London’s iconic Crockfords Casino on the brink amidst tourism challenges

Content Team September 28, 2023

Crockfords Casino, proudly boasting the title of the UK’s oldest gaming establishment, finds itself in a precarious situation. The casino’s parent company, Malaysia’s Genting Group, has embarked on a 30-day “consultation process” involving its staff as it deliberates over the future of this £80 million ($97 million) property, as reported by the Daily Mail.

Facing an uncertain future

Crockford’s inception traces back to 1828 in the upscale district of Mayfair, founded by the remarkable journey of a working-class fishmonger named William Crockford. Over time, he ascended to become one of England’s most affluent self-made individuals.

The casino currently employs approximately 100 individuals, who now face the looming prospect of redundancy. Regrettably, this iconic venue, renowned for its exclusive clientele of aristocrats and royalty, may permanently close its doors due to London’s struggles in attracting high-end tourists.

Paul Willcock, the President of Genting Casinos UK, conveyed that Crockfords has been adversely affected by a blend of factors. He pointed out that London faces a “competitive disadvantage” when compared to other global markets. Willcock emphasised that no final decisions would be made without taking into account the insights and perspectives of the dedicated staff members at the casino.

Willcock said: “We highly value our employees, and we are committed to our duty of care to them. None of our other casinos are affected in any way by this process and we will not be commenting further while this consultation is underway.”

High rollers are seeking alternatives

In recent years, London has bid farewell to two prestigious casinos, the Ritz Club and the Clermont, primarily due to the diminishing presence of high rollers on the UK gambling scene. John O’Reilly, the CEO of Grosvenor, the UK’s largest casino group, addressed this issue during an earnings call last month.

He revealed that traditional patrons from the Middle East, who had been a reliable source of VIP revenue for London’s casinos, now prefer cities like Paris or Milan for their gaming endeavours.

This shift can be attributed, in part, to a change in British government policy. The discontinuation of the duty-free system for foreign visitors, often referred to as the ‘tourist tax,’ marked the end of their ability to reclaim the 20% value-added tax (VAT) on purchases made while in the UK. This change came into effect in 2021 when the UK formally departed from the European Union.

Furthermore, London’s high-end casinos have felt the impact of the Gambling Commission’s decision in 2020 to prohibit gambling with credit cards, further influencing the landscape of the city’s gaming industry.

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