Stanley gambles on plan to open more UK casinos

STANLEY, Britain’s biggest casino group, today signalled its intention to cash in on relaxed gambling laws by expanding its regional influence at the same time as it painted a mixed picture of its fortunes over the past few months.

The company, which has three of its 41 UK casinos in Edinburgh, said it had struck a joint venture deal with Palomino Sun - part of the Malaysia-based Genting Berhad - to pursue the development of regional casinos at a time when the Government is planning the biggest shake-up in the UK’s gaming laws for 40 years.

Stanley chief executive Bob Wiper said the partnership deal would allow Stanley "to better capture the benefits of deregulation as they unfold". The joint-venture company, to be known as Stanley Genting Casinos Ltd (SGCL), will be owned equally by the two groups.

Both have agreed they will pursue regional casino opportunities only through SGCL, Stanley said. Genting owns about nine per cent of Stanley’s shares, but Mr Wiper did not expect a takeover move.

"Genting has substantial experience of building and operating very large casinos incorporating significant numbers of slot machines and has developed a series of sophisticated customer loyalty card programmes," Mr Wiper added.

"Genting also has valuable experience of building and operating large hotels and related leisure and conference facilities on its casino developments."

Tan Sri Lim Kok Thay, chairman of Genting International and the Genting Group, said the pact with Stanley marked a "significant point" in Genting’s expansion plans in the UK.

He added: "We remain tremendously excited by the outlook for the gaming industry."

Wayne Brown, of broker Altium Capital, described the deal as "very positive" and added: "They will benefit greatly from a joint venture with Genting. Running these huge casinos is not something UK firms have had much experience with."

Stanley said that before both companies took up their share in the venture, SGCL would pay 5.4 million for Stanley Casinos (Leeds) Ltd, a wholly-owned Stanley subsidiary which has the benefit of an option to acquire land adjacent to Leeds United’s Elland Road ground.

In a trading update, ahead of half-year results due in late January, the company - which also operates more than 600 high street betting shops under the Stanley Racing brand - said its provincial casinos had put in a "satisfactory" performance despite a quiet start to the year following changes to the money-laundering regulations.

Stanley added that it had struck a separate deal to buy a 50 per cent stake in Maxims casino in London for between 5.85m and 6.85m, subject to checking the books at the casino, which is being bought by Genting.