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THE head of the world’s largest slot-machine company visited No 10 this year to lobby the Government to relax the gambling laws, The Times has learnt.
The meeting took place shortly before the Government announced major changes to the Gambling Bill to tilt the rules in favour of the giant US casino companies. The news of the meeting has caused uproar among opposition politicians and anti-gambling groups who say that they have not been given similar top-level access.
A spokesman for the Salvation Army, which is pressing for its own No 10 meeting, said that it was particularly aggrieved as the Department for Culture, Media and Sport told it yesterday that no such top-level meetings had taken place. Yesterday the Prime Minister, along with John Prescott, Tessa Jowell and Patricia Hewitt, were formally asked by one MP to disclose whom they had met from the US casino industry. Thomas Baker, chairman of International Game Technology (IGT), the world’s largest slot-machine manufacturer, visited Downing Street at the start of the year after the company announced plans for a massive expansion in the UK.
He met unnamed officials to discuss the Gambling Bill, published this week. After the visit he declared: “That’ll be a good market.” His company, which is based in Reno, Nevada, controls 70 per cent of the American market and is set to make hundreds of millions of pounds from British super- casinos.
The company stole a march on its competitors by pioneering new and more profitable technologies, including the latest coinless machines. Like the rest of the gambling industry, it lobbies aggressively to ensure favourable laws, tax regimes and planning regimes.
IGT mounted a particularly successful lobbying campaign in Philadelphia this year over new slot-machine legislation.
In June, the Government announced that it would be altering the draft Gambling Bill to allow the lucrative Category A machines in 30-40 “regional casinos”. These will mostly be run by foreign companies such as MGM Mirage and Caesars.
Previously the Category A machines were going to be limited to three or four “resort casinos”. The move has been greeted with dismay by the existing British industry, which fears it will lose out.
Downing Street denied that any favouritism had taken place. “What we would make absolutely clear is that we have listened to all sides of the debate and been completely even handed in our discussions,” said a spokesman.
The slot machine industry is worth $1 billion worldwide, with IGT making $390 million (£215 million) last year. The relaxation in the rules surrounding Category A machines has been a major boon for the US casino operators hoping to expand in Britain. Even accounting for the unlimited prizes, each machine generates around £50,000 profit a year.
Jonathan Lomax, of the Salvation Army, said that he was very disappointed at the news. “There is no public demand for this legislation and the Salvation Army would appreciate the opportunity to take that message to the very heart of government,” he said.
Julie Kirkbride, the former Conservative culture spokeswoman, yesterday tabled four written questions asking the Prime Minister and his colleagues whom they had met from the US gambling industry. She said: “I’m surprised that this company had access at such a high level given that there is no obvious British interest in this matter.
“In comparison the Salvation Army has had access at a very junior level and ministers should listen to all voices on this matter and be sensitive about the level that the representations are made.”
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