|
The regional casinos debate:
Regeneration and responsible gambling in the
UK
Proceedings from the Social Market Foundation Conference,
July 2006
This conference considered a series of papers introduced by
their authors. Their preoccupation is the advent of "regional"
rather than "large" casinos in the UK. However, there are some
interesting perspectives that apply to both scenarios and if you
want to read a number of short papers which capture the essence of
the debate, then this is a good selection.
You can read the
full report. A summary of the main points of
the papers has also been provided below:
1. Regional casinos as a source of economic
regeneration
Author: Brad Smith, former chairman and chief executive,
New Jersey Casino Control Commission, 2006
This paper tells the story of how casino licensing and
regulation by the New Jersey State authorities enabled Atlantic
City to rise like a Phoenix from the ashes of economic decline.
There are some interesting parallels with somewhere like Blackpool
rather than Newham and the scale sounds "Las Vegas" like. However,
the structure of licensing and local taxation that is outlined is
of interest. Through this, New Jersey has been able to fund a huge
volume of social welfare programmes and build new sports
facilities.
It also talks of the indirect employment effects. For every job
created in the casino it says that 1.09 jobs are created in
ancillary services.
2. What is regeneration?
Author: Jon Ladd, chief executive, BURA,
2006
This paper offers the following definition of regeneration:
"Urban Regeneration is a comprehensive and integrated vision
which leads to the resolution of urban and rural problems and which
are seen to bring a lasting improvement in the economic, social and
environmental conditions of an area."
The paper also features some limited discussion of casinos as
tourist attractions.
3. Economic rents and good causes
Author: Professor Peter Collins, Centre for the Study of
Gambling, Salford University, 2006
This is an intelligent account of what a responsible gambling
policy might look like set in the context of accessible economic
theory. The paper's main points are as follows:
- Banning gambling where it would create jobs for unemployed
people would be just as irresponsible as allowing gambling to exist
in areas where problem gambling would be the result
- Many jobs are potentially in ancillary services to gambling,
e.g. hotels, bars, leisure etc. - fruit machines are the least
labour intensive element
- Introduces the notion of "economic rents," i.e. compulsory
taxation. This is made possible by limiting the number of operators
and allowing them to make "abnormal profits" - a proportion of
which can be taken for good causes
- Good examples of success include Biloxi, Melbourne, Cape Town
and Singapore, while notable failures include New Orleans and the
Australian machine industry outside casinos
4. Perspectives, research and experience from other
jurisdictions
Author: Professor Alex Blaszynski, University of Sydney,
Australia, 2006
A relatively straightforward proposal for a national framework
for the promotion of responsible gambling, featuring:
- A gambling prevention programme, embedded in the national
curriculum, to illustrate the statistical probabilities of winning,
to be taught alongside other personal development issues such as
drugs and sex education
- An environment that is responsible
- Clear linkages with support services - because a small degree
of problem gambling is inevitable.
Professor Blaszynski also advocates a strong framework of
regulation for operators.
5. Can gambling be healthy?
Author: Professor Corinne May-Chahal, Lancaster
University, 2006
This paper introduces some public health perspectives, from the
viewpoint that gambling is normal - most of us do it. It advocates
the casino as a controlled zone where we can take risks and find
excitement or relaxation.
The paper takes the view that the largest body of research has
been on problem gambling, which skews perceptions, as the
overwhelming majority of gambling is non-problematic. Also a lot of
research focuses on adolescent problem gambling, which Professor
May-Chahal argues is ill-defined. She quotes some surveys of
adolescents asked about their preferred "deviant" behaviour in
adolescence. Sex, drugs and alcohol are much more popular with our
adolescents than gambling
6. Responsible gambling policies - enlightened self
interest
Author: Vicki Flannery, former CEO, Australian Gaming
Council, 2006
This paper postulates that the "unregulated growth" of internet
gambling requires governments to bring forward gambling reform, or
the financial and social benefits that could be generated in the UK
will haemorrhage to who knows where and social benefits will
probably be lost.
Ms Flannery outlines some unintended consequence of various
attempts at responsible gambling polices. One example was an
attempt in Canada to limit exposure to gaming machines. The
authorities introduced an automated system which limited the time
an individual could play on a machine. After two hours and 25
minutes the machine forewarned the individual that it will close
down in 5 minutes. At two hours and 30 minutes the machine shut
down. Studies have shown that the effect was to initiate a
five-minute gambling frenzy where stakes were ramped up and greater
risks taken. It did not have the desired effect.
She outlines the following barriers to a responsibility
policy:
- Lack of clarity of definition of gambling-related harm
- Lack of consensus about what problem gambling looks
like
She refers to "the Reno Model" as a toolkit for the development
of responsible polices and outlines the following three models:
- Strict regulatory control of consumer behaviour
- Laissez-faire approach - advocates self-regulation, e.g.
similar to the UK approach to alcohol
- She favours a middle ground - a consumer protection and social
safeguard model
|