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Overview & Scrutiny Management Board 26 October 2007 Casino. Scrutiny. To consider the motion referred by Council to the Board

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Overview & Scrutiny Management Board

26 October 2007

Casino


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Scrutiny

To consider the motion referred by Council to the Board

“This Council considers that a casino built at the NEC or indeed in any other part of the Borough will not be in the interests of the Borough and should therefore be resisted.”

Recommendations to Full Council


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Programme

  • Overview of process

  • Proposals to the Casino Advisory Panel

  • An independent regeneration perspective

  • Regional opportunities and benefits

  • Considering social impact – positive and negative

  • Business perspective

  • Gambling Prevalence Study

  • Licensing Policy – local control and management

  • Police perspective

  • Interested parties’ views


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Context

Local and regional priorities

  • Urban renaissance

  • Sustainable economic development and regeneration

  • Closing the gap of inequality

    Delivered through

  • Business investment and growth

  • Key sectors – tourism & leisure

  • Key assets – NEC

  • North Solihull Regeneration – jobs; access to opportunities


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Overview & Scrutiny Management Board

26 October 2007

Process Overview


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Process

  • Gambling Act 2005 – new licensing regime; new casinos in specified locations

  • 3 Licensing objectives

    • Crime and disorder

    • Fair and open

    • Protecting children and other vulnerable people

  • Casino premises licences to be awarded after two-stage process

    • Stage 1 (Regulatory) – could a premises licence be issued?

    • Stage 2 – Greatest benefit test


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Process

  • Location order rejected by Lords

  • July 2007 – Ministerial Statement and letter

  • August 2007 – letter from Leader of the Council

  • Council’s Role

    • Licensing authority

    • Power to resolve not to issue (Section 166)

  • Section 166 Resolution

    • Full Council

    • Restrictions

    • Consider consultation


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Process

  • Cabinet January 2005 – in principle approval - NEC

  • Cabinet February 2006 - approval

  • Council March 2006 - approval

  • Submission March 2006 – Regional/Large Casino

  • Provisional Shortlist – May 2006

  • Follow-up Submission – August 2006 – NEC

  • Response to CAP Qs – September 2006 - Large Casino

  • CAP Shortlist – October 2006

  • December 2006 – 3 Year Statement of Licensing Principles

  • Cabinet March 2007 – response to draft regulations; initial views on local criteria

  • Final Report – January 2007

  • Council April 2007


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Overview & Scrutiny Management Board

26 October 2007

Casino – Solihull MBC Submission


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Background

Cabinet January 2005

  • New legislation

  • Potential opportunities – leisure development; regeneration; new infrastructure; investment

  • Tourism & Leisure in Solihull: 22,000+ jobs; NEC; Airport

  • NEC Group impact: £711m spend in 12 months; 21,844 FTE jobs

  • Strategic importance of NEC – local, regional economic development & regeneration

  • In principle support - regional casino at NEC


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CAP – Call for Proposals

Criteria – best possible test of social impact; need for regeneration (employment, social deprivation); willing to license

Issues to be addressed in proposals

  • Type of area

  • Social impact – positive and negative

  • Need for Regeneration

  • Willingness to Licence

  • Probability of Implementation

  • Regional and Local Context

  • Community Benefits

  • Unique Characteristics


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Solihull Submission

Key Messages/Issues

  • Partnership – support from Birmingham CC

  • Scale of regeneration impact – local, sub-regional and regional

  • Part of wider entertainment/leisure development

  • Opportunity to test social impact

  • Central location, excellent connectivity

  • Strength and depth in visitor economy

  • Track record of delivering major developments

  • Benefits beyond Solihull – B/ham & WM


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Type of Area

  • Concentrations of deprivation and worklessness

  • Sub-region – labour market

  • Major regeneration schemes: North Solihull; Regeneration Zone; Eastern Corridor


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Type of Area

  • Role in sub-regional and regional economy – Airport, NEC, Business Parks, Land Rover, Town Centre – recognised in RES and RSS

  • Tourism and Leisure – key growth sector; national and international visitors to WM; driver of WM Visitor Economy; integral part of Economic Development Strategy

  • Priorities – creating accessible jobs; improving the skills base; sustainable diversification and growth – growth sectors, reduced dependence on manufacturing


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Type of Area

  • Central location

  • Connectivity – 4.5m visitors p.a. to NEC; 35.4m people in 120 minutes drive time

  • Existing infrastructure – rail, road

  • Local Transport Plan – Bus and Metro


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Social Impact

Positive and negative

  • Employment and training initiatives

  • Problem gambling

  • Crime and Anti-Social Behaviour

  • Impact on communities

    Responses

  • Location criteria

  • Licensing Policy

  • Community programmes

  • Partnership approach


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Need for Regeneration

  • Worklessness, concentrations of need

  • Dependence on manufacturing - need to diversify locally and regionally

  • Catalyst for new investment

  • Securing long-term future for the visitor economy - supporting the NEC

    • vital to delivering N Solihull Regeneration; to Solihull and WM economy;

    • facing increasingly aggressive global competition

    • need to diversify and enhance visitor offer: “Destination NEC”

  • Risk of NEC becoming uncompetitive – “worst case scenario” – impact on jobs and spend


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Willingness to License

  • Cabinet and Council resolutions

  • Survey commissioned by NEC: 87% thought casino gambling was acceptable; 10% unacceptable

  • Support from Birmingham CC and AWM

  • Business organisations: Birmingham Chamber; Birmingham Forward; Institute of Directors

  • Support from WM Police – tremendously positive; need to work to address crime and disorder concerns up front

  • Support from Fire Service – jobs; address deprivation – reduces crime and disorder


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Willingness to License

“Millions of visitors…..many from abroad find themselves with little to do outside of an exhibition, a casino could capitalise on this”

“It will help the NEC Group to continue to expand and win more shows. It will help create a range of leisure facilities for the visitors to the NEC to enjoy along with West Midlands residents”


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Probability of Implementation

  • Demand from tourists and from WM

    • 4.5m visitors to NEC; 19m to Birmingham – many from outside Solihull and WM

    • Catchment: 9m in I hour; 35.4m in 2 hours

    • Maximising “out of region” spend

  • A critical mass of tourism and leisure activity

  • No direct local competition

  • Interest from NEC and operators

  • Location criteria


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Probability of Implementation

Location criteria

  • Maximum benefits for visitor economy

  • Help enhance national and international profile

  • Well served by transport infrastructure

  • Suitable location for national and international visitors

  • Not be directly in a residential area

  • Contribute to Community Strategy; Economic Development Strategy, North Solihull Regeneration

  • Consistency with planning policy


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Regional and Local Context

Delivering regional and local policies

  • WMES: tourism, Birmingham and NEC

  • RSS PA 10 – further development of key assets – NEC; complementarity

  • WM Visitor Economy Strategy – business tourism; key destination and gateways

  • EBNSRZ ZIP – connecting people to opportunities

  • EDS – business tourism; supporting the NEC

  • UDP – support the further development of the NEC; complementary facilities

  • NS Strategic Framework – role of NEC; jobs


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Community Benefits

  • Section 106 Agreement

    • Employability, outreach and transport initiatives

    • Debt counselling

    • Promoting the area for visitors and investment

  • Local employment and supply agreements

  • Childcare facilities

  • Community engagement

  • Long-term partnership approach

  • Corporate Social Responsibility


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Unique Characteristics

  • A strong partnership between LAs

  • A publicly owned venue – major regional and national asset

  • Central location

  • Outstanding connectivity

  • Accessible to EBNSRZ residents seeking work

  • Self-contained site – enabling the risk of negative social impact to be minimised


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Advantage West Midlands

  • Solihull proposal particularly strong – social, economic and regeneration impact

  • Most likely to manage and contain any adverse social impact

  • Accessible location, “out of region” visitors – larger regional economic impact

  • Strong regeneration impact – proximity to EBNS

  • Ability to leverage other investment


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Final Report of CAP – Solihull Proposal

  • Exceptional connectivity – road, rail, air

  • Communities/neighbourhoods subject to acute deprivation – RZ designation by AWM due to extent of difficulties

  • WMES and RSS – encourage tourism, particularly at NEC

  • Support of AWM and WMRA – letters to CAP


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Final Report of CAP – Solihull Proposal

  • Experience in dealing with ASB, crime & disorder, crowd control at NEC

  • Commitment to monitor social problems

  • Considerable experience of linking people to jobs – community benefits Tourism – key sector; over 4m visitors p.a.

  • Consistent with regional policy

  • Market interest

  • Support of Full Council and Birmingham CC

  • Regional significance - pivotal role of NEC


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Overview & Scrutiny Management Board

26 October 2007

An independent regeneration perspective

Jon Ladd

Chief Executive

British Urban Regeneration Association


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Overview & Scrutiny Management Board

26 October 2007

Regional Opportunities and Benefits

Nigel Russell

Tourism Policy & Research Manager

Advantage West Midlands


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The regional leader for developing economic prosperity

Economic Opportunities Available from Casino Development

  • Comments from an economic development perspective

  • Comments related to the particular benefits of an NEC site


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The regional leader for developing economic prosperity

Economic Opportunities Available from Casino Development

Potential Benefits

  • New jobs and expenditure

    • Construction

    • Operation

    • Supply chain

  • Regeneration benefits


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The regional leader for developing economic prosperity

Economic Opportunities Available from Casino Development

Potential Benefits

  • Merits of an NEC location

    • Complements existing facilities/ business tourism product

    • Part of long term development plans

    • Existing visitor/user base

    • Builds competitive position

    • Minimal displacement


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The regional leader for developing economic prosperity

Economic Opportunities Available from Casino Development

CONCLUSION

  • A large casino, but region-wide implications


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Overview & Scrutiny Management Board

26 October 2007

Considering Social Impact


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Social Impact

CAP guidance – positive and negative

  • Economic and regeneration: jobs, employability initiatives, community benefits

  • Community cohesion and sustainability

  • Recent assessments of local impact of gambling

  • Policies/procedures to manage

  • Partnership working to support policies and activities


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Social Impact

Economic and Regeneration

  • Est. 900 jobs (direct, indirect, construction and induced) – not just casino/gaming - many entry level; hospitality, retail ,support

  • Employment initiatives with financial support; outreach; “hub” – North Solihull and EBNS

  • Local employment and purchasing – construction and “Meet the Buyer” models

  • Childcare, transport

  • Competition (tender) – opportunity to select most advantageous proposal (local criteria)


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Social Impact

Economic and Regeneration – Wider Impact

  • Creating/safeguarding jobs – NEC; in Tourism & Leisure

  • New business opportunities

  • Boost to visitor economy – Solihull and wider

  • Making the area more attractive to investment

  • Sustain and grow the NEC – driver of regeneration and economic development

  • Contributing to delivering wider regeneration and urban renaissance programme in North Solihull and East B/ham – Regenerating North Solihull; EBNS, Eastern Corridor


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Social Impact

Concerns

  • Crime and disorder implications; Increase in problem gambling; Increase in debt

    Managing potential negative impact

  • Licensing Policy and selection criteria – require industry best practice; highest standards for social responsibility and responsible gaming – learn from the best and insist on it

  • Early involvement of CDRP – design out crime

  • Section 106 funding to support debt counselling

  • Community engagement, dialogue, awareness raising and support

  • Self-contained venue – “destination”; part of wider entertainment and leisure facility


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Social Impact

Examples of good practice

  • Regular staff training and awareness – security and gaming floor employees: identifying problems, underage visitors, ability to provide clients with detailed information

  • Provision of information in gaming areas – sources of advice and support; win-loss odds on games

  • Ability for gamblers to self-exclude

  • Responsibility in serving alcoholic drinks


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Social Impact

Managing Social Impact

  • Require best practice

  • Ensure commitment to highest levels of social responsibility

  • Partnerships – Police and CDRP; Gambling Commission, Gamcare, debt advice, mental health advice

  • Monitor and review

  • Ongoing dialogue and community engagement


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Overview & Scrutiny Management Board

26 October 2007

Business View

Jerry Blackett

Chief Executive

Birmingham Chamber of Commerce & Industry


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Overview & Scrutiny Management Board

26 October 2007

Prevalence Study and Licensing Policy


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Gambling Prevalence Study

  • Published September 2007 (builds on 1999 survey)

  • Measure prevalence; estimate problem gambling and activities

  • Overall participation - form of gambling – 68%

  • Rate of problem gambling 0.6% - same as in 1999 (before changes in legislation and increase in gambling products available)

  • Association between problem gambling and being male; parental regular gambling; poor health; being single

  • Problem gambling – highest prevalence – spread betting (14.7%); fixed odds betting terminals (11.2%); betting exchanges (9.8%)


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Gambling Prevalence Study

Attitudes

  • More – than + gambling harmful

  • people have a right to gamble

  • rejection of total prohibition

    Inconclusive


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Licensing Policy

  • Objectives

    • Prevention of crime and disorder

    • Public Safety

    • Prevention of Public Nuisance

    • Protection of children from harm

  • Use full range of powers; engage all relevant responsibilities

  • Partnership arrangements


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Licensing Policy

Awarding a Premises licence – considerations

  • Disturbance, amenity and environment

  • Transport and pedestrians

  • Crime and disorder

  • Public safety and fire safety

    Applicant sets out the steps it will take to promote the licensing objectives


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Licensing a Casino

  • Premises Licence – SMBC

  • Operating Licence and Personal Licence (management) – Gambling Commission

  • Compliance with Gambling Commission’s Mandatory Code of Social Responsibility

    • Reducing risks posed to vulnerable people

    • Information, advice and assistance


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Licensing a Casino

Premises Licence – two-stage process

  • Regulatory test

  • Competition held by local authority – local criteria, concerns and benefits

    • Employment and regeneration potential

    • Design

    • Financial commitments to local projects

    • Location

    • Facilities

      Principles must be set out in Statement of Licensing Policy

      Planning permission also required – separate process


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Overview & Scrutiny Management Board

26 October 2007

Crime & Disorder Implications

Superintendent Scobbie

West Midlands Police


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Overview & Scrutiny Management Board

26 October 2007

Representations from Interested Parties


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Overview and Scrutiny Management Board

- A Casino Operator

Mike Nuttall

Managing Director Casinos - Ladbrokes plc


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2005 Gambling Act Casinos

Casino will be the catalyst for renewal and regeneration

“Will become major entertainment, leisure and gaming destinations providing an extensive range of facilities including hotels, conference facilities, restaurants, bars, entertainment and leisure attractions”

Stringent licensing conditions


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“Casino as the catalyst”

Anchor tenant e.g. John Lewis in Solihull

More and better: rooms/ restaurants/ bars/ attractions/ £

High expectations and delivery requirements from the Council

Casino becomes the focus

Concerns and negative expectations

Misconceptions


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“Major entertainment and leisure destinations”

Destination NEC - widen the appeal and catalyst for the NEC’s future

400,000 sq ft: 50% hotel

15% adult entertainment (4% gaming)

12% family/visitor attractions

10% bars, restaurants and retail

8% serviced offices

5% children's play area

High quality sustainable design and build

£100m initial investment

Up to 1500 jobs including construction


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“Stringent licensing conditions”

2005 Act two stage process: 1. Regulatory test

2.Greatest Benefit test

DCMS general principles

SMBC specific, targeted and accountable requirements

Awareness amongst community and stakeholders


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“Greatest benefit”

Targeted recruitment and employment

Deliver education, training and long term careers

Enhance the tourism offer

Ensure community liaison, consultation and partnerships

Monitor and test the social and economic impact

Responsible gambling through education, measurement and control

Regulatory compliance

Security and crime solutions

Landmark and sustainable design and range of facilities

Ongoing financial contributions to the NEC, community and council


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Summary

The casino is the catalyst

Major mixed development to substantially enhance the NEC/Solihull offer

Targeted and stringent licensing conditions

Substantial ongoing economic and social benefits



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