Casino operator London Clubs International (LCI) has confirmed expansion plans to develop Large Casinos in UK towns and cities as well as rolling out Regional Casinos.

The company has welcomed the latest report from the Joint Scrutiny Committee into the deregulation of gaming, claiming its development strategy will be greatly enhanced if the government implements the committee’s recommendations and lifts the restrictions it placed after the committee’s first report.

In London, LCI plans to extend both its Rendezvous and Golden Nugget venues to become Large Casinos offering additional gaming tables and 150 slot machines and betting facilities. Sites will also be sought to develop further large casinos around the country.

Meanwhile, the company will also seek to establish a number of Regional Casinos, possibly with joint venture partners.

LCI’s casinos in Southend and Brighton, templates for future rollout, are said to be developing well and in line with expectations.

Earlier this year, the group raised £49m through a successful rights issue and also arranged a £180.5m refinancing package – providing £133m senior debt including a £38m capital expenditure facility to fund in part the proposed expansion.

Michael Beckett, chair, said: “London Clubs International is in good shape to take advantage of the current deregulation plans.

“We have stable and well run operations both in the UK and overseas, we are well financed following the rights issue in April and we have the experience to operate large slot machine-based casinos of the future.”

The developments were revealed in LCI’s preliminary results for the year ending 28 March 2004, in which the company announced that turnover increased to £163.4m last year compared with £159.5m in 2003.

However, pre-tax profits fell to less than half the previous year’s – to £2.5m from £5.3m – largely due to exceptional items of £7m relating to contingent liabilities associated with LCI’s investment in the Aladdin casino in Las Vegas.

LCI currently operates seven casinos in the UK and four overseas: in Egypt, Lebanon and South Africa.