Genting Quietly Buys Mecca Bingo Stock

Last week gambling giant Rank (Mecca Bingo) rejected an offer by Harrah's to trade Harrah's U.K. casinos for 28% of Rank stock.

Now they find that the Malaysian group Genting has secretly purchased 10% of Rank stock. Rank has forty five of the hard to get United Kingdom gambling licenses so there are several companies that are watching the situation closely. There are only a total of 143 gambling licenses in the U.K. Rank, like other UK bingo operators, is experiencing difficulties because of the situation in the United Kingdom.

The high payout fruit machines are limited, the income is subject to both the VAT and the profits tax and there is a no smoking ban that came with the new regulations. This is proving a lethal combination for UK bingo operators and Mecca Bingo, like others is having financial problems. The share price of Rank stock has been falling on the FTSE due to the bingo situation. Rank shares are not the first of Genting's British holding.

The Malaysian gambling concern purchased Stanley Leisure last year. Genting, like other companies, is eyeing the British licenses and Genting bought the stock in a preemptive move against other buyers. There are rumors that Ladbrokes and Aspers are also interested.