HOTELS and betting chain Hilton has sealed a £235m deal to sell its Ladbrokes Casino business to the bingo operator Gala.

The sale will see Gala take control of 29 casinos, including six in London.

Hilton said the proceeds would be used to reduce its debt and allow the group to develop its core hotels business and Ladbrokes betting operation.

Gala will add 27 UK casinos, plus one each in Gibraltar and the Isle of Man, to its portfolio of 175 bingo halls around the country.

It has been locked in talks for several weeks with Hilton, which confirmed in October it had received an "unsolicited approach" from a mystery suitor.

David Michels, Hilton chief executive, believed the deal fitted in with the group's strategy of focusing on core operations.

He said: "We believe we have achieved good value in respect of the casino division and will continue to focus on our two long term businesses of hotels and betting."

Most of the casinos were acquired by Hilton last year as part of its takeover of the rival hotel chain Stakis.

The operations being sold contributed profits before tax and interest of £13.2m during the year to December 31, 1999.