MANCHESTER CITY COUNCIL

REPORT FOR RESOLUTION

REPORT TO THE EXECUTIVE

DATE 26th JULY 2006

SUBJECT REGIONAL CASINO

REPORT OF THE CHIEF EXECUTIVE

PURPOSE OF REPORT

To update the Executive on the City Council’s submission to the Government’s independent Casino Advisory Panel for the ability to licence a regional casino.

RECOMMENDATIONS

The Executive is recommended to:

1. Note the contents of this report and welcome the Panel’s decision to shortlist Manchester’s bid as one of eight shortlisted locations for a single pilot regional casino.

2. Delegate to the Chief Executive, in consultation with the Chair of the Executive and the Executive Member for Planning and the Environment, to agree the City Council’s next stage submission to the Government’s Independent Advisory Panel on Casinos.

3. Approve the approach for developing a social responsibility framework for casinos and other forms of gambling for report back to the Executive with detailed proposals later in the year.

4. Note that there is a report to the Executive elsewhere on this agenda on the implications of the Gambling Act 2005 for the City Council as licensing authority.

FINANCIAL CONSEQUENCES FOR THE REVENUE BUDGET

None from this report

FINANCIAL CONSEQUENCES FOR THE CAPITAL BUDGET

None from this report..

CONTACT OFFICERS

Howard Bernstein Chief Executive 234 3006 [email protected]

Tom Russell Chief Executive, New East Manchester 223 1155 [email protected]

Jane Deane Project Director, New East Manchester 223 1155 [email protected]

Ian McCormack New East Manchester 223 1155 [email protected]

BACKGROUND DOCUMENTS

1. Report to the Executive, ‘Reform of the Gaming Industry’, 17th March 2004. 2. Report to the Executive, ‘Sportcity Leisure and Entertainment Development: Appointment of Preferred Partner’, 7th July 2004. 3. Report to the Executive, ‘Sportcity Leisure and Entertainment Development: Update Report’, 27th July 2005. 4. The Gambling Act 2005 (available for inspection in Room 307, Town Hall). 5. ‘Gambling Act- Regulatory Impact Assessment’, Department of Culture, Media and Sport, April 2005 (available for inspection in Room 307, Town Hall). 6. Report to the Executive, ‘Sportcity Leisure and Entertainment Development: update Report, 22nd December 2005

WARDS AFFECTED All wards with particular implications for Beswick and Clayton and Bradford.

IMPLICATIONS FOR: ANTI-POVERTY Yes EQUAL OPPORTUNITIES Yes ENVIRONMENT Yes EMPLOYMENT Yes 1. INTRODUCTION

1.1 The City Council and New East Manchester (NEM) are seeking to secure the ability for Manchester to licence a new regional scale casino. The Executive received a report in December 2005 setting out the final provisions of the Gambling Act 2005 as they relate to regional casinos. The Executive requested that the Chief Executive seek clarity on the process for securing a regional casino licence and to continue to develop the case for Sportcity as the location for such a development.

1.2 This report updates the Executive on the progress of this work and suggests the next steps that need to be taken to secure this significant regeneration opportunity.

2. THE GAMBLING ACT 2005

2.1 The Gambling Act 2005, which received Royal Assent in April 2005, will allow for the licensing of 17 new casinos across the United Kingdom. An Independent Advisory Panel has now been appointed by the Secretary of State for Culture, Media and Sport to recommend the most appropriate locations for one regional casino, eight large casinos and eight small casinos. If selected it will be Local Authorities which will be responsible for issuing premises licences for the casinos and for any relevant enforcement issues relating to the licence.

2.3 The Secretary of State appointed the Independent Casino Advisory Panel, chaired by Professor Stephen Crow, to report to her with its recommendations by the end of 2006. Based on the Panel's advice, the Secretary of State for Culture, Media and Sport will specify the areas for the 17 new casinos (1 Regional, 8 Large and 8 Small) in a Parliamentary Order at the beginning of 2007. This Order will require the approval of Parliament.

2.4 There remains speculation on whether Parliament will be prepared to increase the number of Regional Casino licences to be granted as part of the initial pilot. Many Local Authorities, Regional Development Agencies and other interested bodies are increasingly recognising that significant regeneration and inward investment opportunities are likely to be lost if no changes are made. Lord Clement-Jones, the Liberal Democrat spokesperson, said in the House of Lords last October that if the Advisory Panel decided to recommend eight Regional Casinos and that decision was underpinned by the principle of destination gambling, the Liberal Democrat Party would be prepared to support a change in the Parliamentary Order. The other Opposition Party’s perspective is less clear and the Government has indicated that while it has no intention of initiating any such debate, it will continue to listen to Local Authorities, the public and of course Parliament, and that if there is a mood for change, and the demand exists, the Government will consider it. Irrespective of numbers Manchester’s case remains strong.

2.5 There is a separate report elsewhere on this agenda about the draft policy to be applied by the City Council as Licensing Authority when implementing the Gambling Act 2005. This contains a section which sets out proposed criteria in respect of the grant of a regional casino licence, in the event that the Council is successful in its bid to the Advisory Panel. Applications for such a licence must be dealt with by the Licensing committee who will be required to consider all qualifying applications on their own merits irrespective of the fact that the bid has to be related to a specific site..

3. THE INDEPENDENT ADVISORY PANEL

3.1 The Panel consists of five members who were appointed on 30th September 2005. The primary responsibility of the Panel is to make a recommendation to the Secretary of State as to which locations should be selected for the 17 casinos to be licensed. The DCMS SM statement outlining the remit of the Panel states that their primary consideration should be to “ensure that the areas identified satisfy the need for the best possible test of social impact. They will also take into account the potential for regeneration in the areas.”

3.2 On the 31st January 2006 the Panel issued a call for proposals from all Local Authorities who wished to be considered for a small, large or regional casino. The criteria and information requested included:

• Willingness to licence • Type of area • Social impact • Need for regeneration • Willingness to licence • Probability of implementation • Regional context • Community benefits • Unique characteristics

3.3 The City Council in conjunction with NEM submitted a bid to the Panel under these headings and Manchester was subsequently amongst eight local authorities who were shortlisted to go forward to the next stage of the process to be considered for a regional casino licence. The other shortlisted authorities are:

• Blackpool • Brent • Cardiff • Glasgow • Greenwich • Newcastle • Sheffield

3.4 The next stage in the process is for the Panel to hold an Examination in Public (EiP) at each of the eight locations shortlisted. The main purpose of the EiP is to provide the opportunity for discussion and testing in public and before the Panel, of selected issues arising from the Panel’s consideration of the proposals. The Chief Executive has been advised that the Panel has earmarked 7th September for the EIP on Manchester’s proposals. The Chief Executive and the Chief Executive of NEML are overseeing the preparation of the case and will lead its presentation to the EIP.

3.5 Participants in the EiP will be by invitation of the Panel. The Panel may invite representatives of other bidding authorities and appropriate regional bodies to join representatives of the local authorities if it considers this relevant. The Panel may also invite others with a special expertise on the subject in order to contribute to an understanding of the strategic issues. Proposing authorities and the public will have the opportunity to comment upon the list of issues and on those invited to attend.

Social Responsibility

4.1 Social responsibility will be a core value of the Gambling Commission and it is the Government’s intention to ensure that any new casino development will only be approved if it can be shown that it will operate in the context of a comprehensive social responsibility and accountability framework. This is a key component in the proposal for a Regional Casino in Manchester and it is the intention of the Chief Executive that the Council presents a robust social responsibility model which underpins the bid to the Panel.

4.2 Work has been underway or some time on the following issues:

* The extent to which problem gambling within the City and its catchment area reflects national trends.

* The extent of existing public and voluntary sector activity is responding to the outcomes associated with problem gambling, and what further action is required to strengthen multi-agency working.

* The relationships between different forms of gambling, including internet gambling, with national and local trends.

* The development of a monitoring and evaluation framework building upon international best practice.

* An examination of existing structures to co-ordinate all of these activities.

This work will also be informed by the critical success factors which were reported to the council on what constitutes a successful Regional Resort Casino, which includes a strong economic catchment area and all the year round demand.

4.3 Discussions are taking place with representatives of existing public and voluntary agencies, Greater Manchester Faiths and Community Groups, as well as representatives of existing gambling facilities within the City. The intention is to promote a framework which not only reflects a comprehensive approach to the social impact of gambling in all its forms, but one which commands respect and support from existing operators and owners and facilities.

4.4 The Council’s work is also being supported by other public service providers such as GMP and specialist consultants. The outcome will be reported both to the EIP and to the Executive in September.

Regional Spatial Strategy

4.5 The Executive will recall it received a report on the draft Regional Spatial Strategy at their November meeting, which set out the current draft policy in favour of Blackpool as the favoured location for a regional casino in the North West and which outlined the City Council’s objections to the policy as currently drafted. The limit of one Regional Casino is a national policy issue, and the Executive agreed that it should be the purpose of planning policy to identify the most appropriate locations for this type of development across the region, having regard to viability, regeneration and tourism benefits and the principles of sustainable development. This position was endorsed by AGMA in the formal consultation on the draft RSS.

4.6 An independent review of the Pion report commissioned jointly by NWDA, GONW and NWRA to inform their policy on regional casinos demonstrates that the analysis did not address the real drivers of successful regional casinos. It also showed that the NWDA/ NWRA’s analysis focuses solely on the North West region and did not take into account the competitive position between locations inside and outside the North West. The Chief Executive would add that no consideration has been given by the NWRDA/NWRA on social impact, and what locations would “… satisfy the need for the best possible test of social impact”.

4.7 It is clear from the analysis undertaken by Europe Economics that when compared to competitor locations across the UK, Manchester is the only location within the North West and outside the South East which is able to compete effectively with London. Europe Economics conclude that Manchester benefits from an all-round offer which would make it extremely attractive as a location in which to pilot the regional casino concept, benefiting from high levels of local and established demand, an International Airport within good connections into the City Centre and throughout the City and robust mechanisms to ensure the delivery of the maximum regeneration benefits from a regional casino development. High levels of local and established demand also assist in the creation of the strongest platform for developing a social responsibility policy.

4.8 The NWDA on this issue while welcoming the shortlistng of Manchester remains of the view that Blackpool is the higher regeneration priority, but discussions are continuing.

4.9 There will also be an Examination in Public on the draft RSS in the autumn where AGMA in addition to the City Council will be making representations.

5. CONCLUSIONS

5.1 The Executive is requested to authorise the Chief Executive to progress the case for Regional Resort Casino and to submit a formal proposal to the Independent Advisory Panel in early 2006. It is also recommended that the City Council work in partnership with key stakeholders to continue to develop a robust social responsibility strategy to guide the operation of casinos in the City. The Chief Executive will bring detailed proposals on social responsibility to the Executive in September.

5.2 Detailed recommendations appear at the front of this Report.

SIR HOWARD BERNSTEIN CHIEF EXECUTIVE