Court blow to Ladbroke’s in war of casinos

Press, 18 July 1979, Page 8

Court blow to Ladbroke’s in war of casinos

NZPA-Reuter London London magistrates who heard tales of questionable business practices have ruled after six days of hearings that Ladbroke’s, the biggest legal gambling group in Britain, must close four luxurious London casinos because it is unfit to run them.

The magistrates agreed with objections by the American-owned Playboy Club and by Scotland Yard, and refused to renew Ladbroke’s licences under the Gaming Act. The magistrates declared Ladbroke’s not fit and proper people to run casinos. It was business as usual at Ladbroke gaming tables yesterday, however. The casinos may continue operating pending an appeal, which the firm has said will be filed within the required 21 days. The case centred on alleged unorthodox actions by Ladbroke’s aimed at enticing gamblers away from rival clubs in London’s West End. The magistrates ruled the actions impermissible. Private detectives hired by Ladbroke’s had jotted down car numbers outside rival casinos and had been able to trace the car owners surreptitiously through contacts in the police computer operation, the hearing was told. Ladbroke’s had then invited these gamblers to free meals, sent them flowers and fruit, and invited them to become members of the Ladbroke clubs in London, witnesses said. Thousands of dollars had been paid to hotel porters to introduce prospective gam-

biers to Ladbroke casinos, and some gamblers had been paid commissions to introduce big losers, Mr Simon Tuckey, of the Gaming Board, told the hearing. Ladbroke’s lawyers accused Mr Victor Lownes, of the Playboy Club, of object-, ing to the licence renewal through jealousy and an eye to the rich pickings that could follow a closing of Ladbroke casinos.

Mr Janes Fox-Andrews, a lawyer fot Ladbroke's, said; “The picture that has been painted of Victor Lownes as a latter-day Sir Galahad donning his suit of shining white armour emblazoned with the world ‘Purity’ is so ludicrous as not to merit a moment’s consideration.”

Mr Lownes' said solemnly after the.,decision: “Ladbroke casinos, like. Playboy casinos, contributed to the composite gamour of the variegated scene which draws gamblers to London. “British gamjng. has earned itself i reputation for the wisdom of its legislative structure and for the firmness of its administrative supervision. Eut its success depends upon the recognition by the gateral body of the industry Itself that it will not tolerate any violation of the lav by persons holding casino licences.”

Ladbroke’s casinos accounted for half the SBBM profit last year. The firm’s casino division, Ladup, Ltd, has 1400 eitnioyees and 19,000 shareholder. More than' 332.7 M has been wiped off the company's stock mar let value in ate dealings since the ruling.