GALA GROUP, the bingo and casino operator, reacted angrily to proposals that would restrict the introduction of Las Vegas-style unlimited prize slot machines to the new breed of super-casinos.
John Kelly, chairman, said he would lobby the Department for Culture, Media and Sport “vociferously and robustly” after the Government said it would bar machines from all but the next generation of 90,000-120,000 sq ft casinos.
Mr Kelly said: “There has been three and a half years of consultation regarding the forthcoming Gambling Bill and, until now, there has never been any suggestion that the unlimited jackpot machines would be restricted to the Las Vegas-style casinos.”
“This is very, very wrong. It is unfair and will create a massive chasm between the existing casino operators and the new breed because unlimited jackpot machines are what the customers want and so are far more profitable.”
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The new super-casinos are part of the Government’s Gambling Bill, planned for later this year, which aims to liberalise Britain’s antiquated regulatory framework. They will be up to four times bigger than the existing largest outlets.
Tessa Jowell, Culture Secretary, also revealed that the existing large outlets would be able to operate up to 150 limited prize slot machines only, less than a third of the number that analysts had anticipated.
She “favoured a more cautious, incremental approach to reform”, sending shares in Stanley Leisure, the biggest casino operator, down 30.5p to 446p. Shares in Rank Group, owner of Grosvenor casinos, fell 18.75p to 285.5p. A Stanley spokesman said the company would not comment until it had studied developments.
Fruit and slot machines will be banned in unlicensed premises such as takeaway restaurants and taxi offices, which will mean removing machines from about 6,000 sites.
Ms Jowell said: “We only propose giving adults additional choice where we can also protect children and vulnerable players. If there is evidence of problems emerging as a result of reform, even tougher protections will be introduced. But if there is sustained evidence that reform has gone well, then we can consider allowing further choice.”
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Paul Leyland, analyst at Seymour Pierce, said: “There was a perception that anybody operating casinos would benefit from deregulation of the industry. But this is not deregulation; it’s re-regulation.”
The Government also said it would introduce new powers for local authorities to stop casinos opening in their areas.