Britain's first super-casino should be located in Blackpool, according to the Centre for Cities, an urban research unit based at ippr. The Independent Casino Advisory Panel (CAP) will announce the location of the super-casino tomorrow (Tuesday), and the decision is thought to be between Blackpool and Greenwich. The Centre says that Blackpool will benefit most from the potential regeneration boost that the super-casino could provide, but warns that casino-led urban regeneration is an untested strategy in the UK and not guaranteed to succeed.

The Centre for Cities says that the super-casino is a good match for the Blackpool economy, particularly given that the number of tourists visiting the city is currently declining by 1.5 – 2 per cent every year. By contrast, the Centre says that Greenwich already stands to benefit from the 8,000 jobs that the Olympics are likely to create, and has lots of regeneration options available to it.

But the Centre for Cities warns that whichever area is chosen, casino-led urban regeneration is an untested strategy in the UK that comes with significant risks. The Government's own evidence says that casinos are likely to deliver mixed results. The super-casino may draw greater numbers of tourists to the host city and create some new jobs, but it may also drain money away from local non-gambling businesses, leaving them vulnerable. Problem gambling is likely to increase.

The Centre for Cities recommends the following steps are taken by the winning area, in order to maximise the regeneration potential of the super-casino. The winning location must:

• produce a clear forward strategy - 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;
• use training and employment agencies – such as JobCentre Plus, local ‘Learning and Skills Councils' and colleges – to link local people to casino jobs;
• provide advice to local businesses to help them benefit from the casino; and
• 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.

Max Nathan, Senior Researcher at the Centre for Cities, says:

“We think Blackpool deserves to win. It needs the regeneration boost more – and East London will get 8,000 Olympics jobs in a few years' time. But getting a super-casino is not like winning the jackpot – the super-casino will not deliver a magical transformation to the winning area.

“The evidence says big casinos deliver mixed blessings. They may not create that many new jobs, problem gambling is likely to increase, and the tax revenues will go straight to the Treasury. Whoever wins needs to link local people to the new jobs, and take steps to deal with any social costs. We think the casino operator should pay for some of this – via a levy set by the local authority.”

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 Independent Casino Advisory Panel (CAP), led by Professor Stephen Crow, will announce the final decision as to where the super-casino will be located on Tuesday 30 January 2007.

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 are Greenwich (the Dome), Cardiff, Blackpool, Glasgow, Manchester, Newcastle and Sheffield. The frontrunners from these seven are thought to be Greenwich and Blackpool.

The Blackpool bid
The Blackpool bid focussed on the decline of Blackpool as a tourist resort. Local leaders argued that the large number of jobs that the casino would create, and the accompanying boost to tourism, would mean that the economic benefits would reach the poorest sections of the city.

Blackpool city council argued that the project could save a town that no one has wanted to invest in “for decades”. They have argued that the project would create 2000 jobs and generate £2bn of investment.

The Greenwich bid
The Greenwich bid concentrated on the need to provide employment opportunities for the existing and new communities in the area. It cites the fact that Greenwich, and the neighbouring Boroughs of Tower Hamlets, Newham, Hackney and Waltham Forest, have the worst employment rates in the UK.

The bid argued that the Millennium Dome development is of vital strategic importance for revitalising the economy of Greenwich, the Thames Gateway and London. It also contends that Greenwich offers a strategically significant and dynamic location for a regional casino and because of this a unique testing bed for social impact.

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.