Brown backs away from super casino plan

Britain's new prime minister, Gordon Brown, has backed away from plans to build a Las Vegas-style super casino in Manchester, saying there may be better ways to encourage economic growth there.

A source close to government said: "The regional casino is pretty much dead in the water", adding that plans for 16 new smaller casinos would be unaffected.

In January, Manchester unexpectedly won a competition to host the only super casino under Britain's controversial casino expansion plans.

The project was expected to generate 2,700 jobs through its 5,000 square metres of gaming floors and bars and in surrounding cinemas and hotels.

But in March politicians, led by church leaders in the upper House of Lords, rejected plans to build the Manchester casino, following months of campaigning by anti-addiction campaigners.

"This is an issue on which there is no consensus found in the two houses of Parliament," Mr Brown told parliament yesterday.

"I hope that during these summer months we can look at whether regeneration in the areas for the super casinos may be a better way of meeting their economic and social needs than the creation of super casinos," he added.

"There is no need for panic," said Manchester City Council leader Richard Leese. "We will continue to push for a destination casino in East Manchester."

The government under former Prime Minister Tony Blair had originally envisioned over 20 Las Vegas-style casinos but, faced with strong opposition, cut that number back to eight and then just one.

Neil Goulden, chief executive of Europe's biggest gambling company Gala Coral, said: "Gordon Brown apparently knows there are no votes to be won on gambling issues, just negative press. It's a shame as there are good solid economic impacts from gambling."

Overseas casino operators invested millions of dollars in planning and lobbying in the UK. Potential bidders to run the Manchester casino included US operators Las Vegas Sands and Harrah's and Britain's Ladbrokes and Rank.

"The casino gaming industry has likely spent a combined $10 to $20 million on UK business development efforts over the last couple of years," said Jonathan Galaviz of Las Vegas-based consultancy Globalysis.

Fact box
Laws planned by new British Prime Minister

British Prime Minister Gordon Brown gave Parliament an advance glimpse yesterday of the new measures he plans on security, health and housing.

The planned legislation includes:

Counter-terrorism
• A new counter-terrorism bill which would introduce tougher sentences for terrorist-related offences.

Housing
• Brown wants three million new homes built in Britain by 2020, a quarter of a million more than previously planned.
• The housing programme should be done in environmentally friendly ways using mainly "brownfield" or previously developed land and building "eco" towns and villages.
• The government will consult local authorities on using the New Towns Act to enable "eco towns" - towns with zero or low-carbon housing - to be built more quickly, Mr Brown said.

Education
• A new education Bill will mean all young people will stay in education or training until they are 18.

Energy
• The Energy Bill will strengthen the regulatory framework to encourage private sector investment in offshore gas supply infrastructure. It will also promote clean energy projects and use of renewable energy.

Environment
• A climate change Bill will create a long-term legal framework to reduce Britain's carbon dioxide emissions up to 2050 and beyond.

Health and social care
• The Health and Social Care Bill will create a stronger health and social care regulator.
• The Children in Care Bill will do more to protect vulnerable children, while the Child Maintenance Bill aims to prevent children falling into poverty when parents split up.

Unclaimed assets
• The Unclaimed Assets Bill is aimed at using money in dormant bank accounts to improve youth and community facilities.

Business
• The Enforcement and Sanctions Bill will keep the burden of regulation on compliant businesses to a minimum while targeting and penalising those businesses that deliberately break the law.
• The Employment Simplification Bill will deliver simpler and fairer enforcement of the national minimum wage.

Pensions
• A Bill introducing a new scheme of low-cost personal accounts to give people without access to a good quality pension scheme the opportunity to save for a pension.

Constitutional reform
• A Bill aimed at strengthening Parliament's ability to hold the government to account.