After reporting the company’s half year results to 30 June 2010, when Group operating profit after exceptional items of £66.1 million (US$90m) more than doubled the 2009 figure of £31.6 million (US$45m), Rank, owner of the Grovesnor Casino chain, announced plans to build at least five new casinos in northern and central England over the next two years at a cost of £23 million (US$44m), with five more at a later date to total 45 casinos.

Ian Burke, Rank's chief executive, said the group would bid for a new casino in Newham, as the first under the Government's 2005 plans for eight new large and eight new small casinos. The 500-acre Olympic Park that will be home to the major sports facilities for the London 2012 Olympic and Paralympic Games are located in Newham and this will kick off major regeneration for this city and the whole of East London after the games.

However, along with the Group’s expansion plans comes the news that Grosvenor will close its Hove operation with the loss of seventy jobs. According to Rank the Hove casino is no longer commercially viable. Recently the company opened its newer brand G Casino with 24 hour gambling in nearby Brighton. Rank has said it will endeavor to relocate many of the staff.

Burke also called for regulations for the new casinos to be extended to the existing ones, especially properties like the company’s central London flagship, Victoria Casino, which at present is only allowed 20 slot machines. Under the new regulations, The Vic, as it has been known for some 50 years, would be allowed 150 slots.

Rank has managed to reverse a decade-long decline in visits to its bingo halls. The report of earnings and the new announcement of future expansion led company stock to close at 117 pence on Friday, marking a 40% rise in Rank shares since the beginning of 2010. (E-08.02.10)

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