£6m Oldbury casino hitch over licence blunder

Plans for a new £6 million casino in Oldbury, which would create 120 jobs, face an uncertain future after a High Court judge ruled the proposed development's gambling licence should not have been issued.

Grosvenor Casinos Ltd, which runs Mecca Bingo in Halesowen Road, Oldbury, was given permission by Sandwell Council to shift an unused casino licence for that premises to Birchley Island, by junction two of the M5, where the new venture is planned.

But, following a legal challenge by rival casino operator, Clockfair Ltd, Mr Justice Lloyd Jones said the council should not have granted the casino licence in the first place.

The judge said it is "clear policy" that premises should not have more than one licence at a time. He said the council must now reconsider an application by Clockfair Ltd to revoke the casino licence.

Grosvenor Casinos was originally granted a casino licence seven years ago for a development it had planned in Halesowen Street.

Bosses had wanted to expand the existing Mecca Bingo, which it owns. The firm later applied to transfer the casino licence to Birchley Island because of hold-ups with the original scheme caused by a planning wrangle.

Grosvenor Casinos wants to build the G Casino as part of a £15 million overall plan by St Modwen, which will include offices and an 80-bed hotel. The complex is due to open in 2013.