Casino operator London Clubs International (LCI), has increased its stake in the troubled Aladdin venture from 40 to 85 per cent, giving the company full control to cut its substantial losses and sell the Las Vegas casino.

Full-year losses dived to £52.8m - including a £50m provision against the value in interest in the development - after a £14.1m profit last year.

Likely buyers include US operators MGM, Harrahs and Park Place Entertainment, owner of the adjacent Paris operation.

Losses caused by the $1.4bn casino have overshadowed LCI's upbeat trading in the UK market, with operating profits up 36 per cent to £16.9m. LCI is now well-placed to take advantage of the expected changes in UK gambling laws in October and clubs are planned in Brighton, Northampton and Manchester for the next year.

Prior to the losses announcement, LCI's executive chair, Alan Goodenough, resigned after eight years, citing ill health. Non-executive director, Ron Hobbs, replaces him with immediate effect.