Regeneration requirement row near Olympic site as losing Newham bidder asks for judicial review
A legal dispute over the awarding of a high-profile casino licence near the Olympic site in east London has raised concerns over the strategy of using gambling to stimulate urban regeneration.
The decision by Newham council to grant the contract at Westfield Stratford City shopping centre to the entertainment firm Aspers rather than two rival bidders is to be the subject of a judicial review.
One of the losing bidders, Great Eastern Quays Casino (GEQ), has lodged an application challenging the council to explain why the process was held "behind closed doors" and whether sufficient funds will be allocated to develop homes and enterprise in a deprived area of the capital. The other unsuccessful bidder, Apollo, is also considering launching a judicial review.
Hull council recently awarded a casino licence in a development that incorporates a 185-bedroom hotel, a residential apartment block and restaurants. At least 14 more casino licences are due to be handed out under the 2005 Gambling Act. When the Labour government authorised the granting of a new series of licences one of the arguments used was that they should be given to poorer boroughs that would benefit from an influx of new jobs, opportunities and residential developments.
GEQ claimed that its offer to pump £250m into the local economy was unreasonably spurned by the council.
Fergus Kinloch, director of City & Eastern, the developer of the site which incorporated GEQ's casino, said: "We firmly believe that Newham council failed to comply with the proper processes relating to the bid.
"Regeneration, which by law should lie at the very heart of any successful casino bid, quite simply appears not to have been taken into account, or worse, swept under the carpet by Newham council when deciding on which bid to select. It is now clear to us that any proposal that was genuinely regenerative never stood a chance of winning the competition.
"The Newham casino bid is of national significance in that with 14 other casino licences yet to be awarded across the country other councils and casino operators will be following the process with great interest, particularly with respect to the regeneration requirements of any casino bid as set out in the 2005 Gambling Act." A Newham council spokesman said the council's decision-making process had been "robust and fair. We are aware of the legal challenge and are confident that all aspects of the process will stand up to scrutiny."
Aspers, a joint venture between the gambling company Aspinalls and an Australian media group, did not respond to Guardian inquiries. But a statement on its website said: "The 65,000 sq ft casino will be located in the Central Arcade at the new Westfield Stratford City at the heart of Newham and will be the first of its kind to open in the UK, creating up to 440 new jobs. Aspers properties deliver real economic and social benefits to local people through jobs, training and investment and in this way they contribute to sustainable urban regeneration." Damian Aspinall, chairman of Aspers, said: 'We are delighted that, after a detailed and comprehensive assessment, Newham's licensing committee has recognised that our bid delivers the best operator in the best location within the best development.' "
Aspers currently operates Aspinalls club in Mayfair and three Aspers casinos in Newcastle, Swansea and Northampton.