AEG begins building casino before licence decision
Tories concerned as AEG reveals it has begun work on casino before getting a licence
Wednesday, 23, Aug 2006 12:00
The company bidding to host Britain's first supercasino has begun building on the project before it has even been granted a licence, it has emerged.
News that Anschutz Entertainment Group (AEG) has begun work on the "shell" of the proposed casino at the dome prompted concerns that the firm may have had some private reassurances from the government that it would win the licence.
The Casino Advisory Panel is not due to reach a conclusion on which of the eight short-listed venues will be granted the supercasino licence until December.
However, a spokesman for the Department for Culture, Media and Sport (DCMS) dismissed the suggestions of preferential treatment as "complete rubbish".
AEG was mired in controversy earlier this year after it emerged that its billionaire owner, Philip Anschutz, had held numerous meetings with the deputy prime minister. John Prescott said he had nothing to do with casino policy and denied any conflict of interest.
But last night shadow culture secretary Hugo Swire noted: "It now appears that all the estimates of jobs from the sale of the dome trotted out by the government and AEG are all based on building a supercasino.
"Many people are now asking why would AEG take such a financial risk and actually begin construction of the casino unless they had received assurances that they would be successful in the bidding process.
"This raises yet more questions about the government’s relationship with those wanting a casino at the dome."
In documents submitted to the Casino Advisory Panel ahead of a public hearing next week, AEG states that it is "in the process of constructing a shell, which will be able to house the casino if the application for a license were to be successful".
The firm says this pre-planning would allow it to deliver the casino project within 18 months of being granted a licence.
The documents also contain a veiled threat that if AEG does not secure the licence, much of the regeneration planned for the Greenwich peninsula, which should see the creation of thousands of homes and businesses, would not go ahead.
"The full scheme is dependent on the inclusion of the casino as an integral and complementary leisure activity, increasing footfall and cross-funding other elements of the scheme including the hotel, exhibitions and theatre space," they say.
AEG adds: "Without the full development, the site would be predominantly housing - we will not have the sense of 'place' or 'destination' needed to drive regeneration and employment."
Mr Prescott defended his meetings with Mr Anschutz on the basis that the American was a key player in the regeneration of east London, and as such deserved his time.