Stanley Slumps Following £3m Win

Shares in the UK's largest casino operator nose dived to a six month low with more than £60m wiped from its stock market value after a gambler won £3m at one of its casinos.

Unusually it was a player outside of London who caused the damage with Paul Newey, a businessman thought to have won £3m at Birmingham's Star City casino, helping share price to fall by 12 per cent and contributing to the company issuing a profits warning to investors.

Analysts had expected the group to report profits of around £52m, but Stanley warned that it only expected to match last year's haul of $41.8m.

In a trading update to cover the six weeks since November 23, Stanley said racing results had been poor at a time when the Premiership giants were enjoying running wins.

"Whilst machine profits have continued to increase, this growth has been insufficient to offset the reduction in contribution from the core betting operation."

"The gaming division has, in accordance with its normal accounting policy, provided for unpaid gaming debts. Although we're confident that these debts, which relate to a small number of players, will be collected, the timing is uncertain and they may remain outstanding at the year end."

"In addition, the division has suffered material losses to a major player. These debts and losses are within normal levels for the division's most significant customers."