Stanley Leisure, Rank Fall As UK Supports Casino Restraints

Shares of UK casino owners Stanley Leisure Plc and Rank Group Plc fell after the government said it supported adjusting a proposed gambling bill to place limits on slot machines and to allow local authorities to bar casinos.

Stock in Stanley Leisure, Britain's largest casino operator, slid as much as 6%, the biggest drop in more than a year. Shares of Rank, whose Grosvenor Casinos unit runs 32 UK casinos, dropped as much as 5%.

Speculation that UK gambling laws would be relaxed, boosting demand, has led Rank and Stanley Leisure to expand their casino operations and prompted a takeover bid for Wembley Plc. Today's announcement came in response to a parliamentary committee report on the draft bill, Tessa Jowell, secretary of state for culture, media and sport, said in a statement.

"If there is sustained evidence that reform has gone well, then we can consider allowing further choice,'' Jowell said in the statement, which was posted on the department's Web site. "But we will be cautious for now."

Stanley Leisure shares fell as much as 28.5 pence to 448 pence. Rank shed as much as 15.25 pence to 289 pence. Stanley Leisure stock was at 452 pence at 12:15 p.m. in London, and Rank was at 293 pence.

Changes in the draft bill include capping the number of slot machines at 1,250 in casinos outside London and permitting the machines only in the largest regional casinos, according to the statement. A new national regulator will carry out a study of problem gambling every three years.

The proposed bill also would drop a requirement that gamblers become casino members 24 hours before they start to play. Analysts expect the changes to take effect by 2006.