Changes in UK gaming legislation and the opportunities presented for property developers and investors

Abstract

Apart from the high rents sought for casino premises, it is probably true to say that casinos have been the poor relation in the retail and leisure property family. Almost every other sector within the market has succeeded in reinventing itself several times over the last 40 years. The retail sector has seen everlarger shops and the development of supermarkets, hypermarkets, shopping centres and retail parks. In the leisure sector, larger hotels have been developed by global operators and one has seen the development and growth of health clubs, multiplexes, new and themed pub chains, marina developments, leisure parks and family entertainment centres (FECs). In contrast, since the Gaming Act 1968, the number of casinos in the UK has grown by only 30 per cent during that 35 years.1 Moreover, until very recently the size, style and nature of those casinos have remained virtually unaltered during all that time. In 1989 the number of casinos operating was 116. Almost ten years later, in 1998, there were 115. By 2002 this number had grown to 130, but a year later there were 135.2 This paper will examine the reasons why this sector has been so left behind in the retail and leisure explosion of the past 30 years, why that is apparently beginning to change and the prospects for future growth, investment and development.