Rank Aims For More UK Casino Customers

According to CEO Mike Smith, Rank hopes to attract around 50% more customers (or two million) to its casinos by 2009 as a result of UK gaming deregulation.

Under the new laws, UK casinos will be able to offer more gaming machines, will allow people to gamble without being members of the casino, and by around 2007, will be permitted to advertise. Not only will Rank gain new customers, but it will also be allowed to increase the number of gaming machines per casino, and will be able to bid for new casino licenses.

By the end of October, Rank will have increased the number of machines in its casinos to 1,468 from 963, as a result of gaming deregulation.

Rank has 36 casinos in the UK, with five new licenses in the pipeline, and has applied for five more. Under the new laws, a total of 17 casino licenses will be granted across the UK, and Rank, like most competitors, will apply for all of them.

Rank's online gaming division, Blue Square, achieved a 43% increase in revenue in the first half, as betting volumes were significantly higher than in the same period last year. However, sportsbook margins continued to be weak throughout the first half contributing to an operating loss of GBP1.0 million (USD1.8 million).

Mr Smith said he plans to increase marketing spending for the division. He added that he hopes to announce a sale of the media services unit by Christmas. Although there's no timetable on the sale of the film unit, "the process can't go on forever," he said. The process has been delayed because Rank has long-running contracts with major studios, which mean current customers have to agree about the buyer.