Gambling Bill 'could close pubs'

The "real winners" would be big investors, says the report

Small businesses will suffer and some pubs and bingo halls will close if gambling laws are eased, says a report.

Researchers say while the government's proposals will boost employment, some will come from staff moving from pubs, clubs, small casinos and betting shops.

The "real winners" will be big-name international investors, says the report by Sheffield Hallam University.

The research was carried out before the government scaled down the number of "super casinos" from 40 to eight.

But the report's author, Themis Kokolakakis, says he stands by his conclusion that gambling itself will only grown by between 16% and 25% - about half the government's projections.

Impact 'could be devastating'

"I don't believe the projections I have seen," he said.

"The new casinos may have a huge turnover but part of it will be drinks and eating out, which is not classified as gaming.

"This means that local business will suffer."

The report, part of the university's forecast of trends in the leisure industry into 2008, was published on the day the Gambling Bill was debated by MPs.

From what I have seen the positive side is being highlighted but the negatives are being ignored Themis Kokolakakis, report author

Mr Kokolakakis added: "Unless the market is regulated, the impact on existing small casinos could be devastating and wipe out their custom, just like the effect of supermarket shopping on corner shops," he said.

A spokesman for the Department of Culture, Media and Sport said the government would look at the report and consider the detail.

Last week it scaled down the number of Las Vegas-style "super casinos" opening initially from 40 to eight, following opposition from MPs.

Culture Secretary Tessa Jowell said any increase in problem gambling and their effectiveness at regenerating their areas would be assessed before any more would be approved.

In his report, Mr Kokolakakis said he felt the "real winners" would be major international investors, such as MGM Mirage and Caesars Entertainment, which are in talks about casinos in London, Sheffield and Newcastle.

"From what I have seen the positive side is being highlighted but the negatives are being ignored," he said.