Bidding begins for new casino in resort's regeneration gamble

Scarborough Council has now become one of the first local authorities in the country to launch the bidding process.

Scarborough was one of just eight local authorities in Britain to be granted a licence to host a "small casino" as defined in the Gambling Act 2005.

But building work stalled amid fears the Government programme would be unsustainable in the wake of the economic downturn. Now a report is being put before the council cabinet on March 16 to kickstart the bidding process for the new development, which would have a minimum gaming area of 750 square metres with a maximum of 80 category B gaming machines, featuring a jackpot of up to 4,000.

Cabinet member for tourism and culture Coun Janet Jefferson said: "This is something that has been on the cards for more than four years.

"All the major players in the town have been consulted.

"But to residents there is a concern as to whether the town could accommodate another one. Everybody comes on holiday for different things and casinos are not for everybody.

"We are a tourist resort which attracts people from all over Britain and all over the world.

"We appeal to all different needs and Scarborough has been voted the most enterprising town in the country.

"This is the start of a bidding process and the building could be anywhere."

Following the 2005 Gambling Act the Government chose eight local authorities for a small casino licence and eight for a large casino licence.

Newham Council started was the first to start the bidding process for a large casino in February and Scarborough Council is next in line.

Council officers on the project say they will benefit from the early bid as casino operators have yet to make investments in other areas.

The 2005 Gambling Act requires all casino operators bidding for the site to undergo a fit and proper person's report and to demonstrate the regeneration benefits of their development.

Cabinet member for housing, public health, property maintenance and sustainability Jonathan Dixon said: "We have undergone extensive public consultation on this and the bidding process has only just begun.

"We will look closely at the proposals that come forward and what people have to offer and what the benefits will be." The bidding process will begin next month and the council says it will take a year to complete.

Council project manager for technical services Alex Richards said: "We cannot definitively say how many applications we will receive, but as one of the first of only 16 authorities in the UK to be offering these licences it is anticipated that there will be interest.

"Scarborough has been working with local stakeholders and the other 15 authorities that have been awarded these licences to ensure that applicants offer the best possible regeneration benefits to the town.

"We will be looking for applicants to offer high quality economic regeneration initiative in support of their proposals; we will also be closely scrutinising the measures that will be taken to support and protect the vulnerable."

The Government announced in 2008 that it would scrap the supercasino promised for Manchester but continue with the 16 large and small casinos.

The programme has been criticised for the amount of regeneration benefits it will actually bring, in the wake of the recession and growing competition casinos face from online gambling.