Gaming group Stanley Leisure said it was considering a takeover bid for debt-laden rival London Clubs International (LCI).
The bookmaker said it would be interested in making an offer if it could reach an agreement with all relevant parties.
LCI runs some of London's most prestigious casinos, including Les Ambassadeurs and The Golden Nugget but has been hit by a costly venture in the United States.
Debts have soared to about £240 million after it decided to invest in the ill-fated Aladdin gaming development in Las Vegas.
Bob Wiper, chief executive of Stanley, the UK's biggest casino operator with 40 regional sites, said the firm had been watching the circumstances of its rival closely.
Talks had already been held with LCI's former chief executive Alan Goodenough and private equity group Hg Capital.
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