Relaxation of gambling laws may double number of British casinos

The number of casinos in Britain is likely to double aftera radical reform of the gaming industry to be announced this week.

The number of casinos in Britain is likely to double aftera radical reform of the gaming industry to be announced this week.

Industry insiders predict that casino operators will profit the most from deregulation, with curbs on the location of new casinos expected to change. This could increase the number of casinos from 118 to 200 nationally.

A report by a committee chaired by Sir Alan Budd, a former chief economic adviser to the Treasury, is expected to recommend a widespread liberalisation of the 1968 Gaming Act. The review, which was presented to the Department of Culture, Media and Sport at the end of last month, could be published today.

Casino owners such as Stanley Leisure and Gala Group hope to be allowed to increase the number of slot machines from 10 and to offer a jackpot prize of up to £1m by linking machines nationally. Richard Finch, an analyst at Williams de Broe, said: "Machines are considered the quickest and most high-yield aspect of casinos." Bob Wiper, the chief executive of Stanley, said: "More machines with bigger prizes would undoubtedly unlock a fundamental change in the atmosphere and well-being of casinos."

John Kelly, the chief executive of Gala, wants the Government to address restrictions on advertising. Casinos can now advertise only in newspaper classified sections and in telephone directories. Analysts say that lifting these restrictions would boost revenues, given that less than 2 per cent of the population has ever visited a British casino.

Other proposed changes are allowing casinos to offer bingo, betting and games under one roof, along the lines of Las Vegas gambling emporiums; relaxing the 24-hour "cool-off" period before new members can be admitted; and allowing casinos to serve drinks at the gaming tables. The Budd report also proposes relaxing limitations on betting shops. At present no shop can open if there is another within a 400-yard radius.

Bingo operators have called for the leeway to double the maximum prize to £1m. Sir Peter Fry, the chairman of the Bingo Association, wants bingo to operate on a level playing field with the National Lottery.

The review suggests setting up a new pan-industry regulator. Such a body would probablytemper any liberalisation with new rules to prevent under-age gambling and problem gambling. Industry frustration with the old Gaming Act has grown since the launch of the National Lottery in 1994, which has made gambling more socially acceptable.