U.K. Gambling Proposals Favor Las Vegas Operators

Las Vegas casino operators such as Harrah's Entertainment Inc. will benefit from U.K. proposals to encourage larger establishments in the country and allow them unlimited slot machines, analysts said.

Guidelines published by the U.K. would expand the size of new casinos and allow places with more than 40 gambling tables to have as many slot machines as they want. The government has said it will draft a gambling bill later this year.

``This gives the green light to U.S. players who want to introduce entertainment-led gaming like they have in Las Vegas,'' said Iain Wilkie, a partner at Ernst & Young LLP.

U.S. and foreign casino companies are forming ventures or buying licenses in the U.K. in anticipation of looser regulations.

Harrah's, the second-largest U.S. casino company, and Gala Group Ltd., a U.K. operator of bingo halls, plan to invest as much as $1 billion in developing as many as eight casinos in Britain.

MGM Mirage acquired a 25 percent stake in Metro Casinos Ltd. and International Game Technology, the world's largest slot-machine maker, bought Barcrest Games of Lancashire, England, the Wall Street Journal reported.

Casino entrepreneur Solomon Kerzner, who built the Paradise Island resort in the Bahamas, bought a license to open a casino in Northampton, the Daily Telegraph reported, citing Kerzner.

The new rules might remove some advantages of U.K. operators that are established in the market, including Stanley Leisure Plc and Rank Group Plc, Merrill Lynch & Co. said in a report.