The sum total of the UK Government’s regeneration efforts on the back of mega casino licensing are down to just one “experimental” regional license.

Alex Kyriakidis, Global Head of Tourism, Hospitality and Leisure at Deloitte, says: “As a result of the Government’s deal to save parts of the Gaming Bill, the UK will no longer be on top of the US gaming industry’s investment list.  The US operators, many of whom have made substantial investments in land options, will channel their development dollars in other emerging jurisdictions such as Macau and Singapore.

“A major issue facing the Government will be where to locate the first experimental regional casino and on what terms. Being subject to EU competition law, there may well be legal challenges to the notion of ‘awarding the license to a specific destination’.  In addition, unless the regional license bid is open to all prospective bidders, including the UK licensed operators; we can see nothing but more turbulence ahead.  We may well end up with a license bid process that calls for a combination of investment, regeneration and gaming duty evaluation criteria that allows the market, in conjunction with local councils to “bid” for the license.

“The regulation of on-line gaming is a welcome step but there are serious doubts as to whether on-line providers will queue up to be licensed in the UK only to face a 30% corporate tax when, at present, the vast majority of the offshore based providers pay little or no corporate taxes.

“The short-term beneficiaries of the Gaming Bill will be the indigenous UK casino and bookmaker industries.  The former will be freed to market casinos as a legitimate venue for an adult night out and the latter will continue to benefit from the Fixed Odds Betting Terminals (FOBTs) that can typically boost profits in the average betting shop by up to £2000 per week.”

Ends

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP.

Deloitte & Touche LLP is the UK's fastest growing major professional services firm based in 21 UK locations, with over 10,000 staff nationwide and fee income of £1,246 million in 2003/2004. It is a member firm of Deloitte Touche Tohmatsu, a leading professional services organisation, delivering world class audit, tax, consulting and corporate finance services, with around 120,000 people in over 140 countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity.

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The information contained in this press release is correct at the time of going to press.