The massive resort cost $1.2bn

Under the terms of its bankruptcy, the casino should be able to keep going while developing a plan to reorganise.

A group of lenders headed by Bank of Nova Scotia has already agreed to provide $9m in funding to meet short-term cash needs for the casino, and was ready to lend an additional $41m if required.

Although its failure is a blow to LCI, the British firm had a narrow escape.

Earlier this year, it had been in talks to refinance the Aladdin and take its stake in the project to 85%.

Boom turns sour

The US gambling industry has boomed in recent years, but it has slumped badly in recent months.

Since 11 September, takings at US casinos, and especially in Las Vegas, have collapsed - suffering a far worse fall than the general slump in the hotel and tourism industry.

Even before its bankruptcy, the Aladdin had laid off about 500 of its 3,000 workers in response to the slowdown in visitors.

Las Vegas has been hit harder than the US's other main gambling centre, Atlantic City, because it depends almost entirely on visitors arriving by air.

Hotel occupancy in Vegas has fallen to below 70% since the attacks, compared with the usual seasonal average of 95%.