Casinos challenge fails in court

How the Manchester super-casino site could look

Small casino operators have failed in their High Court challenge against plans for 17 new casinos across the UK.

The British Casino Association argued that existing venues would become "second-class" if the new sites were allowed more gambling machines.

The government said the challenge was without merit and Mr Justice Langstaff ruled against it on all counts.

The UK's first super-casino is planned for Manchester, with deregulation under the Gambling Act from September.

May's High Court hearing was aimed at establishing whether the act discriminates against existing operators, who are allowed far fewer gambling machines than the 17 new venues will have.

Lady Penny Cobham, chair of the British Casino Association (BCA), said the judge had acknowledged the concerns of existing casinos.

"We hope that the judge's comments will encourage the department and the government to consult more effectively and to reconsider the position of legitimate and successful British casinos going into the future," she told BBC News 24.

It will pose a serious threat to long-established British businesses and jobs Lady Penny Cobham British Casino Association

The Department for Culture, Media and Sport said it welcomed the ruling that its policy "was fairly and properly made".

"Our approach has always been a cautious one," a spokesman said.

Sports Minister Richard Caborn said that the gambling industry was being modernised while observing the principles of "protecting the vulnerable, making sure it's crime free and making sure that those who have a bet, it is indeed a fair bet".

A High Court judgement against the plans would have forced a rethink.

Peers voted against the plan for a Manchester super-casino in March, but the government has said it intends to continue pressing forward with its policy.

'Disproportionate' advantage

The BCA had argued in court that the new premises would have an unfair advantage over existing casinos.

Michael Beloff, for the BCA, told the court lost profits could be as much as £120m a year.

And he said Culture Secretary Tessa Jowell had not lived up to her "duties of fair consultation" concerning the new developments.

Existing casinos will be allowed no more than 20 limited stake and prize gaming machines from 1 September.

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The new small, large and regional casinos will be allowed between 80 and 1,250 machines.

"It is important to note that the court was concerned purely with process. It was not making a judgement on the merits of the government's policy of discrimination," said Lady Cobham.

"Our view is that the very substantial competitive advantage granted to the 17 new casinos is disproportionate and will pose a serious threat to long-established British businesses and jobs."

The locations chosen to have a "large" regional casino are Leeds, Hull, Great Yarmouth, Middlesbrough, Milton Keynes, Southampton, Solihull and Newham, in London.

Smaller casinos would be in Bath and North East Somerset, Dumfries and Galloway, East Lindsey, Luton, Scarborough, Swansea, Torbay and Wolverhampton.

Their sizes determine the number of machines and the size of the jackpots they would be allowed to offer.

The BCA represents the interests of existing casinos, and its legal action was backed by member companies operating 116 of the UK's 138 casinos.