Euro’s Impact on UK’s Casino Industry
The UK’s adoption of the Euro would have a profound impact on its land-based casino industry. The use of the Euro will stimulate demand and draw direct investment while lowering business expenses. Currently, the UK’s land-based casinos (LBC) are facing major changes with new government liberalizations. The adoption of the Euro complements the opening of the industry.
Government Liberalization
UK’s Gaming Act of 1968 erected tough restrictions on LBCs. Prior to 1968 the industry was essentially unregulated. This legislation enacted a number of restrictions and limitations on the number of slot machines, entertainment venues, and advertising outlets (Wright, 2). The law also stated that alcohol could not be served after midnight, casinos could not be open beyond 4 a.m., and debit cards could not be accepted. In addition maximum payouts were limited to £250, and 48-hour waiting period were introduced for new members. (This severely limited tourist gambling.)
While prohibitions on marketing and the use of live entertainment were maintained, the new legislation relaxed the others restrictions. The maximum number of slot machines was increased from two to ten; alcohol serving times were extended to 2 a.m. (3 a.m. in London), debit cards were allowed, maximum payouts were increased substantially, the 48-hour period was reduced to 24, and thirteen new permits were granted for new casinos (based on population). These liberalizations are making the industry more attractive to consumers and investors; this new interest will be aided by the adoption of the Euro.
Porter’s Analysis
First, let’s look at the Euro will affect the competitive environment of LBCs. Supplier power will be reduced. The mai ...