The Theatre of Dreams could become an American-style gambling Mecca.

Manchester United, confirmed this week as the richest football club in the world, announced today that it is in talks over the possibility of further boosting its income by building a supercasino at its Old Trafford ground.

A United States-based casino operator has approached the club to discuss plans to build a giant gambling venue. The operator is believed to be Las Vegas Sands, which owns the giant Venetian Hotel on the Las Vegas strip.

Earlier this week it was reported that Manchester United's turnover was £171.5 million last year, one-third of which came from ticket sales, the rest from merchandise and media rights. While the figure made the club the richest in the world, United's income dipped since 2003 and Real Madrid, the Spanish football powerhouse, has started to catch the former Premiership and European champions in the earnings stakes.

A casino at Old Trafford could house up to 1,250 slot machines with unlimited stake and prize money under controversial Government plans to liberalise the gambling laws.

It would also boost United's income, which is being threatened by a fall-off in previously lucrative television rights. Any potential partner would see Manchester United’s brand, global fan-base and 67,000 home game regulars, as a prime assets.

United’s director of communications, Phil Townsend, said: "We are at a very, very early stage simply investigating as to whether there is a commercial opportunity to site a casino should the legislation go through."

If the Government's Gambling Bill becomes law, the first supercasino could be built in Britain by 2008. A casino company would probably rent a piece of land from the club on which to build a casino. It would not be attached to the stadium. Leeds United have already announced similar plans for their Elland Road ground, while Manchester City are also in talks.

There are two categories of casinos: small and large. Under the new Gambling Bill, which has not yet become law, the Government plans to allow a third category of "regional" casinos, with a minimum size of 5,000 square metres. After a wave of public protest at earlier, more ambitious plans, ministers will now allow only eight super casinos.

The Government believe casinos could help to regenerate run-down areas and boost local economies.

Culture Secretary Tessa Jowell will take the final decision on where any new casinos would be built. United would also need to obtain permission from the local council in Trafford.

Gary Pickering, interim chief executive at the council, said, "Clearly any proposals the club may have will first of all depend on the Government’s Gambling Bill becoming law and then on whether their plans could secure the necessary approvals.

"I can confirm that an initial meeting about the club’s casino proposals is scheduled to take place next Friday.

"At this meeting the council will have their first opportunity to hear about the club’s proposals.

"Given that present expectations are that even if the bill becomes law, it would be towards the end of 2006 at the earliest that licence applications could be made, it really is too early for us to be entering into any more specific discussions, or making further comments."

Arsenal's parent company, Arsenal Holdings, today announced an increase in profits of £10.2 million before player trading in their interim results for the six-month period ending on November 30 last year. The club made a £2.2 million profit after taxation, compared to a £4.9million loss in 2003.

Construction is now well underway on the club’s Emirates Stadium, which has brought in some £90 million in combined ground and shirt sponsorship deals. Significant additional funds are also on the way from Arsenal's strategic partnership agreement with broadcaster Granada, who hold an equity stake in the club.

Mr Edelman maintains the north London outfit are heading towards a much "stronger financial footing" as Mr Wenger looks to regain their dominance in the Premiership and also have an impact in Europe.

Times Recommends

• ‘Lame duck’ fear for FSA as chief quits
• Storm over bailout of EU's most ailing economy
• Northern Rock to drop 100% savings guarantee