UPDATE 1-Boyd withdraws bid for Station Casino assets

* Cites bid procedures that favor insiders

* Assets to be auctioned by court next Friday

LOS ANGELES, July 30 (Reuters) - Casino operator Boyd Gaming Corp BYD.N has given up on efforts to acquire assets held by bankrupt Station Casinos Inc [STN.UL], citing bidding procedures that favor Station insiders.

The move clears the way for a $772 million bid led by Station’s founding Fertitta family to acquire most of the assets.

“Unfortunately, given bidding procedures that favor Station insiders, and our current view of the limited potential value of the operating and development assets, we have concluded this opportunity no longer makes sense for our company,” Boyd Chief Executive Officer Keith Smith said in a statement.

Station filed for protection from creditors last year after being unable to pay interest on the debt it took on in 2007 when the Fertittas and Colony Capital took it private in a $54 billion leveraged buyout.

Both Boyd and Station specialize in operating Las Vegas casinos that cater to local residents rather than tourists.

A Nevada judge is set to oversee an auction next Friday of most of Station’s assets.

Editing by Bernard Orr