Stanley Leisure has revealed plans to cash in on controversial gaming deregulation by building a £125 million casino complex in Leeds "to rival any other in the UK".

The company, the UK's biggest casino operator, said that it had begun talks with potential partners over creating a mega-casino which will include a hotel, restaurants, bars and shops besides gaming facilities.

The complex, which will create more than 1,000 jobs, will be built on a seven-acre site next to Leeds United's Elland Road stadium. For £5 million, Stanley has bought from the football club an option to acquire the site, which Bob Wiper, the casino group's chief executive, rated the "best location for a casino in the north of England".

He added that Stanley was planning to build "an exciting casino complex to rival any other development in the UK".

The announcement comes six days after Quintain Estates and Caesars, which owns the Caesars Palace gaming resort in Las Vegas, unveiled plans for a £320 million casino complex on a 13-acre site next to the re-developed Wembley stadium in London. The venue will house 1,250 slot machines, 110 gaming tables a 400-room hotel and a convention centre.

Other foreign gaming giants, including Kerzner International and MGM Mirage, are also believed to be weighing plans for exploiting proposals to deregulate gambling laws in Britain.

However, the reforms have yet to be passed by Parliament, nor regulation finalised. In an interview with The Times last week, Tessa Jowell, the Culture Secretary, warned casino operators not to assume that they would automatically be granted licences.

Stanley, which owns the largest casino operating in the UK, Birmingham's Star City, said its Leeds complex would be finished by the end of 2007, subject to deregulation and planning consent.

"The site is ideally located close to the M1, M62 and M621 motorways and enjoys a catchment of over five million adults," the company said.

The announcement received a cautious welcome from analysts. Altium Securities, while maintaining its "hold" rating on Stanley Leisure shares praised the location of the development, which it said was "potentially exciting”.

Stanley Leisure shares stood 7.75p higher at 426.75p in afternoon trade.

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