licences to companies on the basis of the usual licensing criteria,
but incorporating an additionally stringent test of social responsibility
to reflect the fact that Regional, Large and Small casinos will
present hitherto untested risks of social harm. Therefore, operators
will need to demonstrate a commitment to: ensuring effective measures
for reducing the risks posed to vulnerable people by casino gambling
products and the environment in which they are supplied, and making
available information, advice and assistance to people using the
casino who may be affected by problems related to gambling. The
Commission will take account of the fact that greater commitment
and resources is likely to be needed in the case of Regional casinos
because of the greater risk they pose, particularly because of
the availability of Category A machines. There will be no limit
on the number of operating licences that may be granted.
The premises licence
19. A local licensing authority will only be able
to award a casino premises licence if one has been identified
for its area. The process for awarding a premises licence will
be open to all operators. It will have two stages. The first stage
will be a regulatory test to ensure that all proposals satisfy
the regulatory premises licensing requirements already in the
Bill. The second stage will be triggered where there are more
applications for casino premises licences than the local licensing
authority is permitted to grant.
20. The second stage of the process will be a competition
held by the local authority on the wider casino proposal. We will
consult with the Local Government Association and others on how
the competition should be conducted. The competition could be
judged on a wide range of issues, reflecting the issues that are
important in the local area, local concerns and priorities. These
may include, for example, employment and regeneration potential,
the design of the proposed development, financial commitments
by the developer to local projects, location, range of facilities
and other matters. The local authority may wish to provide an
opportunity for consultation with local people. The local authority
would set out its priorities and concerns in a set of objective
key considerations and it will then invite operators to submit
entries to the competition. The eventual winner of the competition
will be eligible for a full premises licence once he has obtained
planning permission and the casino has been built.
21. The operator will therefore need to have an operating
licence, a premises licence and planning permission. The planning
permission is likely to be subject to a planning obligation.
22. The premises licensing process and the planning
consent process will need to be conducted taking account of the
need to clearly separate the licensing and planning functions.
ODPM and DCMS will issue guidance to local authorities on the
propriety issues surrounding these processes. The fact that an
applicant's proposal may be the preferred option in the competition
will not guarantee planning permission. Once planning permission
has been granted and the casino has been built, the operator will
be able to apply for a full premises licence, which he could expect
to obtain provided there has been no material change in the proposals
since the competition. Casinos which already have a licence under
the Gaming Act 1968
23. The arrangements described above for Regional,
Large and Small casinos are aimed at minimising the risk of problem
gambling from an increase in the number of casinos, particularly
from a proliferation of high stake and high prize gaming machines.
Existing casinos will be allowed to continue to operate, and to
have the opportunity to compete for the new licences. But the
Government does not believe it would be appropriate to allow them
to have all the new casino entitlements in circumstances where
a limit is imposed on the establishment of new casinos.
24. Accordingly, we propose that there will be no
size requirements on existing casinos and they will not be subject
to the ban on advertising and the 24-hour rule. They will, however,
be restricted to their current gaming machine entitlement of 10
gaming machines of up to Category B and they will not be allowed
to provide bingo or betting on real or virtual events.
25. Arrangements will be made to ensure that existing
casino businesses can in the future be transferred to new owners
and to new premises if the current premises for some reason become
unavailable (such as end of lease or fire), so long as it is within
the existing licensing area. A company operating a casino which
already had a licence under the 1968 Act may apply for a Regional,
Large or Small casino premises licence. If it is awarded one of
them for an existing casino, then it will be able to operate it
with all the new entitlements authorised by the new licence.
16 December 2004
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