Voters in Colorado have rejected a proposal which would have seen a state-run video lottery terminal programme run at the state’s racetracks.

Since it owns four out of the five racetracks in Colorado, track-based gaming company, Wembley, would have benefited from the passage of the proposal – known as amendment 33 – but the company said that whilst the defeat was unwelcome it was "not altogether surprising".

It said that the proposal had faced concerted opposition – said to have been funded by casino interests in Colorado – and that "the issue of indictments in Rhode Island was not helpful".

Costs incurred by the company in connection with the expansion are expected to be in excess of £4m.

A trading update issued by Wembley reports that US trading has been satisfactory, particularly so at Lincoln Park. The Colorado operation has performed in line with expectations.

In the UK, the group had a "challenging" first six months, mainly at Wimbledon and Catford. Following a review, it has decided to dispose of the Catford site and cease operations there with immediate effect.

Looking ahead, despite strong bookings for the fourth quarter the operating profit from the UK gaming division is expected to be about £1m down on last year. Details: www.wembleyplc.co.uk