Casinos should be approved locally, say ministers

Executive decides local councils are best placed to weigh pros and cons

News, 12 September 2006

Scottish ministers have concluded that local councils are best placed to decide whether to allow new casino developments in their areas.

The announcement follows the publication of a research report on the social impacts of gambling and an assessment of the potential economic impact of a regional casino in Scotland.

The research findings will be sent to the UK's Casino Advisory Panel to consider while they evaluate proposals from councils for new casino licences.

The social impact research was carried out by Dr Gerda Reith of Glasgow University with the Scottish Centre for Social Research, while Scottish Executive economists undertook the economic assessment.

The social impact report's main findings are that:

The social costs of casinos tend to be exported to the areas where the gamblers who play them live: "resort" and rural casinos tend to have the lowest social costs relative to economic benefits, since the majority of their customers come from elsewhere.
In Scotland, small casinos and those located in urban or suburban areas would have the greatest potential for negative social impacts, particularly in areas already characterised by social deprivation.
All the proposed developments in Scotland (with the possible exception of Dumfries and Galloway) could be considered urban or suburban casinos, though all will attempt to attract large numbers of visitors.
Studies from Australasia and the US have found that the prevalence of problem gambling has remained stable or declined over time despite the introduction of casinos and other forms of gambling. This has been attributed to the provision of public awareness campaigns and treatment services.

Enterprise Minister Nicol Stephen said the Executive had commissioned the research because evidence on the impacts of gambling in the UK, and particularly Scotland, was very limited. The research would help local authorities and the public to better assess benefits or otherwise of such developments.

"Having considered the potential economic benefits and possible negative impacts of new casino developments, we recognise that proximity to casinos can increase rates of problem gambling but the research has suggested there are strategies that can be used to address and minimise problem gambling."

Mr Stephen said the Executive was not opposed in principle to new casino developments in Scotland, subject to there being significant demonstrable regeneration benefits and appropriate safeguards to mitigate the potential negative impacts.

"There are several Scottish councils keen to pursue new casino developments under the new UK legislation because of the perceived economic and regeneration benefits. We believe that councils are best placed to consider the pros and cons of pursuing such developments."