Gaming operator Rank has been told to remove a Scottish casino from a £205 million merger deal with rival Gala.
According to the Competition Commission, the Mecca Bingo owner’s proposal to acquire 23 Gala sites could reduce competition in Aberdeen and several English cities.
Sites in Liverpool, Stockton-on-Tees, Bristol and Cardiff should also be excluded from any deal, as well as a licence to develop a new casino in Edinburgh.
Dundee’s Gala Casino is not included as part of the prospective merger, with the Waterfront site now the subject of a £1m compulsory purchase order made by Dundee City Council as part of an £8.5m deal to clear the area for redevelopment.
The report released on Tuesday largely confirms the provisional findings from December.
Rank announced a deal last May to acquire from the Gala Coral Group 23 casinos and three “cold” licences, where the operator holds the right to operate a casino in a particular area even though not active.
The Office of Fair Trading referred the case to the CC in August, and although their agreement subsequently lapsed, the parties have confirmed that they are still pursuing the merger.
The transaction will now be permitted as long as the casinos in Aberdeen, Stockton-on-Tees, Bristol and Cardiff are not included.
In addition, Rank must sell the cold licence it holds in Edinburgh to an upfront buyer approved by the CC or it will also be prohibited from buying the Gala casino in Edinburgh.
The CC found casinos compete for customers mainly at a local level, particularly on elements such as customer service and promotions.
Rank and Gala are two of the three large national casino operators in the UK. Following the merger, there would be only two large national casino operators, Rank and Genting.