Stake and chips

For the British casino industry, the currently proposed deregulation cannot come a moment too soon. With some changes already coming into effect, the legislation due to be enacted in 2004 looks likely to loosen the restrictions on the gambling sector. For the first time in 40 years, casino owners will be able to admit non-members without 24 hours' notice, to increase the number of slot machines in each establishment, to offer live Las Vegas-style entertainment, to serve alcohol on the gaming floor and, importantly, to advertise.

This all signals a huge turning point for the industry, worth an estimated £2.7m in gross turnover in 1999. With the relaxation of rules, the gaming industry stands to gain from significant expansion and development.

To succeed, however, it needs to appeal to a new audience. Currently, only 4% of the population in Britain frequent casinos, and those who do are older and predominantly male. The industry needs to draw in a younger, mixed audience, and introduce them to the attractions of gaming. In preparation, the industry has been investing heavily in new development and refurbishment - in particular, food service.

Most casinos provide some sort of food offering, varying from fine dining to snacks. The largest casino operator in the UK, Rank, has fine-dining restaurants in all its 32 Grosvenor casinos, as does Gala Casinos, of which there are 26 in the UK. Yet, according to Richard Sowerby, group sales and marketing director at Gala, the dining facilities are currently used by only 25% to 40% of Gala's guests. "The casino is the focus," he says. "Our restaurants are not a high-margin item but more an ancillary to add value to the business."

Gaming operator Rank, however, is set to break the mould with one of its most famous brands. Owner of Mecca Bingo, Grosvenor Casinos and Hard Rock Café, it opened the first Hard Rock Casino in Manchester last month. Another will open in London later this year, and other sites are being considered.

Based in The Printworks, in a leisure complex in the heart of Manchester, the Hard Rock Casino is putting much more emphasis on eating and entertainment in a bid to bring in new customers. It is hoped that the concept will slash the average age of attendees by 10 years, to as young as 25, and bring in the girls as much as the boys.

"We are taking all the values of the Hard Rock Café over to the casino and, being located where it is, in a high entertainment environment of pubs, bars and nightclubs, it will be attractive to a younger crowd," says Sarah Wilson, Hard Rock brand manager. "We are lucky it's a very strong brand. We are offering the same sort of food, such as good-quality burgers, and people don't have to book. It is young and funky."

Nigel Sibley, commercial director at Rank, expects that familiarity with the Hard Rock brand will bring in a new clientele. At present, no casino can advertise, or allow anyone to see into the casino from the outside. Sibley believes it's this that makes the Hard Rock brand so important - the punter knows what to expect. "The brand has always been music-driven," he says, "and it appeals to people who are looking for a good night out."

The 550-capacity casino is relaxed and informal, although the group is keeping the 24-hour membership rule in place. The familiar decor of pop memorabilia and plasma screens playing music videos has been transferred, there is live entertainment, and the atmosphere is clubby and vibrant.

The 34-seat dining section is situated to the side of the gaming floor, with easy viewing over the tables, and has a menu similar to that at the Hard Rock Café. Average spend is estimated at around £15 per head including drink, with the restaurant turning over 60 covers a night. Food is served until 2am, when the menu changes to a snacks-only offering. For those who don't want to leave the roulette table, there is a floor menu available.

However, Rank doesn't expect people to have a leisurely dinner. As Jackie Abraham, head of marketing for Rank Gaming division, explains, Hard Rock Casino appeals to those who want the total Hard Rock experience - that means the food, the atmosphere, the music and, it is hoped, the gaming.

She says: "We hope our customers try the tables, but we also expect them to see the casino as another way of spending their leisure time - it's the whole experience that attracts them, and not just the gaming.

"This is different to many traditional casinos, where the whole focus within the casino is gaming."

Until the primary legislation is laid down, however, the Hard Rock Casino still faces many restrictions that would be laughed at by any more normal restaurant or club. In the meantime, Rank is gambling on familiarity with the brand to communicate its values to prospective punters.

Hard Rock Casino

The Printworks, Withy Grove, Manchester
Tel: 0161-838 5300
Number of seats: 34
Number of covers: 60
Average spend: £15 including drink
Staff: five kitchen staff, 12 servers and six bar staff
Casino manager: Phil Guynan
Head chef: Tony Dunne
Menu selection:
Starters: nachos, duck rolls or soup, from £3.50
Main courses: burger platter with fries from £7, steak sandwiches from £7.35, club specialities from £8

New legislation

The casino industry is going through a fundamental change following the publication of the Budd Report in July 2001 by the independent commission set up under Sir Alan Budd.

Its remit was to review gaming law in the UK for the first time in more than 20 years. In March this year, the Government responded with A Sure Bet For Success, approving - to the delight of all gambling operators - most of Budd's recommendations.

Piecemeal changes to the laws dating back to 1968 are coming into effect now, while more fundamental changes will be enshrined in primary legislation, due in 2004.

The changes affecting casinos include:

• Abolishing the 24-hour rule, where interested individuals have to join a casino at least a day before playing (although many are planning to keep membership as a prerequisite).
• Abolishing demand testing (where checks are made as to whether there is demand in the area).
• Abolishing permitted areas for new casinos (where casinos are allowed only in certain areas, such as non-residential locations).
• Lifting the prohibition on alcohol on the gaming floor.
• Lifting restrictions on the numbers of slot machines.
• Lifting restrictions on live entertainment.
• Allowing credit cards to be used for gambling purchases.
• Easing the marketing of casinos, and allowing entrances to be more flamboyant, although the restrictions prohibiting sight of the gaming area from outside are expected to remain.