Legal challenge to 'super-casino' thrown out

The British Casino Association fears the 17 new "experimental" casino sites, most of which look set to be run by giant U.S. gaming corporations, will rob its members of £120million a year in revenue, forcing some out of business under a 'two-tier' system.

But a High Court judge ruled yesterday there was no legal case for blocking the policy, and threw out an application to force ministers to think again.

Labour's troubled gambling reforms will allow a single giant super-casino to be built in Manchester, along with eight new "large" and eight "small" casinos - although despite the descriptions there are no upper size limits and all 17 venues are likely to be huge.

The BCA and four of its largest members went to the High Court accusing Culture Secretary Tessa Jowell of "blatant unfairness" against the existing casino trade.

The Manchester site will be allowed to operate 1,250 machines with unlimited jackpots, while the "large" and "small" casinos will be allowed 150 and 80 gaming machines respectively, with a £4,000 prize limit.

By contrast, all Britain's existing casinos will have to stick with their existing limits of just 20 gaming machines with £4,000 prizes.

Critics claim high-stakes gaming machines are one of the most addictive forms of gambling, encouraging adrenaline-fuelled punters to chase their losses, totally absorbed by the flashing lights and sound.

At the High Court the BCA, representing more than 90 per cent of Britain's current gaming businesses, claimed the Government was failing to provide "a level playing field" and could ruin existing casinos.

Michael Beloff QC accused Ms Jowell of carrying out an "inadequate" consultation and "closing her mind" to the possibility of allowing BCA members to operate more machines to help them deal with the increased competition.

But Mr Justice Langstaff ruled that the legal challenge failed on all counts and awarded costs against the BCA.

He said the Government policy was properly drawn up "whatever the merits of arguments about its consequences."

The ruling was welcomed by the Department for Culture, Media and Sport which claimed it had always taken a "cautious" approach to the legislation.

A spokesman said the 17 new casinos remained a "pilot scheme" and it would be wrong to allow more gaming machines in older casinos until the impact of the expansion had been measured.

But the BCA urged the Government to "look again" at its policy in order to secure fair competition between old and new casinos.

Chairman Penny Cobham said: "Our view is that the very substantial competitive advantage granted to the 17 new casinos is disproportionate and will pose a serious threat to long-established British businesses and jobs."

The Licensing Act, which comes into force in September, has had a rocky ride through Parliament and remains deeply controversial.

First a Commons revolt forced the Government to cut the number of proposed super-casinos from 40 to just one and then peers voted against Tessa Jowell's decision to locate the site in Manchester - although ministers have pledged to press ahead.

In his recent budget Chancellor Gordon Brown effectively scrapped whole sections of the Act designed to regulate on-line gaming operators when he set tax rates for gambling websites so high that none of them are now prepared to relocate to the UK, rendering the tough new regulatory regime irrelevant.