The Chelsea's blues are a boon for Gala Coral as it gears up for Ladbrokes merger

The Gaming group Gala Coral has enjoyed a ‘strong start’ to the Premiership football season as its bookmaking arm gears up to merge with rival Ladbrokes.

The privately-owned company has benefited from favourable results such as Arsenal’s shock defeat by West Ham and Chelsea’s dismal opening run.

Punters tend to bet heavily on the favourites – such as Arsenal and Chelsea – and when these teams do not win the bookies are in the money.

Struggling: Chelsea manager Jose Mourinho watches his team lose to rivals Manchester City. The team's dismal start to the Premier League season means bookies like Gala Coral are in the money

Gala Coral chief executive Carl Leaver said trading in the last six weeks has been ‘positive… with a strong start to the football season’ playing its part.

It came as the firm reported an 8per cent rise in profits to £65.7million for the 12 weeks to July 4 with online earnings up 28 per cent to £17.1million.

The rise in third quarter profits came despite an extra £12.9million of tax and regulatory costs imposed by Chancellor George Osborne.

It also followed a bumper third quarter last year when bookies enjoyed a surge in betting on the football World Cup in Brazil. Analysts said the Gala Coral figures underlined its value to Ladbrokes.

Gavin Kelleher, an analyst at stockbroker Goodbody, said: ‘The Ladbrokes’ investment case is mainly dependent on the merger with Coral and [the] results highlight that Coral is at present a much better business.’

Ladbrokes shares fell 0.2p to 105p. 

The tie-up between Gala Coral and Ladbrokes, which excludes Gala Coral’s 132 bingo halls, will create Britain’s biggest bookmaker with a market value of more than £2billion.

The proposals involve merging Ladbrokes with Coral Retail in the UK, Eurobet Retail in Italy and Gala Coral’s online brands.

Disgraced former bank boss Andy Hornby (pictured) is expected to be named chief operating officer of the Ladbrokes Coral combined group.

He has been heavily criticised for his role in the downfall of Halifax Bank of Scotland in the financial crisis, after years of reckless lending.

The appointment of Hornby, who joined Gala Coral in 2011, is likely to prove controversial although he will not sit on the main board of the company.