Leisure group Rank said expansions across its regional casino estate had already provided floor space for about 2,400 extra slot machines ahead of widely expected government plans to relax UK gaming laws.
Under existing regulations, the group’s casinos are limited to 320 gaming machines – 10 in each venue. But last July Sir Alan Budd’s government-commissioned review of gambling legislation recommended casinos be permitted eight machines for every gaming table.
The Department of Culture, Media and Sport is expected to accept Sir Alan’s proposals in an announcement this month, though legislation is likely to take three years.
Yesterday, Rank chief executive Mike Smith said such a law change would allow the group to increase its slot machine count in casinos tenfold. He added that 70% of this rise could be achieved almost overnight. The group is relocating its regional casinos to out-of-town locations, typically four times the size of existing venues. Sites at Birmingham, Blackpool and Great Yarmouth were relocated last year, with four more expansions scheduled over the next 18 months.
Rank also plans to open two new casinos – in Manchester and London – later this year. They will operate Pengeluaran SGP under the group’s Hard Rock brand in an effort to attract younger gamblers.
Analysts have pinpointed slot machines as the key to casino growth in Britain. They point to Las Vegas, where resort casinos generate 70% of revenue from machines; and France, where a relaxation in gaming laws in recent years has allowed many casinos to generate 90% of turnover through machines.
Mr Smith said he “did not disagree” with analyst estimates suggesting the proposed relaxation in slot machine regulations would add pounds 15m to Rank’s casino profits.
He said slots also provided “a big part of profits” at the group’s 124 Mecca bingo halls.
He added that he was hopeful that restrictions on the number of machines in bingo halls will be relaxed by the industry regulator this year.
Mr Smith was speaking after Rank announced underlying pretax profits for 2001 up pounds 2m to pounds 188m, on turnover down 3% to pounds 1.37bn. Gaming operations – with profits up 16% to pounds 96m – now generates almost a third of group turnover and more than half of pretax profits.
Group income was hit by a drop in tourism in Europe and the US, where up to 70% of trade at many of its Hard Rock Cafe restaurants is dependent on foreign visitors. It was also impacted by a one-off restructuring charge at Deluxe, the group’s film processing and video duplication business, which many analysts feel is not a natural fit with the rest of the business.
Yesterday shares in Rank closed up 1/2 p at 250 1/2 p.
Mike Smith: legal changes could add pounds 15m to profits
Pengeluaran SGP 