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Mismanagement of Casino Gaming

NCJ Number
81208
Journal
British Journal of Criminology Volume: 21 Issue: 1 Dated: (January 1981) Pages: 79-86
Author(s)
D Miers
Date Published
1981
Length
8 pages
Annotation
This article reviews efforts by major casinos in London, England, to maintain their profits in face of inflation and dwindling markets in the 1970's. In addition, it examines recent gambling control efforts influencing casino management and licensing.
Abstract
London's lucrative casino industry is dominated by Ladbroke's and the Coral group. Ladbroke's took off in 1973 with the devaluation of the pound and the oil boom which brought a substantial number of Middle Eastern punters, or gamblers, to London. By 1978, however, profits began to decrease, and Ladbroke's implemented the Unit Six operation to identify punters who used other casinos regularly and entice them into their clubs through complimentary dining and other facilities. The Coral group also entered the market in the early 1970's, but experienced a series of internal frauds which limited profits. They used a common technique for maintaining a regular clientele -- providing credit for gambling which is expressly prohibited by the Gambling Act. Ladbroke's problems began in July 1979 when the Westminster magistrates refused to renew the licenses of three London casinos because of objections from police and a competitor who had been targeted by Unit Six. Immediately before Ladbroke's appeal to the Crown Court in November, Coral's four casinos were raided by the police. Although many charges are still outstanding, Coral has agreed to a takeover by Grand Metropolitan which has extensive casino holdings. The Gaming Board feels that the price to be paid for legitimate financial success in this industry is constant vigilance by the authorities. The Board wants the 1968 Act amended to require regular renewals of certificates of consent. The Board would also like some control when the company holding the consent certificate is taken over by another company. The Gaming Board has emphasized the need for an overall authority for gambling instead of the current fragmented arrangement. A critical issue is appropriate sanctions for fraud and illegal practices, since owners claim that disqualification causes hardship for employees and is unfair to stockholders and punters. The Gaming Board urges strictly the rules on pain of being closed because financial rewards are great and opportunities for abuse endemic. The article contains 11 footnotes and 9 references.

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