U.K. Lawmakers May Force Blair to Scale Back Gambling Bill

Oct. 27 (Bloomberg) -- U.K. Prime Minister Tony Blair's government may scale back plans for U.S.-style super-casinos after lawmakers from the ruling Labour Party joined the official opposition in expressing doubts. Companies including Stanley Leisure Plc and Rank Group Plc will be allowed to build bigger casinos under the bill. Blair argues that new laws are needed to overhaul 36-year-old gambling laws and prevent children from using slot machines. Opposition Conservative and Liberal Democrat members of Parliament have tabled amendments to force the government to cap the number of big casinos. Labour lawmakers today also said they objected to the bill as it is written. ``There is a genuine concern in the country over various aspects of the gambling bill,'' David Winnick, a Labour member of parliament, told Blair during the prime minister's weekly question time in the House of Commons. ``The last thing we want is a casino-type society.'' The House of Commons will debate the issue on Nov. 1 when the bill has its second reading, where lawmakers debate a measure and provide guidance on changes to be made by committees. Labour's control of two-thirds of the seats in the Commons probably will allow the legislation to progress, though government ministers may offer concessions in the coming days to defuse the dispute. ``I do understand the concerns,'' Blair said in reply to Winnick. Blair argued that 90 percent of the provisions in the bill will force ``better regulation'' and ``restrict access'' to gaming to adults. Slot Machines The bill says slot machines paying prizes of more than 2,000 pounds ($3,680) will be allowed for the first time, restricted to the largest casinos because of concerns about the effects on gamblers. About 6,000 machines from some small businesses, including takeaway food outlets and taxi offices would be removed. The gaming industry currently supports 100,000 jobs in the U.K., according to a government assessment of the bill's impact. That assessment anticipates up to 5.5 billion pounds of investment in the British industry if the measure is passed, creating up to 85,000 jobs in the next five years. Conservative lawmakers and other opposition party members said the legislation as written will open the way for U.S. companies to take over more of the British gaming industry. ``Isn't the bill in fact further evidence of the fast- evolving special, if not unique, relationship between this prime minister and the United States?'' Elfyn Llwyd, a lawmaker from the Welsh nationalist Plaid Cymru party, asked Blair today. Blair's View Blair said yesterday the government expects no more than 40 of the super-casinos to be built. Today, he said local authorities would have the ability to turn down permission for such facilities. That addresses one of the demands of the Conservatives, who plan to vote against the bill. ``The laws on gambling need updating, particularly to address online gambling, which currently is completely unregulated,'' said John Whittingdale, the Conservatives' spokesman on gambling. ``The bill as it stands opens the door to the influx of a large number of American-owned super-casinos in our towns and cities.'' Within the Labour Party, Kate Hoey and Frank Field also have said they're concerned about the bill, which is sponsored by Tessa Jowell, the Cabinet minister in charge of the Department of Culture, Media & Sport. Government's Benefit Tax revenue from gambling will rise to 12.5 billion pounds in five years from 8.7 billion pounds in the year through April 2004, the government estimates. Money will be channeled into investment in cities such as Blackpool, a seaside resort in northern England, that's ``urgently in need of regeneration,'' Blair said. Stanley Leisure Plc and Rank Group Plc, owners of casinos in the U.K., have said the country's $3.8 billion gambling would benefit by deregulation. Companies including Las Vegas-based MGM Mirage and Kerzner International Ltd. of the Bahamas also plan to build casinos in the U.K. U.K. law currently forbids machines paying prizes exceeding 2,000 pounds. Casinos are allowed a maximum of eight each. All casinos are restricted to members, and gamblers joining for the first time must have been members for 24 hours before they can go in. Casinos may also only be built in certain areas defined by law. The bill scraps the 24-hour rules and the restrictions on areas where casinos may operate. It lets casinos larger than 5,000 square meters install up to 1,250 no-limits machines.