Cross-party MPs call for casino closure rethink as furlough scheme winds down

A group of 13 cross-party MPs have requested the government allow casinos to reopen across England.

Casinos were dealt a body blow earlier this month when the government removed casinos from the list of businesses allowed to reopen on 1 August.

The government’s climbdown, due to concerns over Covid-19, came just over 24 hours before they were primed to open their doors after being shut for more than five months, despite significant financial resources being spent to bring casinos in line with government guidance.

UK casino operators were then told they could reopen a fortnight later, a decision which has caused consternation among firms including Rank Group and Genting.

Casinos have been closed for nearly 5 months but want to get back to business and once again contribute to the economy. Having made the necessary preparations for re-opening safely and the threat to jobs, I’ve led a cross-party call on the Government to permit casinos to re-open. pic.twitter.com/hCeEA8q8NJ

— Sir David Amess MP (@amessd_southend) August 7, 2020

The MPs, led by Southend West representative Sir David Amess, said the decision has had a “hugely negative” impact on the businesses while putting more than 7,000 jobs across the UK at risk.

The group highlighted several protection measures which have been put in place by the sector, including screens, track and trace and other social distancing measures.

“The cost to the industry of taking staff off furlough, training, security and food and beverage is believed to be around £6m. This is on top of the £5m it costs casinos each week that they remain in a holding pattern waiting to reopen,” the group wrote.

“As furlough payments are phased out, there will be no flexibility for casinos to adapt to the new working and leisure environment and they now fear many closures and half of all jobs could be lost,” the letter concludes.

Rank Group CEO John O’Reilly has echoed the sentiments, describing claims that casinos could be higher risk areas as “misleading and dangerous”.

He said: “The blanket approach taken to keep casinos closed is not based on science, nor does it appear to be taken on economic grounds either as, in addition to the £1.5m losses Grosvenor are experiencing for every week we remain closed, this is costing the Treasury nearly £2m a week in furlough and a similar amount in lost gaming taxes.

“None of it makes any sense,” he added.

“The longer we are closed, the bigger the risk to jobs, as we are not in a position to benefit from the tapering furlough regime introduced by the Treasury to get everyone back to work by October.

“This has to be a two-week delay, not a longer suspension, otherwise the casino industry will find itself facing a whole heap of trouble.”

Casinos across England are set to reopen to players on 15 August.