A LABOUR peer involved in scrutinising the government’s controversial new gambling laws is closely connected to a company that lobbies on behalf of three giant American casino operators, it has emerged.

The disclosures about Lord Faulkner of Worcester, who is tipped to become a Labour minister in the next reshuffle, have brought concerns over a potential conflict of interest. All three American firms plan to build casinos in Britain after the proposed liberalisation of gambling comes into force.

Pressure will now be renewed on ministers to explain fully a series of links between the government and American casino companies. The ministers are trying to push the legislation through parliament before the general election which is expected in May.

The new law would allow the construction of US-style super-casinos with hundreds of gaming tables and slot machines.

Faulkner was a key member of the joint Lords and Commons committee that last year examined the government’s plans for gambling reform and gave them the go-ahead with only minor changes. Faulkner also has close links to No 10.

He is a paid employee of Incepta, a public relations and marketing company, which he declares in the Lords register of interests. What is not declared is that Incepta owns Citigate Public Affairs, the lobbying firm that works for the three US gambling companies.

Faulkner, one of the founders of modern lobbying in Britain, sold his public affairs firm to Incepta in 1997. This later became Citigate Public Affairs.

The casino operators — Caesars Entertainment, MGM Mirage and Kerzner International — have all become clients of Citigate since Faulkner’s committee scrutinised the legislation.

Last night Faulkner said he was “a strategy adviser” for Incepta but did not do any lobbying. He was “vaguely aware” Citigate is now employed by the three big casino operators.

Ministers have already been forced to scale down the gambling liberalisation. When the plans were outlined last October there was a public outcry over a possible explosion of problem gambling with the prospect of dozens of giant casino resorts springing up around the country. The number of such developments is now likely to be restricted to eight.

Since this curb was announced, it is understood that the US companies have stepped up their lobbying. A limit will now be imposed on the number of small and medium-sized casinos, as well as the largest type — because of American pressure, say British operators.

Faulkner said last night: “I don’t do any lobbying work for Incepta at all. I’m just retained by the holding company. I don’t have any connections with Citigate any more.”

When asked if he was aware that Citigate had won contracts for the three American companies, he said: “Vaguely, but again it wouldn’t be something I would get involved in.”

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