Casino News

Financial crisis hits plans for new UK casino licences

2008-12-22 12:01:20

Some of the UK's largest gaming operators have revealed that they will only bid on a few of the 16 new casino licences that were created by the government in 2007.

According to the Sunday Times, Genting Stanley, Rank, Ladbrokes, London Clubs International and Gala Coral have suggested they will only put in offers for around a handful of the licences in light of pressure from the economy.

One gambling executive told the newspaper: "In a better economic environment, the new licences are viable and appealing. In the current environment, it will be challenging to make a number of them work."

An increase in gaming duty and last year's imposition of a nationwide smoking ban have taken their toll on the UK's gambling industry over the last 18 months and the economic downturn "has proved the final nail in the coffin", says the Times.

Similar effects have been seen in the US where some have suggested that the industry is as much in need of a Federal bailout as the American car sector.