Manchester super-casino is a good call - but the benefits are not guaranteed
Date: 30/01/2007Max Nathan, Senior Researcher at the Centre for Cities, says:
"This was always a hard decision to call. Greenwich, Blackpool and the other competing cities will of course be disappointed by this news. We felt Blackpool had the edge. They, in particular, will have to revisit their economic strategy for the future, and consider whether to continue pursuing casino-led regeneration, or explore alternatives.
"The real work for Manchester is about to begin. The Council's proven record on delivering successful regeneration in the city has clearly persuaded the Panel that it is best equipped to manage the positive and negative impacts that a super-casino might have.
"The evidence says big casinos deliver mixed blessings. They may not create that many net new jobs, and problem gambling is likely to increase. Manchester must be realistic about the potential costs and benefits of the super-casino, and quickly begin a clear forward strategy outlining how it will link local people to the new jobs, provide advice to local businesses, and take steps to limit gambling addiction. We think the casino operator should pay for some of this – via a levy set by the local authority."
The Centre recommends that Manchester takes the following steps in order to maximise the regeneration benefits:
- Produce a clear plan – showing how the casino will help the local economy by producing rigorous predictions of new jobs, the potential impact on unemployment and how any increases in problem gambling could be dealt with;
- Link local people to casino jobs – building on the city's existing training and employment capacity, such as the Stepping Stones Into Work project and the new City Strategy pathfinder
- Tackle gambling addiction – work with community groups, charities and social services to minimise risks of increased problem gambling
- Help local business – provide advice to local businesses to help them benefit from the casino; and
- Ask the operator to share the costs – consider a local levy on casino operator profits to cover potential social costs such as policing and problem gambling. For example - when new housing or offices are built, Section 106 Agreements help local authorities provide extra benefits, like new parks and public spaces.
Notes to editors:
The Gambling Act
In 2005 the ‘Gambling Act' passed through Parliament. It will come into effect fully in September 2007. This Act relaxes gambling regulations significantly, allowing for one super-casino, eight large, and eight small casinos to be built across the UK.
Who decides?
The five-strong Independent Casino Advisory Panel (CAP) – which announced today's decision – is led by Professor Stephen Crow, former Government Chief Planning inspector 1988-1994.
What are the criteria for success?
The CAP has stated that the super-casino must address a need for regeneration in the chosen city. The CAP must also take account of the new casino's social impact and ensure that it is not harmful. The CAP is concerned that people living close to some of the proposed sites may have a high vulnerability to gambling addiction.
The selection process
A large number of cities submitted bids to host the super-casino. A final shortlist of seven was decided upon. These cities were Greenwich (the Dome), Cardiff, Blackpool, Glasgow, Manchester, Newcastle and Sheffield. Greenwich and Blackpool were considered the frontrunners.
The Manchester bid
The Manchester bid contended that the casino development would attract 1.3m new visitors to the city, and create over 1,000 net new jobs for the city of Manchester.
The bid focussed on the city's proven track record on delivering succesful regeneration programmes. It stressed the significant experience accrued by Manchester City Council through several major urban renewal and social development projects over the past two decades. These include 'the Financial Inclusion and Financial Literacy Project', and 'the East Manchester Brokerage Project.'
Manchester also argued that they were the best placed city to form a productive relationship with the casino operator. The Council argued that they would expect the operator to be genuinely committed to sharing the same employment and regeneration goals, and to work closely with local employment initiatives to support individuals at all levels in their progression to work. Once again they stressed their experience of dealing with similar situations in the past, in particular 'The Asda Walmart Employment Support Programme'.
In addition, they argued that several schemes are already underway in Manchester to target specifically the hardest to reach sections of deprived communities, including 'The New East Manchester Intensive Support Project.'
By utilising the experience and expertise gained from these previous projects with the casino development, Manchester City Council argued that they were the best placed of all of the competing cities to ensure that the benefits of the super-casino would extend to the hardest to reach sections of deprived communities and deliver a genuine regeneration boost.
The Panel said Manchester offered the most complete package of all competing cities. East Manchester has a clear regeneration need, and the city provides a large catchment area for the super-casino to draw customers from. The Panel pointed to the fact that Manchester's economy is a key building block of the North West as a region. And they were impressed that the Council's plan had been developed with local communities, neighbouring authorities and other stakeholders.
The super-casino
The super-casino will have a minimum total customer area of 5,000 m, and be permitted up to 1,250 Category A unlimited jackpot gaming machines. These machines are big revenue-makers for casinos, but also considered among the most addictive. The government also expects the super-casino to have hotels, conference facilities, restaurants, bars and areas for live entertainment.
