Gambling a safe bet for lawyers

The UK gaming industry is set for a boom after the Budd review - and lawyers should be ready to take advantage, writes Anthony Wollenberg

On 26 March, the government published its proposals for updating the UK's gambling laws.

The White Paper A Safe Bet for Success - Modernising Britain's Gambling Laws will first be considered by the Culture, Media and Sport Committee of the House of Commons and should form the basis for draft legislation.

The proposals largely follow the recommendations of the Gambling Review Body, headed by Sir Alan Budd, which reported last July.

The results of the public consultation carried out by the department on the recommendations were published with the policy paper earlier this month (see [2002] Gazette, 5 April, 8).

The government may modernise the law in many areas, including casinos, gaming machines, bingo, pools, bookmaking, lotteries (other than the National Lottery) and on-line gambling.

The committee's initial inquiry will focus on the impact of government proposals on the National Lottery, as well as changes to regulation of gaming machines and the casino industry.

The recommendations are far-reaching.

They contemplate: wholesale deregulation of the casino industry, including the derestriction of previously casino-free areas; the removal of the demand criterion in licence applications, and the liberalisation of casinos themselves; allowing mixed gambling venues, live entertainment, unlimited stakes and prize machines, and alcohol on the gaming floor; the removal of the 24-hour rule (which prevents punters gambling at a casino until 24 hours after they have joined); and the relaxation of restrictions on the use of credit cards.

The government may also allow certain areas, in particular seaside towns such as Blackpool, to redevelop into 'Las Vegas-style' resorts.

Similarly far-reaching and liberal reforms are proposed for the other sectors in the industry, providing, it is hoped, a springboard for the UK to assume the primary position in this expansive global market.

The proposed reforms include widespread changes to the licensing system, with local authorities taking over from magistrates, and the establishment of a Gambling Commission to oversee all gambling and to issue enforceable codes of sociable responsibility to ensure that criminal activity is minimised and that minors are protected.

Assuming that deregulation is to follow, lawyers should derive considerable benefit.

Not only might there be new areas for development, such as licensed on-line casinos, but existing areas will also expand.

The likely explosion in the number and variety of gambling venues and changes to the licensing and regulatory framework will provide much licensing and advisory work.

Property and planning lawyers should find the sector increasingly active as operators develop new entertainment venues; litigators may find themselves pursuing gambling debts (likely to be made enforceable for the first time in more than 150 years); and corporate finance lawyers are likely to find that operators require finance as they seek to exploit the expanding market.

In short, gambling is a sector which is about to explode and lawyers would be well advised to position themselves accordingly.

A widely held concern is that legislation should arrive quickly enough for the UK to benefit from the boom in on-line gambling.

The on-line sector must provide strong regulation to engender confidence going forward.

For the UK to take the lead in providing such a regulatory framework is an exciting development.

However, it would be a shame for responsible operators who wish to submit to regulation to establish themselves elsewhere if we do not act quickly enough.

Anthony Wollenberg is a partner and betting and gaming specialist at the London office of US law firm Steptoe & Johnson