Genting Singapore’s (G13.SG) sale of UK casino business positive as it’s tough for operations there to significantly grow profitability without further industry deregulation, such as allowing large-scale casinos, says Macquarie, according to Dow Jones.

Macquarie adds UK government likely to impose fairly high tax rates on any new casinos. Notes Genting Singapore will benefit from sale through savings on interest costs due to lower debt, being able to focus purely on Resorts World Sentosa.

Raises FY11-12 EPS estimates by 7% to reflect lower net interest expense, resulting in higher target of $1.30 vs $1.19. Keeps Outperform call.

Shares +0.8% at $1.19 on firm volume (most active in market) as improved earnings prospects drive interest.

$478.1 million impairment loss relating to UK operations largely responsible for Genting Singapore’s 1Q10 $396.3 million net loss.

Having pulled back from early high of $1.21, last tested in January, upside appears limited.