Rank faces casino selloff in Gala takeover

Rank could be forced to sell six casinos to secure its £205 million takeover of Gala Coral, the Competition Commission said.

The FTSE 250 gaming group agreed in May to buy the casino business of Gala Coral in a deal that would add most of Gala’s 24 British casinos to Rank’s estate of 35 clubs.

The bid would also have allowed Rank to overtake Genting, the Malaysian-owned operator that controls the former Stanley Casinos chain, as Britain’s biggest casino operator.

In August the Office of Fair Trading referred the Rank bid to the Competition watchdog on the grounds it would “substantially reduce competition in the casino sector” and could “result in a worse deal for consumers”.

In a ruling published today, the Competition Commission said: “Rank could be required to find buyers for a number of casinos, or be prohibited from buying these casinos, before its acquisition of Gala Casinos can go ahead, after the Competition Commission provisionally found that the merger could damage competition in six areas of the UK.”

The six areas are Aberdeen, Liverpool, Stockton-on-Tees, Bristol and Cardiff, as well as Edinburgh, where Rank holds a licence but does not operate a casino.

Professor Martin Cave, who chaired the Rank/Gala inquiry group and is deputy chairman of the commission, said: “We have found that casinos vary their offer in response to local competitive conditions and while there is limited scope to compete on price, casinos try to attract customers through customer service, promotions, events and the range of games available.

He added: “Our concern is that with two of the national players merging, this will leave a number of areas with much reduced competition where casino customers could consequently lose out through a poorer casino offer.”

Rank has suggested previously that it was willing to sell some of the casinos to satify the competition authorities. It declined to comment today.

Nick Batram, analyst at Peel Hunt, has maintained his “buy” recommendation on Rank, which is a client of the broker. He said: “The preliminary findings of the Competition Commission lays out a number of routes which would enable a deal between Gala and Rank to proceed. This would lead to a slightly smaller deal but, in our opinion, would still be a transaction both sides would be interested in. Our Buy stance does not rely on the acquisition of Gala Casinos, there are sufficient organic opportunities for Rank and other potential acquisition targets – none of which is reflected in the current rating.”

Rank’s shares eased ½p on the news to 143¼p, valuing the group at £560 million.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp

Latest

Contact me

For any queries, training, courses or to write for my site ...
Say hello
Twitter feed is not available at the moment.

Related

Luxury and Luck The Most Opulent Casino Resorts Globally
Casinos

Luxury and Luck: The Most Opulent Casino Resorts Globally

For those who seek the perfect blend of opulence and entertainment, the world’s most luxurious casino resorts offer an unparalleled …

Beyond Slot Machines A Guide to Sophisticated Casino Games
Casinos

Beyond Slot Machines: A Guide to Sophisticated Casino Games

Casinos are more than just places to pull the lever on slot machines. They offer a wide array of sophisticated …

Winning Strategies Pro Tips for Maximizing Your Odds at Table Games
Casinos

Winning Strategies: Pro Tips for Maximizing Your Odds at Table Games

The allure of table games at casinos is undeniable. The blend of skill, strategy, and chance provides an adrenaline rush …

Roulette, Slots, or Poker Choosing Your Perfect Casino Game
Casinos

Roulette, Slots, or Poker: Choosing Your Perfect Casino Game

The world of casinos offers a diverse array of games, each with its unique charm and allure. Among the most …

The Thrill of the Bet: Exploring the Psychology of Gambling Gambling has been a part of human culture for centuries, offering excitement, entertainment, and the allure of winning big. In this article, we'll dive deep into the psychology of gambling, understanding why people are drawn to it and the various aspects that make it so thrilling. The Allure of Risk and Reward The rush of gambling often stems from the thrill of risk and the potential for significant rewards. We'll explore the human brain's response to risk and reward, including the release of dopamine, a neurotransmitter associated with pleasure and motivation. The Cognitive Biases in Gambling Gamblers are not always rational decision-makers. Cognitive biases, such as the gambler's fallacy and confirmation bias, can influence our choices. We'll discuss these biases and how they impact decision-making during gambling. Understanding the Role of Skill and Chance Many forms of gambling involve a combination of skill and chance. We'll delve into how understanding the balance between these elements can affect a player's experience and decision-making. The Impact of Near-Misses and "Almost-Wins" Near-misses, where a player almost wins, can be more motivating than clear losses. We'll analyze how near-misses in gambling can keep players hooked and the role they play in addiction. The Dark Side of Gambling: Addiction While gambling can be thrilling and fun, it also has a dark side: addiction. We'll discuss the signs of gambling addiction, its impact on mental health, and available resources for those seeking help. Gambling is a complex and multifaceted activity, driven by both psychological and emotional factors. Understanding the psychology behind gambling can provide insights into one's own behavior and, if necessary, lead to more responsible and enjoyable gambling experiences. If you or someone you know is struggling with gambling addiction, don't hesitate to seek help. Many organizations and support groups are available to provide assistance and guidance on responsible gambling and addiction recovery.
Featured Category

The Thrill of the Bet: Exploring the Psychology of Gambling

Gambling has been a part of human culture for centuries, offering excitement, entertainment, and the allure of winning big. In …

The Enchanting World of Card Magic Tricks
Featured Category

The Enchanting World of Card Magic Tricks

Card magic tricks have fascinated and mystified people for centuries. Whether performed by a seasoned magician or an amateur enthusiast, …

Scroll to Top