Appeal fails over casino project

A JUDGE has given her reasons for rejecting a developer’s application to run a Las Vegas-style entertainment and casino complex in City Square, Leeds.

Developer Waterimage applied for a gaming licence for the disused Majestyk nightclub, which was to be turned into a 14m gambling, cabaret and entertainment complex and re-named Majestic.

The firm appealed against a 2008 decision by magistrates to reject its licence application. Magistrates made that decision on the grounds that there was not enough demand for another casino and that another Leeds casino the Alea, in Clarence Dock, had ample facilities to provide entertainment.

Waterimage directors had argued that other casinos in the city were not providing the kind of live entertainments that they were proposing, despite earlier promises to do so.

They argued that their own licence application had failed because the city licensing committee had a false impression of entertainment offered by the Alea.

Yesterday Judge Jennifer Kershaw, sitting with two magistrates at Leeds Crown Court, rejected the appeal.

In a 35-page judgment, Judge Kershaw said: “We find the current casinos provide something for every gamer, the Majestic does not add to that gaming provision, there is significant spare capacity...the applicant has failed to establish unmet demand.”

It added: “More competition against the background of no unmet demand presents the risk of undermining present casino provision to the disadvantage of the gaming public by spreading gamers even more thinly across establishments.”

She said a significant part of what was being proposed at the Majestic “does not constitute gaming facilities within the meaning of the 1968 Gaming Act, and does not add anything in gaming terms to the available gaming facilities in Leeds”.

The Waterimage application was an application under the 1968 Act, which was replaced by legislation in 2005.

The court heard that industry statistics suggest that existing casinos in Leeds are operating at around 50 per cent of their capacity.

Judge Kershaw quoted from previous evidence given by a representative of LCI, which operates the Alea casino.

Patrick Hayward, on behalf of Alea, had told an earlier hearing that the casino operator’s intention had been to provide a range of entertainment at Alea, including cabaret and a comedy club, but this had not happened.

Mr Hayward said the entertainment plans had been shelved through economic necessity, namely substantial losses sustained by Alea, which he quoted as 5.6m losses in 15 months, against a projected loss of much less.

Judge Kershaw ruled that there was no evidence to suggest that LCI had attempted the deceive the court about their entertainment plans for the Alea.

Mr Hayward said he had considered the Majestic entertainment proposal and he did not think there was a demand from Leeds gamblers

He described having mixed success with tribute nights and dinner/show packages where people were reluctant to spend 22 on the package.

Judge Kershaw concluded that there was merit in the Majestic plan, as it would restore a fine building, enhance City Square, and provide training and employment and investment in the Leeds economy.

“These all have merit and would all no doubt be welcomed by many for good reasons, but those reasons are not to do with gaming. They are all matters of public interest to the city of Leeds, but the benefits...could equally well be generated by some other use of the building not involving provision of gaming facilities where none are demanded.”