Casino and bookmaker Stanley Leisure is betting on a relaxation in the UK gaming laws by pulling out of its online service in Malta to set up in Liverpool.

Stanley Leisure is positioning itself to take advantage of the expected lowering of duty and gaming deregulation in the forthcoming Gambling Review Body findings led by Sir Alan Budd, due next week.

The Maltese operation caused losses of £4.7m to Stanley, with pre-tax profits in the year to 29 April down £29.5m to £26.8m. Bad weather at the races, the foot and mouth epidemic, and big wins totalling almost £3m among high-rollers at Crockford's earlier in the year also impacted the results. Turnover was up by 7 per cent on last year to £612m.

Despite the losses incurred in Malta, chair Leonard Steinberg is upbeat about the impending gaming changes: I am confident that Stanley Leisure is best placed to take advantage of the opportunities over the next few years. We anticipate these opportunities will provide a major step-change in the company's development.

The review body's changes in taxation are expected to be enforced from 1 October 2001.