As reported by: The Telegraph
Tony Blair and Tessa Jowell, the Culture Secretary, were accused last night of misleading MPs over secret talks with American gambling magnates on plans to build giant casinos in Britain.

The Conservatives claimed that both the Prime Minister and Mrs Jowell had failed to come clean over private negotiations on watering down money-laundering regulations for the new casinos.

Both No 10 and Mrs Jowell denied the accusations.

But the claims came after official documents, obtained under the Freedom of Information Act, confirmed that officials at the Department for Culture, Media and Sport had discussed relaxing the proposed European Union regulations - set out in a draft directive on money laundering - to encourage big American casino operators to invest in Britain.

The directive could potentially require every person entering a casino to produce proof of identity, a requirement considered too bureaucratic by American gambling interests.

In the run-up to May's general election, Labour scaled down its ambitions to create up to eight super-casinos across the country. Faced with protests from churches and gambling addiction charities in addition to MPs and peers, ministers reduced the project to just one giant casino.

However, more may be allowed once the new Gambling Commission has assessed the social impact of extra betting.

But debate on the Gambling Act last year was marked by accusations over the nature of private talks going on between officials at the Department for Culture, Media and Sport and potential United States investors.

Reports that a senior civil servant had written to American casino companies to ask what regulatory changes they favoured in the draft EU directive were categorically denied by Mrs Jowell in the Commons.

The Culture Secretary also indicated that discussions on the money laundering directive as they affected casinos were not a matter for her department or her officials.

"Discussions on the money laundering directive are a matter for the Treasury," said Mrs Jowell during the debate on the casino plans.


Article By: The Telegraph