Home » GlobeTripping » Trading Bricks for Clicks : Harrah's Bid for UK Casino Operator Rank

Trading Bricks for Clicks : Harrah's Bid for UK Casino Operator Rank

» posted by Chuckmonster
  on 29 November 2007 3:52 pm

UK CasinosHarrah's charge to dominate the small, yet quite profitable UK gaming scene hit a little snag the other day. The Rank Group, operators of UK's Grosvenor Casinos, Hard Rock London, four G Casinos and three internet betting sites, have passed on a swap offer wherein Harrah's would exchange its UK casinos (including the recently acquired London Clubs International) in exchange for 28% of the new, larger company.

Confusing? Yes... sort of.

Harrah's Gives: Rank Gives Harrah's Gets: Rank Gets:

Harrah's (LCI)

2006 Revenue: GBP126.1M

Casino At The Empire
Fifty (London)
The Golden Nugget (UK)
Rendezvous (London)
Sportsman Casino
Rendezvous Brighton
Rendezvous Southend
Manchester 235
Alea Nottingham
Future properties in Leeds and Glasgow

Rank (Grosvenor etc.)

2006 Revenue: GBP94.6M

Grosvenor Casino
Clermont Club
Park Tower
Hard Rock London
G Casino (Blackpool, Bury, London & Luton)
Top Rank Espana (11 clubs)
Mecca Bingo Clubs (113 UK clubs)
MeccaBingo (online)
Blue Square (online gaming)

72%

28%

The combined 2006 revenue of the two sides of the swap is GBP220.7M. Harrah's seems to be shaving about 8% off of Rank's value... a bit much. I'd attribute the differential to Harrah's believing they have a pipeline of future projects with more potential value than Rank does. Rank is smart to spurn this offer as they have other suitors beating a path to their doors, including Genting International, who recently gobbled up Stanley Leisure, and Ladbrokes. As the global gaming economy grows and consolidates, we're definitely going to see more international acquisitions by the major players. MGMMirage seems to be on a trajectory towards becoming a design firm with an interest in partnering to build plush hotels with or without gaming components. It appears that Harrah's could have their run of the UK candy store until another interested party with deep pockets enters the fray (Branson?).





Comments & Discussion:
Subscribe via RSS







Recent Comments:

JohnD posted: "It looks like in just about every room there are three ladies ready to give you a handjob. Now that's..."
» on Meet Bellagio's Doppelganger, Winn Cambodia...
detroit1051 posted: "Pure sacrilege! Triple Rooms, Bikini Shows, Cock Fighting? Don't give MGM any ideas for Bellagio. :-)..."
» on Meet Bellagio's Doppelganger, Winn Cambodia...
mctrees02 posted: "This has to be a joke, right? They have rooms with THREE beds in them! The home page..."
» on Meet Bellagio's Doppelganger, Winn Cambodia...
vespajet posted: "Here in Georgia, we've had a number of branded scratch off games. We've had several different Monopoly branded ones,..."
» on Rhode Island Offers Aerosmith Branded...
jester122 posted: "just announced it will be in indio..."
» on Phish In Indio For Halloween...



Friends:

Die Is Cast
Two Way Hard Three
Five Hundy By Midnight