Bingo hall operator Gala has abandoned its plans to build eight regional casinos across Britain following culture secretary Tessa Jowell’s decision to “severely restrict” casino development.
Gala had agreed to develop the casinos with US giant Harrah’s International in a $1bn (£531m) joint venture, but they have now decided to wind up the venture.
Instead Gala and Harrah’s will work together on the basis of a strategic alliance to “take advantage of any opportunities that may arise.”
Gala chairman John Kelly said: “We have built up an excellent relationship with Harrah’s over the last two years and we do not intend to let that go to waste. The Government’s current proposals made our ambition unrealisable and so the joint venture is no longer the appropriate vehicle for us.”
Gary Loveman, Harrah’s president and chief executive, added: “It is now clear that the UK gaming market will develop in a different way than that envisaged when we set up the joint venture in 2003, and opportunities have been greatly restricted. Nonetheless we see an ongoing relationship with Gala as an important element in our continuing interest in the UK market.”
Harrah’s and Gala had spent around £4m on the joint venture.
References: EGi News 06/01/05
