English try their luck at Keno

Through an alliance with UK operator Stanley Leisure, Jupiters has been trialling Keno in 30 betting shops in northern England since the start of the month. In addition to being the second biggest casino operator in the UK, Stanley Leisure owns 600 betting shops.

Jupiters will make no money from the trial, with Stanley Leisure receiving all Keno revenue. ``It's all about learning," current Jupiters chief executive Mr Rob Hines said. ``It's not about making money."

Although Jupiters' Keno revenue jumped 25 per cent to $84 million last year, Mr Hines said Keno was not a growth gaming product. ``The only way to really grow Keno is to get it into additional outlets," Mr Hines said. ``That's what the strategy in the UK is about."

The UK is shaping up as the next big growth market for gaming companies after the Budd Gambling Review, released in July, recommended widespread deregulation of the British industry.

Changes recommended by the Budd report included increasing the number of poker machines allowed in casinos and broadening the range of activities offered to include sports betting and bingo. This would place UK casinos on a par with their Las Vegas and Australian counterparts.

Kerry Packer's Publishing & Broadcasting has already confirmed it is assessing potential casino acquisitions in the UK to build on the success of Crown Casino. It is understood Victorian betting agency Tabcorp is also investigating opportunities in the UK.

Should the Blair Government agree to the Budd report's recommendations, the changes are not expected to have any financial impact on UK gaming operators until mid-2003.

Investment bank ING Barings believes Stanley Leisure could benefit the most from deregulation. ING estimates it could boost the company's earnings by 74 per cent.

However, Mr Hines said Jupiters and Stanley Leisure had not discussed forming a broader relationship.

The Keno trial in the UK arose out of a personal friendship between former Jupiters chief executive Richard Barnes and Stanley Leisure chairman Leonard Steinberg.

Jupiters made an approach to Stanley Leisure six months ago about trialling Keno in its Stanley Racing betting shops.

Jupiters has only just begun advertising Keno in the local press in northern England. Jupiters will assess the trial's success after three months before it decides whether to expand it to include all Stanley Racing betting shops.

Jupiters shares fell 1c to $4.56 on Friday.