British Prime Minister Thwarts Gaming Reform

In the US, Bill Frist became the gambling prohibition poster boy, defined by his role as online gambling's personal escort into the Dark Ages. The global envy of US gambling minded citizens and free market philosophers was heightened by the UK's apparent rational response to online gaming; seeking to legislate and regulate the terrain. Well, the US need not be jealous any more. The UK has its own gambling Dark Ages' poster boy and it's none other than new Prime Minister Gordon Brown.

The UK has been working for seven years on comprehensive gambling reform embodied in the Gambling Act of 2005, which was due to take effect in September 2007. Along with regulating remote gambling via the internet, they constructed a responsible gambling advertising policy, as well as paved the way for highly regulated Vegas-style casino operations.

Governments across the globe waited in anticipation for the UK's planned enactment in the hope that they could emulate the policies that finally harnessed offshore online gaming into a regulatory framework. Large casino operators eyed some of England's more economically mired municipalities as fertile ground for new investment. And although heavily regulated, lifting the ban on gaming advertising represented a potentially huge infusion of cash into media-related industries. But most of what took years of work and sizable investment by the government and private entities alike, has been undone by PM Gordon Brown in just a few short months.

On June 27, 2007, Gordon Brown assumed the office of British Prime Minister, but his heavy hand on gambling reform was felt even before he assumed the office. In his previous office as Chancellor of the Exchequer, it was Brown's job to establish the government's budget, including associated tax rates. The lynchpin to regulating online gaming hinged on being able to set a low enough tax rate to lure offshore companies into the UK's legal framework. Government pundits and industry analysts were banking on a proposed remote gambling duty in the range of 2-3%. But when Brown pitched the budget to the House of Commons earlier this year, he tagged the remote gambling duty at 15%; a tax everyone knew, including Brown, would be prohibitive. John Coates, chairman of the Remote Gambling Association, said that instead of attracting offshore gambling companies to the UK, the 15% duty would effectively penalize companies that chose to operate in the UK. "The UK has effectively turned its back on the industry. It will now be almost impossible for a UK-based operator to compete with offshore businesses."

If people thought that Brown's only mission was to derail online gaming reform, they were shocked by his July 11th announcement to suspend awarding the UK's first super casino license. Particularly dumbfounded were the MP's and businesses from the north-west. In January 2007, Manchester was selected as the site of a Vegas-style casino. After a lengthy and expensive bidding process, Manchester is now kissing goodbye it's hard fought and won effort to secure 2700 new jobs and £200 million in new investments. Also stymied were large casino operators like Harrah's and Genting who had both made sizable acquisitions in the UK late last year. Harrah's acquired London Clubs International, a company that operated seven casinos in the UK and had four more under development. In October 2006, Genting picked up Stanley Leisure, the UK's largest casino operator. The strategy for both Harrah's and Genting was basically the same; to get a foothold in the UK's evolving gaming industry. But with Brown's recent gambling-related decisions, there looks to be less evolution and more retraction on the UK gambling policy front.

In March 2007, the UK regulators rolled out their new rules for gambling advertising with predictably strict guidelines for advertising to children and the "vulnerable members of society." But last week, just days after the dropping the super casino bomb, the British government announced that it was reviewing its decision to lift the ban on gambling advertising. The ban was to be lifted in September, coinciding with the enactment of the Gaming Act of 2005. The review timetable is less than encouraging as a government spokesperson announced it would take "as long as it takes."

The UK's gaming reform experiment was seven years in the making and was poised to be an interesting counterpoint to current US policy. But what took seven years to plan took one man only four months to unravel. And in that context, the UK's gaming policy experience is starting to mirror our own; the exercise of one man's will.

UK regional casino in jeopardy

As forecast in yesterday’s InterGame Online, the new British Prime Minister, Gordon Brown, has caused uproar in the UK casino industry by killing off plans for the country's first regional ‘super-casino.’

In a reply during Prime Minister's Questions in the House of Commons yesterday, Brown said the regeneration of inner city areas would be a “better way” to help deprived areas than opening Las Vegas-style casinos.

Under Tony Blair's leadership, Manchester had won the campaign for the only super-casino licence after a £150,000 campaign. The proposed £200m investment was to have created nearly 3,000 jobs, with Kerzner International building and running the complex.

The other 16 medium and large casinos that were also in the policy will remain on schedule, although both Manchester and its main rival for the super-casino, Blackpool, will have to be introduced into that process now, and fresh competition will get under way.

The opposition Conservative Party were critical of the decision because Brown, while he was Chancellor under Blair, had repeatedly voted in favour of the super-casino plan.

The Commons decision to scale down the original eight super-casinos to just one for a test period was passed with a narrow majority after some Labour MPs opposed the measure. In March, however, the House of Lords threw out the proposal.

The Prime Minister is now advocating a period of “reflection” on the proposals before the publication in September of a report on the social impact of gambling. "I hope that during these summer months we can look at whether regeneration in the areas for the super-casinos may be a better way of meeting their economic and social needs than the creation of super-casinos," he said.

Despite this, however, Manchester City Council leader Sir Richard Leese remained upbeat, and refused to take the news as a sign that a regional casino was off the agenda.

"With a new Prime Minister taking over, we were always aware that it would be autumn before we knew definitively how the Government intends to address the proposal to site a regional casino in Manchester," he told InterGaming.

"I have read Gordon Brown's comments and think the negative analysis which some commentators are placing on them is overstated. There is no need for panic. We will continue to push for a destination casino in east Manchester, which we believe will deliver the maximum regeneration benefits for the area."

Casino impact to be talk of towns

The impact posed by the proposed casino in Middleboro will be the red-hot topic when town officials host representatives from 15 area communities at the Lakeville Public Library in a special Selectmen’s meeting on Wednesday, July 25, beginning at 7 p.m.

Events have moved rapidly since the meeting was announced in the middle of last week. The Enterprise of Brockton reported a multi-million-dollar deal struck between Middleboro officials and the Mashpee Wampanoag to develop the casino on Friday.

That announcement and Wednesday night’s community meeting in Lakeville set the stage for a Middleboro Town Meeting scheduled for Saturday, July 28 in which town residents will be asked to vote the agreement up or down.

Lakeville Town Administrator Rita Garbitt said representatives from the communities of Bridgewater, Easton, W. Bridgewater, Freetown, Berkley, Acushnet, Rochester, Taunton, Raynham, Carver, Halifax, Plympton, Plymouth, Kingston and Wareham had been invited to attend.

She said late last Friday that plans for the meeting had not been altered by announcement of the agreement reached by Middleboro and Wampanoag officials. It was that much more important to hold the meeting, she said, adding that the traffic impact posed to area communities seemed to top the concerns of some of the town’s neighbors.

And that’s certainly no less a concern in Lakeville, she said, where the train station and Routes 140, 18, 105 and 79 can all serve as casino conduits through town.

Raynham Selectmen Chairman John Donahue underlined the concern with a massive increase in traffic.

“It’s not like we’re airlifting tens of thousands of people into Middleboro every night. They have to come from somewhere.”

While roads are in the public domain, he said, local communities should expect help with the massive impact that can be anticipated to public safety and maintenance.

“We’re at the breaking point managing our own growth,” Donahue said. “We’re stretched out as it is.”

He added of the community meeting, “I’m really glad that Lakeville is taking this step. This is a regional development,” requiring regional mitigation.

“All the surrounding towns have to deal with the regional impact of a development this large,” Donahue said.

Taunton Mayor Charles Crowley said he would attend the Lakeville meeting. He said a large proportion of traffic to the casino coming from the west could be expected to travel through Taunton, much of it down Route 44.

Crowley said it was vital to see what other communities were planning to do to meet the challenges posed by the casino’s development and formulate a policy for Taunton.

Several injured in fight at illegal gambling site

Several individuals were injured when a fight erupted at an alleged illegal gambling operation in San Antonio Sunday afternoon.

Department of Public Safety spokesperson Lei Ogumoro said yesterday that one victim suffered injuries to his right hand and arm.

Ogumoro said another man who was the victim's companion but was not part of the gambling was also assaulted with a dangerous weapon during the confrontation.

She said several individuals also required medical attention.

A total of 27 individuals, all Chinese, were arrested for illegal gambling, she said.

Ogumoro said that on Sunday at 2:13pm, DPS received a report of an assault and battery incident that took place in San Antonio.

Responding police officers learned that several individuals assaulted one victim during an altercation at an illegal gambling site at a three-story building across the United International Corp.

As a result of the confrontation, several others were injured.

DPS activated the Tactical Response Enforcement Team to assist the responding police officers.

“This case is still under further investigation. More information will be provided at a later time,” Ogumoro said.