UK Casino Body Challenges Legality of Gambling Act's 17 New Casinos- Poker on Park?

Government plans to build 17 new U.K. casinos as part of the 2005 Gambling Act, including the Manchester 'super casino', have been challenged by the British Casino Association (BCA) at the High Court in London this week, effectively putting poker's expansion on hold.

The chairwoman of the BCA, Penny Cobham, claims that the project would give an unfair advantage over the already established British casinos, and therefore the new casinos discriminate against the existing ones.

Despite the Lords rejecting the bill for the new casinos, mainly due to Manchester being the chosen site for the super-casino, the government has said it will continue to pursue the legislation.

The BCA is an industry body that represents the interests of more than 90% of the existing British casinos. They are seeking court orders to compel Culture Secretary Tessa Jowell to reconsider Government policy to proceed with the new casinos because it poses such a serious and damaging threat to existing casinos.

Lawyers representing the BCA in the High Court told a judge that if the new wave of casinos went ahead, lost profits could be as much as GBP 120 million a year (USD $237.4 million or EUR 177 million). They also claimed that established operators would be forced out of business.

The case is being backed by four companies: Gala Casinos Ltd, Grosvenor Casinos Ltd, London Clubs International Ltd and Stanley Casinos Ltd. Between the four companies, 116 of the 138 existing casinos in Britain are operated.

Casino operators have accused Culture Secretary Tessa Jowell of "blatant unfairness" in her treatment of existing gaming establishments.

Michael Beloff QC, appearing for BCA and four of its member companies, said the policy "has created a disparity which is potentially seriously damaging to our legitimate commercial interests."

He said Culture Secretary Tessa Jowell had previously pledged that she would ensure "fair competition between old and new" and added, "Whether she deliberately abandoned that policy or not, she has created a situation in which existing casinos are condemned to second-class status."

Lawyers for the Culture Secretary argue that the challenge "is without merit and should be dismissed".

City AM reports that the High Court verdict is expected in two to four weeks.

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