British casino operator Stanley Leisure said today it had formed a joint venture with Malaysian conglomerate Genting Berhad to develop regional casinos in Britain, raising the stakes in the battle for a share of an expected gambling boom here.

Genting, which also raised its stake in Stanley Leisure to 9.1 percent from 2.8 percent previously, is to team up with the British firm to pursue the expansion of its regional casino business within Britain.

Tan Sri Lim Kok Thay, chairman of Genting subsidiary Genting International, said in a statement to the London Stock Exchange: "We are delighted to become a substantial shareholder of Stanley Leisure.

"We intend to be a committed, strategic partner to create value for all shareholders."

In September Genting struck a deal to acquire an exclusive casino in London, Maxims, from one of Britain's largest gaming companies, Gala Group.

Genting International, which is listed on the Luxembourg Stock Exchange, is a subsidiary of Genting Berhad which has interests ranging from leisure and hospitality to power generation, plantations, property, paper as well as oil and gas.

Foreign casino operators are vying for a share of the burgeoning British gaming market, betting on an outbreak of gambling fever here after lawmakers voted recently to loosen laws governing the industry.

Strategic investor

Under the planned changes to British laws, people will be able to play for unlimited prize money at new casinos.

Slot machines and roulette tables would appear in bingo halls and betting shops, while casinos will be able to run 24 hours a day.

Would-be gamblers will also no longer have to join up 24 hours in advance to have a flutter.

However, Stanley Leisure chief executive Bob Wiper played down prospects of Genting launching a takeover bid for his group, saying the Malaysian conglomerate was content to remain as a "strategic investor".

"They never expressed any interest in a takeover. My judgement tells me they're not interested in a takeover... either now or in the future," he said.