Deregulation of gaming in Great Britain may not have followed the course originally anticipated, but it seems that the predicted invasion of the big US operators has started. Harrah’s Entertainment has announced an agreement of a subsidiary to acquire London Clubs International plc (LCI) for around US$530 million, a deal unanimously recommended to shareholders by the LCI Board of Directors. If its offer is accepted, Harrah’s expects to close the deal before the end of the year.

LCI has six casinos in the UK, two in Egypt and one in South Africa. It also has five additional casinos under development in the UK and a consulting relationship with a casino in Lebanon. Harrah’s, the world’s largest gaming operator, is looking for further expansion outside the US. So far not represented in Asia, the company has recently announced projects in Spain and Slovenia. Since the announcement of the LCI deal, shares in the UK company have soared, up 32% in early trade.

"London Clubs has a strong collection of properties that are well positioned in the United Kingdom's evolving regulatory framework. Under Harrah's ownership, these international properties will even be stronger in the future," said Gary Loveman, chairman, chief executive officer and president of Harrah's. "The multi-national operational experience of LCI's management strengthens Harrah's existing team, allowing for continued international expansion."

Merger talks between LCI and Stanley Leisure, the largest UK operator with 45 casinos, had been underway and it had been suggested that Harrah’s might offer for the merged company. Harrah’s has now staked its claim in the British gaming market, which should certainly stir up the existing operators. With 68 years of experience in offering gaming entertainment and customer service, Harrah’s is a force to be reckoned with, and should prove to be strong competition for the local casino industry. (E-08.31.06)

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