Casino gamble sets island back £500K

THE States has wasted £500,000 in its search for a casino operator. Although there are slim hopes that an operator could be found help to fill the black hole, the Commerce and Employment Department has agreed that a search for a venue to replace St Pierre Park Hotel will end.

'For the time being 'the department' has decided not to take any proactive steps to invite alternative hotel casino projects,' it said in a statement yesterday.

But it was still interested in discussing the idea if any party wanted to raise it.

Now States finances have to bear a £500,000 hit. The costs of pursuing the casino idea were to be recouped from licence fees at some £400,000.

And the Gambling Control Commission, set up to regulate casino activities in the island, currently owes the States £100,000 on a loan agreed when it started. This cash is almost certain to have to be written off.

The hunt for a casino operator, initially to build a new hotel, started in 1998 when the States approved the principle of economic enablers for the visitor economy.

The tender process for a licence, launched in 2002, attracted 19 inquiries, five visits to the island from potential operators, but only one formal application, from St Pierre Park, which agreed to operate the licence as part of a £13m. redevelopment.

But then the hotel's owner, CI Traders, pulled the plug on the development and has formally relinquished its concession.

Commerce and Employment said that the idea of a casino was in keeping with States resolutions on corporate tax reform, with the intention of a high priority being given to initiatives favourable to the development of economic sectors outside of finance.

It will consider this issue more fully and look for other opportunities.

The States will discuss the future of the commission at its meeting this month, but is likely to suspend rather than disband it.